News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexCryptocurrenciesCybersecurityPress Releases

Mastercard brushes off Omicron threat after profit beat

01/27/2022 | 08:09am EDT

Jan 27 (Reuters) - Mastercard Inc beat quarterly profit estimates on Thursday as an uptick in international travel powered card spending and said a recent drag on cross-border travel from the Omicron variant was unlikely to persist.

Increased vaccinations and easing pandemic-related curbs had backed a recovery in spending, but surging COVID-19 infections from the Omicron variant pressured cross-border travel in the tail end of the fourth quarter and into January.

Chief Executive Officer Michael Miebach, however, said cross-border travel will return to pre-pandemic levels by the end of the year.

"There are early signs that the Omicron will be relatively short-lived."

Shares of the company rose 4.3% to $359.22 as cross-border volumes - a key metric that tracks card spending beyond the country of issue - surged 53% during the quarter.

Mastercard's gross dollar volumes jumped 23% to $2.1 trillion from a year earlier. The metric represents the dollar value of the transactions processed.

Rival American Express Co also beat quarterly profit estimates on record levels of spending through its cards, while Visa Inc is slated to report earnings later in the day.

Mastercard's net revenue rose 27% to $5.2 billion in the quarter ended Dec. 31, above estimates of $5.16 billion, according to Refinitiv data.

But its operating expenses, excluding acquisition costs, rose 12% on the back of higher spending on personnel, marketing and data processing.

Profit rose to $2.4 billion, or $2.41 per share, from $1.8 billion, or $1.78 per share, a year earlier.

On an adjusted basis, Mastercard earned $2.35 per share, above estimates of $2.21. (Reporting by Sohini Podder in Bengaluru; Editing by Shounak Dasgupta, Arun Koyyur and Devika Syamnath)

© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
AMERICAN EXPRESS COMPANY 1.35% 140.02 Delayed Quote.-14.64%
MASTERCARD, INC. 0.80% 322.16 Delayed Quote.-11.15%
Latest news "Economy & Forex"
12:10pSanctioned Venezuelan staves off auction of New York City apartment
12:05pBrazil expects record 2022 wheat crop of 9 mln tonnes
12:01pTwitter says it removes over 1 million spam accounts each day
12:00pMeta will no longer require a facebook account to access its vir…
12:00pFacebook owner meta to roll out new login system for vr headsets…
11:53aCanada's Ukrainians urge Trudeau to refuse Russian demand to return gas turbine
11:48aFrench inflation-relief package to cost 20 billion euros
11:46aFlutterwave's accounts frozen in Kenya over money laundering claims
11:45aChinese, Russian parties exchange views on building bilateral ties - Chinese media
11:42aBurkina Faso's ousted ex-president Compaore returns for summit
Latest news "Economy & Forex"