By Allison Prang
Mastercard Inc.'s revenue in the second quarter tumbled as the Covid-19 pandemic continued to weigh on business, the company reported Thursday.
Mastercard said its revenue fell 19% from a year earlier, to $3.34 billion. The company's top line beat the consensus estimate from Wall Street of $3.25 billion, according to FactSet.
The revenue drop was in part from a slump in gross-dollar volume, or the value of card transactions, which fell 10% on a local currency basis. Also leading to the decline in revenue was a downturn in cross-border volume, which slid 45% on a local currency basis, and switched transactions, which fell 10%.
The company reported earnings of $1.42 billion, or $1.41 a share, for the quarter ended in June. Those earnings declined from $2.05 billion, or $2 a share, a year ago.
Adjusted earnings were $1.36 a share. Wall Street expected $1.16 a share, according to FactSet.
For the quarter, the company recorded a $22 million litigation provision. Those charges were related to fees and litigation settlements with merchants in the U.K. and Pan-Europe, Mastercard said.
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