leadf
logo-loader
viewMastercard

Mastercard sees quarterly profit miss forecasts as coronavirus pandemic hits global travel and related spending

The NYSE-listed payments processor said its net income fell by 28% to $1.5 billion, or $1.51 per share, in the third quarter ended September 30, 2020

Mastercard -
Mastercard’s total operating expenses fell by 4% to $1.7 billion in the quarter

Mastercard Inc (NYSE:MA) saw its quarterly profit miss analyst estimates on Wednesday as the coronavirus (COVID-19) pandemic led to a slowdown in global travel and related spending

The NYSE-listed firm said its net income fell by 28% to $1.5 billion, or $1.51 per share, in the third quarter ended September 30, 2020. Excluding one-off items, Mastercard's profit was $1.60 per share, missing Wall Street estimates of $1.66.

Mastercard’s total operating expenses fell by 4% to $1.7 billion in the quarter.

The group reported a 36% drop in cross-border volume on a local currency basis in the reported quarter. Gross dollar volume, the dollar value of transactions processed, however, rose by 1% to $1.6 trillion.

“We are seeing encouraging progress in the trajectory of domestic spending, while travel spending remains a challenge,” Mastercard chief executive officer Ajay Banga said in the quarterly earnings statement.

American Express last Friday warned that business travel spending would not pick up before early 2022 after reporting underwhelming third-quarter profit due to weak spending on travel and entertainment by its card users.

Mastercard shares were more than 6% lower at $298.01 in early morning trade in New York on Wednesday.

Quick facts: Mastercard

Price: 338.19 USD

NYSE:MA
Market: NYSE
Market Cap: $336.37 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Tech in Focus with Richard Jeans

Proactive London's Richard Jeans talks through some of the big movers for the tech stock this week. With tech stocks outperforming during the pandemic, most firms have lagged this week as investors have chased sectors that have languished during the pandemic such as mining and oil, financial...

1 hour, 47 minutes ago

2 min read