Mastercard earnings drop nearly 6% on drop in cross-border spending By Reuters

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© Reuters. FILE PHOTO: Illustration photo of a Mastercard logo on a credit card

(Reuters) – Mastercard Inc (NYSE 🙂 reported a nearly 6% drop in first-quarter earnings on Thursday, mainly driven by a sharp drop in cross-border spending on its cards due to a drop in international travel due to COVID- 19 pandemic. Net income, excluding exceptional items, fell to $ 1.7 billion, or $ 1.74 per share, from $ 1.8 billion, or $ 1.83 per share, a year earlier. Analysts, on average, expected a profit of $ 1.57 per share, according to data from Refinitiv IBES. Over the past year, major card companies and payment processors were hit by a near collapse in travel demand and spending on non-essential items during the COVID-19 pandemic. A recession from the recession fueled by last year’s pandemic has raised consumer spending in some parts of the world, but new cross-border restrictions due to resurgence in infections are hurting the outlook for credit card issuers. Mastercard’s cross-border volume, one of the key measures that tracks spending on its cards beyond the country of issue, fell 17% in local currency in the first quarter. Net income increased 4% in the quarter to $ 4.2 billion, ahead of estimates of $ 3.99 billion. (This story corrects the last paragraph to say that revenue increased 4%, not decreased)

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