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Higher consumer spending helps Mastercard beat quarterly profit estimates

FILE PHOTO: Mastercard Inc. credit cards are displayed in this picture illustration

(Reuters) - Mastercard Inc on Tuesday beat Wall Street estimates for quarterly profit, as a robust economy encouraged customers to spend more, boosting fee income for the world's second-largest payment processor.

The company's gross dollar volume, the dollar value of transactions processed, rose 8.3% to $1.60 trillion in the second quarter.

Overall consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose in April and May, while U.S. retail sales registered solid growth in every month of the quarter.

Around 26.80 billion transactions were processed, up nearly 21% from a year earlier. The gain was led by a 10% rise in the United States and a 31% jump in Europe.

Net revenue rose 12.2% to $4.11 billion, edging past analysts' estimates of $4.08 billion.

The company's net income rose to $2.05 billion, or $2 per share, in the second quarter ended June 30, from $1.57 billion, or $1.5 per share, a year earlier. (https://bit.ly/2YrlOel)

On an adjusted basis, the company earned $1.89 per share. Analysts on average had expected a profit of $1.83, according to IBES data from Refinitiv.


(Reporting by Bharath Manjesh in Bengaluru; Editing by Maju Samuel)