U.S. Markets closed
  • S&P 500

    3,811.15
    -18.19 (-0.48%)
     
  • Dow 30

    30,932.37
    -469.64 (-1.50%)
     
  • Nasdaq

    13,192.35
    +72.92 (+0.56%)
     
  • Russell 2000

    2,201.05
    +0.88 (+0.04%)
     
  • Crude Oil

    61.66
    -1.87 (-2.94%)
     
  • Gold

    1,733.00
    -42.40 (-2.39%)
     
  • Silver

    26.70
    -0.98 (-3.56%)
     
  • EUR/USD

    1.2088
    -0.0099 (-0.8099%)
     
  • 10-Yr Bond

    1.4600
    -0.0580 (-3.82%)
     
  • Vix

    27.95
    -0.94 (-3.25%)
     
  • GBP/USD

    1.3921
    -0.0091 (-0.6529%)
     
  • USD/JPY

    106.5500
    +0.3200 (+0.3012%)
     
  • BTC-USD

    47,514.79
    +707.57 (+1.51%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • Nikkei 225

    28,966.01
    -1,202.26 (-3.99%)
     

Mastercard beats profit estimates as customers spend more

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
FILE PHOTO: Illustration photo of a Mastercard logo on a credit card
  • Oops!
    Something went wrong.
    Please try again later.

(Reuters) - Payments processor Mastercard Inc on Thursday beat Wall Street estimates for fourth-quarter profit, as growth in overall transactions partially offset the impact of a decline in cross-border volumes.

Excluding items, Mastercard reported net income of $1.6 billion for the quarter ended Dec. 31, or $1.64 per share, compared with $2 billion a year earlier, or $1.96 a share.

Analysts on average were expecting a profit of $1.51 per share, according to the IBES estimate from Refinitiv.

Mastercard's shares jumped nearly 3% in trading before the bell, after the results were announced.

A slump in travel demand and discretionary spending has taken a toll on the bottom line of credit card companies and payment processors.

Still, Mastercard managed to drive growth in overall volumes during the quarter. Gross dollar volume growth rose 1% to $1.7 trillion from a year earlier.

Cross-border volume, a measure for spending outside the country where the card was issued, fell 29% on a local currency basis in the quarter.

Net revenue fell 7% to $4.1 billion, due to the hit from cross-border volumes, but still came in slightly ahead of estimates of roughly $4 billion.

(Reporting by Niket Nishant in Bengaluru; Editing by Shinjini Ganguli)