Key points:
- Mastercard relishes consumer travel spending bounce
- Revenue rose to $5.2B from $4.2B
- Cross-border spending grew 53% year over year
Shares of payment provider Mastercard (NYSE: MA) were up around 3% in premarket trading today, before reversing to a loss of 3% with the opening bell. The payment giant easily and unsurprisingly topped expectations for the first quarter, relishing the strong bounce in travel spending after two years of pent-up consumer demand. Cross-border travel spending has surpassed 2019 levels for the first time since the beginning of the pandemic.
Mastercard reported net income of $2.6B, or EPS of $2.68 per share; up from $1.8B or $1.83 per share in Q121. Revenue rose to $5.2B from $4.2B, edging past the analyst expectation of $4.9B. The company also pointed to a 17% increase in gross dollar volume and a 21% increase in purchase volume, gross volume is the metric used representing the total dollar value of all transactions processed by Mastercard.
The company noted that despite the problematic economic climate, the company is off to a powerful start thanks to the strong rebound in cross-border spending; growing 53% year over year. The story was much the same in Visa’s quarterly report earlier in the week, and American Express last week.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
The company finished Q1 on an upbeat note, with spending momentum gaining despite various headwinds from inflation and looming fears of growing Covid variants. It will be interesting to see how the following quarters shape up for payment providers, given that inflation will continue to weigh on consumer spending; and will probably overshadow the brief travel boom. MA stock currently trades at a loss of 3.4%, down just 1% YTD.
