Mastercard improves its earnings thanks to its own customers
Mastercard Inc beat Wall Street estimates on July 30 for quarterly earnings. Although the company relies heavily on its customers, the international economy allowed users to spend more money, increasing the value of the company.
The dollar value of transactions processed or services rendered, increased 8.3%, which is reflected in $1.60 billion in the second quarter. Total consumer spending, which accounts for more than two-thirds of US economic activity, increased in April and May, while US retail sales posted strong growth in every month of the quarter.
About 26.80 billion transactions were processed, almost 21% more than the previous year. The gain was led by a 10% increase in the United States and a 31% jump in Europe. Net income increased 12.2% to $4.11 billion, topping previous analyst estimates of $4.08 billion.
Mastercard INC's net income increased to $2.05 billion, in the second quarter ending June 30, from $1.57 billion, a year earlier. 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.
Source: Mastercar INC.
