Mastercard Inc. said spending growth on its cards accelerated in the first three months of the year as the payment giant continues to benefit from a rebound in travel.
(Bloomberg) — Mastercard Inc. said spending growth on its cards accelerated in the first three months of the year as the payment giant continues to benefit from a rebound in travel.
Total purchase volume jumped 17% to $1.71 trillion in the first quarter, topping the $1.65 trillion average of analyst estimates compiled by Bloomberg. That helped boost net revenue to $5.7 billion, also topping estimates.
“We delivered strong revenue and earnings growth this quarter, reflecting resilient consumer spending and the continued recovery of cross-border travel,” Chief Executive Officer Michael Miebach said in a statement announcing the results. “We are actively managing the business to capitalize on the significant digital payment and services opportunities ahead, and stand ready to navigate through any headwinds.”
Mastercard and rival Visa Inc. have benefited as consumers, freed from pandemic-era restrictions, resume traveling and dining out. Earlier this week, Visa said cross-border volume — a key metric because such transactions are typically more lucrative than domestic payments — soared 24% in the first three months of the year.
At Purchase, New York-based Mastercard, first-quarter net income slipped to $2.4 billion. Adjusted for one-time items, earnings per share were $2.80, compared with the $2.72 average of analysts’ estimates.
Mastercard shares climbed 0.9% at 8:08 a.m. in early New York trading. They gained 5.5% this year through Wednesday, compared with a 5.9% decline for the S&P 500 Financials Index.
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