Mastercard Surprises with Impressive Growth

Mastercard was able to impress with its strong figures in the third quarter of the fiscal year. Net revenue rose by 13 percent compared to the previous year, reaching 7.37 billion USD, exceeding analysts' expectations. In constant currency terms, the increase was even 14 percent. The adjusted earnings per share increased by 15 percent, reaching 3.89 USD, also above analysts' forecasts. Last year, the payment network reported a significant increase of 10 percent in net revenue. Driving factors were the growth in gross dollar volume, cross-border transactions, and the increase in switched transactions. In the areas of cyber and intelligence solutions, as well as consulting and marketing services, Mastercard experienced strong demand. Revenues from value-added services and solutions increased by 18 percent, with a 19 percent increase on a constant currency basis. Switched transaction volumes rose by 11 percent, and cross-border transaction volumes, reflecting travel enthusiasm, increased by 17 percent. The adjusted operating margin grew by 50 basis points to 59.3 percent. With a 3 percent growth on a constant currency basis, net income climbed to 3.3 billion USD. As of September 30, 2024, customers worldwide had 3.4 billion Mastercard and Maestro cards in circulation. During the quarter, Mastercard repurchased 6.3 million of its own shares worth 2.9 billion USD and distributed dividends amounting to 611 million USD. Cash and cash equivalents reached 11.4 billion USD. CEO Michael Miebach emphasized the robust consumer spending trends and growing demand for their services. The company also intends to further expand its portfolio through the anticipated acquisitions of Recorded Future and Minna Technologies, with enhanced AI-driven threat analysis and subscription management solutions. The company views the economic outlook in Europe and China particularly optimistically.