American Express beats estimate, as rewards program boosts spending


by   |  VIEW 1175
American Express beats estimate, as rewards program boosts spending

On Thursday, the 18th of April 2019, the US-based multinational credit card issuer, American Express Co. had posted a quarterly profit that had beaten analysts’ forecast by a wide margin, while analysts were quoted saying that its reward programs boosting customer spending had played a pivotal role behind its first quarterly profit.

Followed by the reveal of first quarterly profit that beats analysts’ forecast by a wide margin, shares of American Express, listed in NYSE, had rounded the day off 1.69 percent higher to $113.67. In fact, the credit card issuer headquartered in New York had been boosting up its rewards programs and leaning more on to partnerships to make its customers spending more of its credit cards.

According to the company data, its renewal of partnership with Delta Air Lines Inc. had brought more than a million customers over the past couple of years. On a year-on-year basis, the Amex’s reward program spending had surged more than 4 percent.

During the announcement of quarterly earnings on Thursday (April 18th), the US-based credit card issuer had also added the total expenses made through its credit cards had been up by 11 percent at $7.6 billion, while the company had spent a lump-sum of $2.46 billion on credit card reward programs, 4 percent up from previous year as beforementioned.