Google News New York's Mastercard warns of ongoing pandemic-led slowdown as Q3 income falls 28%
by SOURAV D | VIEW 7381
Later last week, the New York-based credit card behemoth and financial services company Mastercard Inc. had reported a 28 per cent plunge in its earnings over the third quarter of the year that ended on September 30 cautioning that a recovery in cross-border transactions could be a distant dream amid a second wave of the global-scale pandemic outbreak.
Aside from that, the American multinational credit card giant and payment processor had raised an alarming bell over its volume of transaction adding that a sustained recovery would more likely to be linked to the availability of a feasible pandemic vaccine.
On top of that, Mastercard Inc., the 54-year-old credit card giant had been quoted saying that the pandemic-led blows on international travels remained significant, in particular outside Europe, while the payment processor’s remarks had largely echoed Visa Inc.’s view over the business travel which reported a 23 per cent plunge in operational profit last week.
Mastercard profit tumbles as cross-border transactions tanked
Notably, Mastercard Inc.’s quarterly earnings’ report for Q3, 2020, that was released later last week, had largely mirrored the outlook of another American credit card mogul American Express that had reported a 40 per cent plunge in quarterly profit a week earlier, while AmEx had also cautioned that the scheduled business travels might not resume in more than a year and a half.
Aside from that, followed by the reveal of Mastercard Inc.’s Q3, 2020, earnings’ report, NYSE-listed shares’ prices of the credit card giant had reported a weekly plunge of roughly 11 per cent to $288.64.
In tandem, according to Mastercard Inc.’s Q3, 2020 earnings’ report, the New York-headquartered payment processor’s net income took a nosedive of 28 per cent to $1.5 billion or $1.51 per share, while excluding items, the credit card titan’s Q3 profit stood at $1.60 per share, widely missing a Wall Street forecast of $1.66 per share, data from Refinitiv had revealed.
Concomitantly, while the American multinational payment processor’s cross-border transactions jolted 36 per cent, the credit card tycoon’s net revenue dropped by 14 per cent to $3.8 billion, however, the company’s purchase volume rose 2 per cent.
Meanwhile, casting fresh doubts over the timeframe that the credit card giant would require to turn into profitability, Mastercard Chief Financial Officer Sachin Mehra said in a post-earnings’ conference call with the reporters, “While we believe that cross-border will ultimately recover, it will take time for people to build their confidence in the safety of travel.
We believe that is tied to the broad availability of vaccines and therapeutics, likely towards the latter part of next year. ”
