- Mastercard reported strong second-quarter financial results. Net revenue rose 14% to $6.3 billion compared to the same period last year. When adjusted for currency fluctuations, it was up 15%, driven by the growth in the payment network and value-added services and solutions.
- Payment network net revenue rose by 13%, with significant contributions from a 12% growth in gross dollar volume and a 24% increase in cross-border volume. Switched transactions also grew by 17%, adding to the overall payment network net revenue. Value-added services and solutions net revenue increased by 16%, primarily due to the growth in cyber and intelligence solutions and strong demand for consulting and marketing services.
- Michael Miebach, Mastercard CEO, highlighted the positive momentum driven by resilient consumer spending, particularly in travel and experiences, and the strength in services. Cross-border travel volume also showed significant growth, reaching 154% of pre-pandemic levels.
On a GAAP basis, operating income improved by 21% with an operating margin of 58.3%. Compared to Q2 2022, non-GAAP net income and diluted EPS increased by 10% and 13%, respectively, coming at $2.7 billion and $2.89. - Total operating expenses rose by 5%, mainly attributed to higher personnel costs.
- In terms of revenue growth, the US and the rest of the world showed similar strong performance for Q2 2023. This balanced growth indicates that Mastercard’s business strategies, model, and services have been well-received and effective in various markets, and cycles, worldwide. Overall, Mastercard’s second-quarter results reflect a robust financial performance with significant revenue and earnings growth. The company’s ability to adapt to changing consumer trends and strengthen its position as a preferred partner bodes well for its future prospects in the global payment industry. We own share of Mastercard in the Cratos BCI Worldwide Equity Fund.
By Lee Kern
Join our Mailing list!
Sign up to get all the latest financial news and business updates.
Sign up to get all the latest financial news and business updates.