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© Reuters. Mastercard earnings beat expectations
to gasoline –
- Mastercard Inc (NYSE:MA) reported first quarter 2023 net revenues of $5.75 billion, up 11% year over year and 14% currency neutral, beating the $5.64 billion consensus .
- Payment network net revenues increased 7% y/y (+10% at constant currency), led by growth in USD gross volume (+15% y/y), cross-border volume (+35% y/y) /y) and switched operations (+12% y/y).
- Net revenues from value-added services and solutions increased 19% y/y (+21% y/y on a neutral currency basis), driven by continued strong growth in information and intelligence solutions and high demand for data analysis, consultancy and marketing.
- As of March 31, 2023, customers had 3.2 billion Mastercard and Maestro branded cards.
- Adjusted operating expenses increased 10% year over year to $2.4 billion due to higher personnel expenses.
- Adjusted operating margin increased by 70 bps Y/Y to 58.2%.
- Adjusted EPS rose 1% year over year to $2.80, topping the consensus of $2.72.
- In the first quarter, Mastercard repurchased $2.9 billion worth of shares and paid $545 million in dividends.
- Cash flow from operating activities was $1.9 billion in the first quarter.
- Cash and cash equivalents totaled $8.8 billion at the end of Q1 2023.
- Forecasts For 2023, the company expects net revenues to grow at the low end and adjusted operating expenses to grow a little over 10%.
- In the second quarter of 2023, MA expects both net revenues and adjusted operating expenses to grow approximately 10% y/y.
- “We are actively managing the business to capitalize on the significant digital services and payment opportunities ahead of us and are ready to overcome any adversity. We are making sure that people and businesses can use their Mastercard when and where they want, now surpassing the 100 million points of acceptance worldwide. As we look to the future, I believe our focused strategy, diversified business model and worldwide relationships position us very well,” said CEO Michael Miebach.
- Price movement MA shares were at breakeven at $366.55 at the start of the session.
Read the article also in Benzinga Italy