Mastercard profit exceeds estimates of overall spending increase

July 29 (Reuters) – Mastercard Inc (MA.N) on Thursday reported second-quarter profit that significantly exceeded estimates, helped by improving overall spending and recovering cross-border volumes.

Card companies have benefited from increased spending volumes as rapid vaccination programs and a drop in COVID-19 infections have enabled governments to lift lockdowns induced by the pandemic.

Net income, excluding special items, reached $ 1.9 billion, or $ 1.95 per share, from $ 1.4 billion, or $ 1.36 per share a year earlier.

Analysts on average expected earnings of $ 1.75 per share, according to data from Refinitiv IBES.

Mastercard’s cross-border volumes, which track spending on its cards beyond the country of issue, increased 58% in local currency, thanks to a pickup in international travel.

Volumes had fallen 45% over the same period a year ago.

“International travel is still in the early stages of the recovery and represents further upside potential,” Managing Director Michael Miebach said in a statement.

Report by Sohini Podder in Bengaluru; Editing by Saumyadeb Chakrabarty

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