Mastercard Sees Q3 Income Rise
Mastercard's Acquisition of Refinitiv boosts revenue
Mastercard Incorporated (NYSE: MA) has announced a 15.5% increase in its third-quarter revenue, amounting to $5.8 billion. This surge is primarily attributed to the company's acquisition of Refinitiv, a financial data and analytics provider, in December 2020.
Mastercard's net income for Q3 stood at $2.3 billion, representing an increase of 35% over the same period in 2020. The company's diluted earnings per share (EPS) rose by 38% to $2.11.
The number of transactions processed by Mastercard also witnessed a notable increase of 17.5% year-over-year to 8.9 billion. Notably, Mastercard's cross-border volume surged by 58%, reflecting a strong recovery in international travel and e-commerce activities
Impact to the stock market
Following the release of its Q3 financial results, Mastercard's stock price initially surged by 5.5% before settling at a slightly lower gain of 3.4% in after-hours trading.
Analysts attribute this positive market reaction to Mastercard's robust revenue growth, driven by both organic and inorganic factors. The company's acquisition of Refinitiv has significantly expanded its presence in the financial data and analytics sector, which is expected to drive further growth in the long term.
Key factors contributing to Mastercard's Q3 Success
- Acquisition and integration of Refinitiv
- Strong growth in digital payments
- Recovery in international travel and e-commerce
- Cost control and expense management
Overall, Mastercard's Q3 financial results highlight the company's resilience and adaptability amid the ongoing challenges posed by the COVID-19 pandemic. Its strategic acquisition of Refinitiv and focus on digital payment solutions have positioned Mastercard for continued success in the evolving financial landscape.
