The Strategist

MasterCard shows unexpectedly good performance in 2020


01/29/2021 - 04:14



MasterCard published its financial report for the fourth quarter and the entire year 2020. The company managed to beat analysts' expectations and its shares rose by 3% immediately after the release.



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The COVID-19 pandemic had a negative impact on consumer activity, especially spending abroad, as most countries were closed for travel for most of the year. 

As a result, this figure fell by 29%, both in the fourth quarter and for the whole of 2020.

The payment operator's quarter-on-quarter revenue fell 7% to $4.1 billion, slightly better than analysts polled by Refinitiv had expected it to be ($4 billion). 

For the year as a whole, revenues fell 9% to $15.3 bln.

Net income for the quarter was $1.6 bln, or $1.64 per share (-17%, analysts had forecast $1.51 per share). For the year as a whole, the company's net profit amounted to $6.5 billion, which is 19% worse than the figure for 2019.

source: reuters.com