Mastercard Inc (MA.N) sailed past market estimates for quarterly profit on Thursday as a surge in cross-border spending sparked by this year's travel boom more than offset higher costs.
Pent-up demand and the easing of COVID-19 curbs have led to the strongest summer travel season in three years, a boon for card companies that can charge more for overseas transactions.
Mastercard said cross-border volumes jumped 58% on a local currency basis in the April-June quarter, helping drive up gross dollar volumes on its
The surge mirrored similar results at Visa Inc (V.N) and American Express Co (AXP.N), indicating consumers were still spending on travel and other high-end pursuits in the face of decades-high inflation and the threat of a possible recession. read more
"Increasing inflationary pressures have yet to significantly impact overall consumer spending but we will continue to monitor this closely," Chief Executive Michael Miebach said in a statement.
Net revenue jumped 21% to $5.49 billion and was higher than estimates of $5.26 billion, according to Refinitiv IBES data.
Mastercard earned a profit of $2.56 per share on an adjusted basis, compared with the $2.36 expected by analysts. The company's shares rose 1.7% in premarket trading.
Operating expenses, excluding one-time costs, were up 9%.
