Growth in Cross-Border Spending returned to Pre-Pandemic Level

Mastercard (NYSE: MA) announced its 2021 Q3 financial results on October 28, 2021. According to the announcement, total revenue was up 30% (YoY, 3 months). In addition, operating income and net income were up 29% and 59%, respectively. Moreover, diluted EPS was up 62%. According to the announcement, growth in cross-border spending has recently returned to pre-pandemic levels. 

Looking at the Gross Payment Volume (GPV, USD basis) by region, Latin America had the highest growth of up 38.7%. It was followed by Europe of up 27.5% and Canada of up 23.6% (YoY, 3 months).

Mastercard’s stock price has underperformed the S&P 500 since the beginning of the year.  In this regard, we believe that further improvement in the COVID-19 pandemic is necessary for its stock price growth.

Important Notice 

  1. Watanabe & Brothers’ Investment is holding shares of Mastercard.
  2. This report is provided solely for informational purpose and not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell any specific products. 
  3. Any opinions or statements expressed in this report are based on the author’s personal and subjective views, and are not the official views of the organization to which the author belongs.  In addition, although we have done our best efforts in making accurate assessments on the original financial statements, we cannot guarantee any complete accuracy of this report. We do not guarantee either that any future forecasts referred to in this report will certainly be realized. Investment in listed stocks, ETFs, etc. should be carried out under the responsibility of each investor, and even if the investor who read this report suffers a loss due to investment activities, Watanabe & Brothers’  Investment is not responsible for any liability.
  4. This report was originally prepared in English, and translated into the other languages with plugin utilizing Google Translation API. We hereby notify that the translations are provided only for the sake of reference, and any opinions or statements in this report should be interpreted in original English. We ask any investors reading this report to refer to the original financial statements issued by the company.
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