Free Cash Flow was Up 384% in Mastercard’s 2022 Q3 Results

Mastercard (NYSE: MA) announced 2022 Q3 financial results on October 27, 2022. According to the announcement, net revenue, operating income and net income were up 15%, 14% and 4%, respectively (YoY, 3 months). On quarter-over-quarter basis, these were up 5%, 3%, and 9%, respectively. Thus, 2022 Q3 results showed no signs of slowdown of the company’s growth.

Mastarcard image displayed on iPhone.
Photo by CardMapr.nl on Unsplash 

In addition, net cash provided by operating activities was up 29% (YoY, 9 months). Moreover, free cash flow (FCF) showed a strong growth of up 384%.

Let’s look at gross dollar volume (GDV) by region. First, Latin America showed the highest growth of up 24.5% (YoY, 3 months, USD). It was followed by Canada of up 13.7%.  Europe showed the largest slowdown of down 6.3% (YoY, 3 months, USD). However, GDV in Europe was up 7.5% in terms of local currency. Thus, the slowdown in Europe seems to be affected by the weaker Euro.

Recently, the credit card industry is recording superior business performance under the rebound demands of international travel. The international travel demand had been significantly suppressed under the COVID-19 pandemic. In particular, the prominent increase in FCF would have a positive impact on Mastercard’s stock price.

Mastercard Incorporated (NYSE: MA) Stock Chart

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