Mastercard and Visa announced Financial Results on October 28th, 2020

Mastercard (NYSE: MA) announced 2020 Q3 earning results on October 28th, 2020. According to the announcement, net revenue, operating income, and net income decreased year-over-year mainly due to the decline in consumer spending caused by COVID-19. The decline in consumer spending has not yet recovered to the level before the pandemic. However, these parameters recovered in this quarter compared to 2020 Q2. 

In addition, according to Visa’s 2020 Q4 earning results, which was announced on the same day, recovery of the consumer spending is continuing although cross-border transactions are still stagnant. 

According to the announcement by Visa (NYSE: V), total transaction volume (payment, cash) in LAC countries decreased the most severely by 16.4% followed by Asia Pacific of 10.6% decrease. Meanwhile, Canada and CEMEA decreased by 3.4% and 2.3%, respectively, while the US and Europe showed single-digit growth. On a quarterly basis, total transaction volume fell the most severely from April to June 2020, with double-digit decreases in all regions except for the US. On the other hand, total transaction volume in the LAC countries and the Asia Pacific recovered in this quarter compared 2020 Q2 although decline rates year-over-year are still double digit level. 

If the COVID-19 infection in each region becomes more serious in this winter, consumer spending may decline again even though the circumstances may be less severer compared to the preceding quarter. 

Important Notice 

  1. Watanabe & Brothers’ Investment is holding shares of Mastercard and Visa.
  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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