Mastercard’s Business Performance is slowing down in 2022 Q4

Mastercard (NYSE: MA) announced its 2022 Q4 financial results on January 26, 2023. According to the announcement, net revenue was up 12% (3 months, YoY, GAAP). In addition, operating income and net income were up 13% and 6%, respectively.

In addition, net cash provided by operating activities recorded an inflow of 11,195 million USD (+18%, TTM, YoY). Additionally, free cash flow recorded an inflow of 9,725 million USD (+132%, TTM, YoY). As for the large increase in free cash flow, it was decreased in 2021 due to a business acquisition. Thus, the higher growth of the free cash flow seems to be due to the its decrease in 2021.

Regarding GDV in 2022 Q4, Latin America recorded the highest growth of +21.2% (3 months, YoY, USD). However, the world wide GDV was up only 0.8%. It indicates that the growth of payment amounts overall became a stagnant in 2022 Q4. 

In addition, GDV is -5.1% for Europe and -4.8% for APMEA (3 months, YoY, USD). These figures indicate slowdown trends in these regions. For the United States, GDV recored a slight increase of +0.9% (3 months, YoY, USD).

Finally, the rebound in demand after the COVID-19 pandemic seems to be settled down. Thus, the business growth is beginning to slow down. Going forward, we speculate that the company’s business performance is likely to maintain a low level of growth in line with the growth of the global economy.

Mastercard Incorporated (NYSE: MA) Stock Chart

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