Mastercard Inc.’s card volume rose more than expected as consumers continued to flock to overseas travel destinations and other entertainment options.
Purchase volume on the firm’s cards jumped 13.5% to $1.84 trillion, Purchase, New York-based Mastercard said Thursday in a statement. That topped the $1.83 trillion average of analysts’ estimates compiled by Bloomberg.
“Our positive momentum continued this quarter,” Chief Executive Officer Michael Miebach said in the statement. “We delivered strong revenue and earnings growth supported by resilient consumer spending, particularly in travel and experiences.”
Revenue for the quarter climbed 14%, helping boost profits to $2.8 billion, or $3 a share. That topped the $2.82 average of estimates compiled by Bloomberg.
Consumers have defied analysts’ expectations as they continue to spend more on travel and entertainment even a year after being freed from pandemic-era restrictions. At Mastercard, spending tied to overseas travel is currently at 154% of pre-pandemic levels, Miebach said in the statement.
Mastercard rival Visa Inc. said earlier this week that spending on its cards jumped, also crediting higher volumes tied to travel.
Mastercard reiterated a previous forecast that adjusted revenue would climb by a percentage in the “low teens” while costs would increase by “a high-end of high-single digits” percentage.
Shares of Mastercard were little changed at $402.21 at 9:46 a.m. in New York. They’ve gained 16% this year, more than the 3.6% increase for the S&P 500 Financials Index.
(Updates shares in last paragraph.)
