Mastercard on Thursday reported better than expected profit of $3.2 billion for the third quarter ended September 30 on resilient spending. Its earnings per share (EPS) was at $3.39 cents.
Net revenue rose 14% at $6.5 billion, the company said.
For the fourth quarter, the company forecast a weaker-than-expected growth in net revenue. It has predicted a low double-digit percentage growth forecast for Q4 net revenue.
Mastercard said that it expects fourth quarter operating expense growth at the high-end of high single digits.
The company said that cross-border volumes rose 21% on robust travel and non-travel cross-border spending.
Its operating expenses rose about 2% at $2.7 billion from a year ago due to acquisitions and higher personnel costs.
“We delivered strong revenue and earnings growth again this quarter, reflecting the solid fundamentals of our business and the continued resilience in consumer spending,” Mastercard chief executive officer (CEO) Michael Miebach said in the statement.
“While macroeconomic and geopolitical uncertainty remains elevated, our diversified business model positions us well to capitalize on the substantial opportunities in payments and services,” Miebach added.
Shares of Mastercard fell about nearly 6% to $365.35 in New York.
On Wednesday, Mastercard announced the expansion of its consulting business with the launch of new practices dedicated to artificial intelligence and economics, to help clients across all industries rapidly and responsibly advance the use of AI.
The company is also enhancing its business transformation service, Digital Labs, for clients to create end-to-end solutions from concept development and rapid prototyping to launch and scalability.
“With the democratization of generative AI and a complex economic climate, companies need expertise and go-to-market solutions now more than ever,” said Raj Seshadri, president of Data & Services at Mastercard in a statement.
New York-based Mastercard is a global technology company in the payments industry.
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Updated: 26 Oct 2023, 10:59 PM IST