Top 5 Statements from Mastercard’s Earnings Call

1. "Domestic volumes continued to show strong growth with notable strength in airline, lodging and restaurant spend. We've seen some shift in spend towards gas and groceries from discretionary categories like home furnishings in the U.S. Cross-border continues its strong recovery as border restrictions continue to be relaxed. Cross-border travel in quarter 2 has now reached 118% of 2019 levels. Cross-border card ex travel continued to hold up well. Notwithstanding the strength in consumer spending, we will continue to watch the environment closely, including fiscal and monetary policy responses to high inflation and their potential impact on spending." - Michael Miebach, CEO

2. "Worldwide gross dollar volume or GDV increased by 14% year-over-year on a local currency basis. On the same basis, if you exclude Russia from the prior period, GDV increased by 19%. In the U.S., GDV increased by 10% with credit growth of 25%, reflecting the recovery of spending on travel. Debit declined by 2%. Excluding the impact of a roll-off of a customer agreement, debit increased by 1%. Outside of the U.S., volume increased 16% with credit growth of 19% and debit growth of 13%. Cross-border volume was up 58% globally for the quarter, reflecting continued improvement in travel-related cross-border." - Sachin Mehra, CFO

3.?"In the U.S., what you are seeing is good strength across both, but a declining trend in terms of the growth rates on the lower income side of things. Affluent spend continues to be very healthy and carries on in a very nice way. Outside of the U.S., we're not seeing much in the nature of a shift between now. the affluent category spending versus what the lower income category spending." - Sachin Mehra, CFO

4. "In addition, Apple recently announced Apple Pay Later, which uses the Mastercard installment program. Finally, we're driving growth in payments by leaning into innovation to capture a prioritized set of new payment flows, including disbursements and remittances, commercial point of sale, B2B accounts payable and consumer bill pay. This is at the heart of the investments we've been making to develop a range of capabilities that span cards, account to account payments, push payments and blockchain." - Michael Miebach, CEO

5. "With respect to the third quarter of 2022, year-over-year net revenue is expected to grow at the high end of a high teens rate, again, on a currency-neutral basis, excluding acquisitions and special items. Sequentially, this reflects continued strong consumer spending, including a modest improvement in cross-border travel spending trends relative to 2019, reduced FX-related revenues as a result of lower anticipated FX volatility." - Michael Miebach, CEO

Bonus:

"On the macroeconomic front, we continue to monitor a number of factors that have both positive and negative influences on economic growth. Inflationary pressures have remained persistent, and we are now seeing central banks taking even more aggressive steps to reduce inflation as we have seen with the FED yesterday. The situation has been compounded by geopolitical tensions and supply chain constraints, which have eased from pandemic peaks but remain in many industries. Despite this, unemployment rates remain low, wages are rising and consumer savings levels remain high. With this backdrop, consumer spending and particularly travel-related spending remains strong." - Michael Miebach, CEO

Sentieo, an?AlphaSense?company, provides the first financial intelligence platform specifically designed for the research needs of investors.?Sentieo’s AI-powered financial search engine?aggregates internal and external content into a single shared workspace for a more efficient research process. Over 1,100 global customers use Sentieo to surface, visualize, and share the insights that give them an edge.

The content of posts reference an opinion and / or is presented for product demonstration purposes. It is provided for information purposes only. It does not constitute, nor is it intended to be investment advice. Seek a duly licensed professional for investment advice.