Mastercard Q1 Earnings Beat Street View As Travel Spending Rebounds

Mastercard Incorporated MA has reported Q1 sales of $5.2 billion, up 24% (28% currency-neutral), beating the consensus of $4.91 billion.
Gross dollar volume increased 17%, on a local currency basis, to $1.9 trillion.
Cross-border volume growth of 53% on a local currency basis, with switched transactions growth of 22%.
Other revenues increased 18%, or 20% on a currency-neutral basis, including 7 percentage points of growth due to acquisitions.
The remaining growth was driven primarily by the company's Cyber & Intelligence and Data & Services solutions.
Related: Read Barclays' Take On Visa, Mastercard, PayPal Amid Present Macro Environment.
"Russia's invasion of Ukraine marked a somber start to 2022, as war returned to Europe for the first time in decades," said Michael Miebach, Mastercard CEO.
Mastercard CFO told Reuters that if headwinds from the Ukraine conflict persist, then Net Revenue CAGR will take a 2% hit.
"As of March, cross-border travel is above 2019 levels for the first time since the pandemic began and ahead of our expectations...We're seeing strong traction in consumer and small business payments, Mastercard Installments, and our work across the digital asset space," Miebach added.
The operating margin improved to 57.1% from 52.9% a year ago.
The adjusted EPS reached $2.76, up 59% Y/Y and better than the consensus of $2.17.
Price Action: MA shares are up 3.52% at $374.30 on the last check Thursday.
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