Mastercard Says Coronavirus May Trim 1Q, 2020 Revenue Growth
25 February 2020 - 10:36AM
Dow Jones News
By Stephen Nakrosis
Mastercard Inc. on Monday said year-over-year net revenue growth
in the first quarter could be affected by the coronavirus, given
its effect on cross-border travel and cross-border e-commerce
growth.
Mastercard shares dropped 2.9% to $315.28 in after-hours trading
on Monday.
"If the trends we have seen recently -- primarily in our
cross-border drivers -- continue through the end of the quarter,
year-over-year net revenue growth in the first quarter will be
approximately 2-3 percentage points lower than discussed on our
January 29, 2020 earnings call," Mastercard said, adding "Under
these circumstances, we would expect year-over-year net revenue
growth of 9-10% in the first quarter on a currency-neutral basis,
excluding acquisitions."
Mastercard had said it was expecting adjusted revenue in 2020 to
rise by a percentage in the low teens.
The company also said if the impact of the coronavirus is
limited to the first quarter, "we expect that our 2020 annual
year-over-year net revenue growth rate would be at the low end of
the low-teens range, on a currency-neutral basis, excluding
acquisitions."
Mastercard said it has been closely monitoring the situation,
and also said: "The fundamentals of our business remain strong, as
our switched volume and switched transaction growth remain in-line
with our expectations."
--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
February 24, 2020 18:21 ET (23:21 GMT)
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