Mastercard reported a second-quarter profit on Thursday that comfortably beat estimates, underpinned by a recovery in global spending as businesses start to reopen and travel shows signs of a rebound.
The company’s cross-border volumes, which track spending on its cards beyond the country of issue, rose 58% on a local currency basis, driven by a pickup in international travel.
The volumes had plunged 45% in the same period a year earlier.
Latin America is the region where Mastercard‘s operation grew the most in the first half of 2021 (22% considering all the company’s all credit, charge, and debit programs) – also because the region took the worst plunged last year due to the COVID-19 pandemic.
The company’s shares were up about 2.6% at $393.74, as the upbeat results rounded out a positive quarter from payment processors including Visa and American Express.
U.S. consumer spending on airlines improved significantly since the early part of the quarter and volumes were now back to pre-pandemic levels, chief financial officer Sachin Mehra said.
Consumer spending saw a spike during the quarter due to massive government stimulus packages, sending Mastercard‘s gross dollar volumes, or the dollar value of the transactions processed, up 33% on a local currency basis to $1.9 trillion.
Net income, excluding exceptional items, rose to $1.9 billion, or $1.95 per share, from $1.4 billion, or $1.36 per share a year earlier. Analysts on average had expected a profit of $1.75 per share, according to Refinitiv IBES data.