Transaction Volumes & Expansion Efforts To Drive MasterCard’s 2Q Results

by Trefis Team
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American financial services company, MasterCard (NYSE: MA) is expected to release its second quarter financial results on July 26. The market expects the company to report a steady growth in its revenue (net of client incentives) for the quarter, backed by strong transaction volume growth. Further, the company’s focus on expanding its network of co-branding partners and improving technology to compete in the online payments segment will complement its top-line as well as bottom-line in the coming quarters. The company expects to deliver high teen revenue growth for 2018 driven by a healthy macro-economic environment and the company’s efforts to expand its product offerings.

View our interactive dashboard for MasterCard and alter the key drivers such as revenue and earnings to visualize the impact on its valuation.

Key Trends To Watch Out For In 2Q’18 Results

  • Similar to the previous quarters, MasterCard’s revenue growth is likely to be driven by its transaction revenue. The company is expected to witness significant growth in its transaction volumes, supported by the transition towards digital payments and MasterCard’s expansion plans.
  • Further, the company’s focus on improving technology to enhance payments and securitize the process should enable it to expand its customer base and co-branding partners, and consequently drive growth in volumes and revenues. The recent deals with PayPal, Bank of America, Santander, and Banque Travelex, among others, should enable the company to grow at a steady rate going forward.
  • The company’s cross-border growth is expected to be moderate due to the drop-off in crypto wallet funding. Further, its cross-border business is expected to face tougher comps for the rest of the year given the strengthening of the euro during 2017. However, the company’s expansion in developing markets should drive its international Gross Dollar Volume (GDV).
  • MasterCard will continue to accelerate its investments in strategic areas such as safety and security, digital, and B2B products. These investments are likely to drive its value in the long term.

Disagree with our forecasts? Create your own price estimate for MasterCard by changing the base inputs (blue dots) on our interactive dashboard.


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