Mastercard Inc (NYSE:MA) stock fell over 1.2% on 29th Jan, 2021 (as of 10:05 am GMT-5 ; Source: Google finance) after the company posted mixed results for the fourth quarter of FY 20. Cross-border volume fell 29% on a local currency basis. In the December quarter, the company’s revenue has fallen at a slower pace than in the preceding quarters, although the pandemic continues to weigh on its cross-border volumes. Business travel will more time to recover than personal travel, and the company also indicated that it does not anticipates spending in the current quarter to improve from its January levels, which have been boosted by the stimulus package. In the third week of January, transactions in the U.S. were up 7%, but those outside the United States fell 2%. During the fourth quarter, US retail sales were up 4%, ex-auto, ex-gas, while overall Europe retail sales slowed with a fall of 1.9% for the quarter, in part due to the recent lockdown.
The company has signaled a near-term rebound in business as it expects an uptick in travel due to easing lockdowns and improved COVID-19 vaccination efforts. Gross dollar volume rose 1% from a year earlier to $1.7 trillion on a local currency basis. In Asia, the company has seen some recovery in markets like Australia and then similarly in Latin America, the retail sales in Brazil rebounded this quarter.
Meanwhile, in US, the company will be the network partner for the Citi Plex Account on Google Pay which leverages the tokenization services to provide Citi Plex customers with a seamless and more secure payment experience. Further, the company has announced a new strategic partnership with Walgreens. In both the UK and Spain, the company is innovating with IAG Loyalty, part of the International Airlines Group, on new co-brand and loyalty partnership that will give customers more choices to earn Avios points and reward them with exclusive benefits.
MA in the fourth quarter of FY 20 has reported the adjusted earnings per share of $1.64, while reported 7 percent fall in the adjusted revenue to $4.1 billion in the fourth quarter of FY 20. Operating income had decreased 12% and net income had fallen 17%, both of which include a 2 ppt decrease related to acquisitions.