(Reuters) -Mastercard on Thursday reported a bigger-than-expected rise in second-quarter profit, boosted by resilient spending in a turbulent economy.
Unfazed by stubborn inflation and a stormy economic environment, Mastercard (NYSE:MA)’s customers continued to spend heavily on travel and entertainment even as rate hikes by the Federal Reserve have increased the odds of a recession later this year.
The company’s earnings report rounds out a tepid quarter for card issuers that have come under pressure after being on relatively solid ground compared to other industries, since last year.
On Tuesday, Mastercard’s peer Visa (NYSE:V) reported its smallest jump in quarterly profit in more than two years. American Express (NYSE:AXP) also kept its full-year profit forecast unchanged despite reporting record spending last week.
Excluding one-time costs, New York-based Mastercard earned $2.89 per share for the three months ended June 30, beating expectations of $2.82 per share, according to Refinitiv IBES data.
Gross dollar volumes, a metric that represents the total dollar value of all transactions processed, rose 12% to $2.3 trillion on a local currency basis from a year earlier.
Cross-border volume, a gauge of travel demand that tracks spending on cards outside the country of their issue, jumped 24%.
Net revenue grew 14% to $6.3 billion.
