Mastercard's Profit Jumps on Strong Holiday Spending

A sticker shows that a store accepts MasterCard in Harvard Square in Cambridge, Massachusetts, US, July 25, 2018. REUTERS/Brian Snyder/File Photo
A sticker shows that a store accepts MasterCard in Harvard Square in Cambridge, Massachusetts, US, July 25, 2018. REUTERS/Brian Snyder/File Photo
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Mastercard's Profit Jumps on Strong Holiday Spending

A sticker shows that a store accepts MasterCard in Harvard Square in Cambridge, Massachusetts, US, July 25, 2018. REUTERS/Brian Snyder/File Photo
A sticker shows that a store accepts MasterCard in Harvard Square in Cambridge, Massachusetts, US, July 25, 2018. REUTERS/Brian Snyder/File Photo

Mastercard reported a higher fourth-quarter profit on Thursday as a resilient economy encouraged consumers to ramp up spending during the holiday season, sending the company's shares up 2% before the bell.

Spending continues to be underpinned by a solid labor market and wage growth that have spurred consumer confidence, while retailers also offered discounts to attract budget-conscious shoppers during the holiday season between Thanksgiving and Christmas.

Mastercard's gross dollar volume, the value of all transactions processed on the company's platform, rose 12% in the fourth quarter.

Cross-border volume, which tracks spending on cards outside of the country of their issue, jumped 20%, Reuters reported.

Mastercard has a more balanced global exposure compared with its peers, with the company benefiting from continued stability in volume growth, analysts have said.

The company has also focused on bolstering its value-added services such as fraud protection to diversify its business model.

Revenue from the company's value-added services and solutions unit rose 17% in the fourth quarter. Mastercard's net revenue increased 16% to $7.49 billion.

The company forecast 2025 net revenue to increase in the low double-digits percentage range, compared with the average analyst estimate of 12.7% growth, according to data compiled by LSEG.

Mastercard's net income rose to $3.34 billion, or $3.64 per share, in the three months ended Dec. 31, compared with $2.79 billion, or $2.97 per share, a year earlier.

American Express last week also reported better-than-expected quarterly revenue on strong holiday spending.

Mastercard's shares jumped 23.5% in 2024, outperforming rival Visa's 21.4% gain. Last month, Mastercard unveiled a $12 billion share repurchase program.

Visa, the world's largest payments processor, will report earnings later in the day.



Qatar Signs Deal with Scale AI to Use AI to Boost Government Services

The offices of artificial intelligence tech company Scale AI in Montreal, Quebec, Canada April 7, 2024. REUTERS/Evan Buhler/File Photo
The offices of artificial intelligence tech company Scale AI in Montreal, Quebec, Canada April 7, 2024. REUTERS/Evan Buhler/File Photo
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Qatar Signs Deal with Scale AI to Use AI to Boost Government Services

The offices of artificial intelligence tech company Scale AI in Montreal, Quebec, Canada April 7, 2024. REUTERS/Evan Buhler/File Photo
The offices of artificial intelligence tech company Scale AI in Montreal, Quebec, Canada April 7, 2024. REUTERS/Evan Buhler/File Photo

Qatar's government has signed a five-year deal with AI data company Scale AI to deploy AI-powered tools and training in a push to improve government services in the Gulf Arab state, a senior Scale AI executive told Reuters on Sunday.

"(This deal) can be a blueprint for other governments around the world, and it allows us to really commit in a way that I think could drive impact even faster," said Trevor Thompson, global head of growth at the San Francisco, California-based company.

The deal will allow Qatar's government to adopt tools such as predictive analytics, automation and advanced data analysis in an effort to streamline operations, said a statement by Qatar's communications and information technology ministry.

Scale AI will develop more than 50 possible uses of artificial intelligence (AI) for Qatar's government over the next five years, the statement added.