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.



Saudi Communications Minister Strengthens Global Partnerships in Technology, AI, Space

The meetings align with the Kingdom’s broader efforts to advance global partnerships in innovation, strengthen AI-driven investments, and develop high-growth sectors in line with Saudi Vision 2030. (SPA)
The meetings align with the Kingdom’s broader efforts to advance global partnerships in innovation, strengthen AI-driven investments, and develop high-growth sectors in line with Saudi Vision 2030. (SPA)
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Saudi Communications Minister Strengthens Global Partnerships in Technology, AI, Space

The meetings align with the Kingdom’s broader efforts to advance global partnerships in innovation, strengthen AI-driven investments, and develop high-growth sectors in line with Saudi Vision 2030. (SPA)
The meetings align with the Kingdom’s broader efforts to advance global partnerships in innovation, strengthen AI-driven investments, and develop high-growth sectors in line with Saudi Vision 2030. (SPA)

Saudi Minister of Communications and Information Technology Abdullah Alswaha held high-level meetings with senior executives from major global companies at the Future Investment Initiative in Miami (FII PRIORITY Miami 2025) to bolster partnerships in technology, artificial intelligence (AI), investment, and the space sector, while promoting entrepreneurship in the Kingdom.

Alswaha met with NEA CEO Tony Florence to discuss strategies for supporting tech entrepreneurs and boosting startup investment, which would strengthen Saudi Arabia’s innovation ecosystem, reported the Saudi Press Agency on Saturday.

In a discussion with Oracle CEO Safra Catz, he explored avenues to expand cooperation in cloud computing and AI, focusing on strengthening digital infrastructure and advancing the Kingdom’s digital economy.

To accelerate Saudi Arabia’s ambitions in the space sector, the minister met with SpaceX President and COO Gwynne Shotwell to discuss space exploration and rocket technology collaboration.

Alswaha also conferred with SoftBank Group CEO Masayoshi Son on expanding investment partnerships in technology and AI to drive digital economic growth.

He met with Vista Equity Partners CEO Robert F. Smith to discuss enhancing technology investments, asset management, and startup empowerment, positioning Saudi Arabia as a key destination for tech investment.

The meetings align with the Kingdom’s broader efforts to advance global partnerships in innovation, strengthen AI-driven investments, and develop high-growth sectors in line with Saudi Vision 2030.