Company Report

Mastercard’s Fourth-quarter net revenue of $4.1 billion, a decrease of 7%

Mastercard Incorporated (NYSE: MA) announced financial results for the fourth-quarter and full-year 2020.

The following additional details are provided to aid in understanding Mastercard’s fourth-quarter 2020 results, versus the year-ago period:

Net revenue decreased 7%, on both an as reported and a currency-neutral basis, which reflects the impacts of COVID-19 and includes a 1 percentage point benefit from acquisitions. The decline was driven by the impact of the following factors:

◦ Cross-border volume decline of 29% on a local currency basis.
◦ Rebates and incentives were flat, but grew 1% on a currency-neutral basis.
◦ These decreases to net revenue were partially offset by:
◦ Gross dollar volume growth of 1%, on a local currency basis, to $1.7 trillion.
◦ Switched transactions growth of 4%.
◦ Other revenues growth of 16%, or 17% on a currency-neutral basis. This includes a 1 percentage point increase due to acquisitions. The remaining growth was driven primarily by the company’s Cyber & Intelligence and Data & Services solutions.

The following additional details are provided to aid in understanding Mastercard’s full-year 2020 results, versus the year-ago period:

Net revenue decreased 9%, or 8% on a currency-neutral basis, which reflects the impacts of COVID-19 and includes a 1 percentage point benefit from acquisitions. Gross dollar volume of $6.3 trillion was flat on a local currency basis. The net revenue decline was driven by the impact of the following factors:

◦ Cross-border volume decline of 29% on a local currency basis.
◦ Rebates and incentives growth of 3%, or 4% on a currency-neutral basis, primarily due to new and renewed deals.
◦ These decreases to net revenue were partially offset by:
▪ Switched transactions growth of 3%.
▪ Other revenues growth of 14%, or 15% on a currency-neutral basis. This includes a 3 percentage point increase due to acquisitions. The remaining growth was driven primarily by the company’s Cyber & Intelligence and Data & Services solutions.

Source: investor.mastercard.com

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