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Mastercard reported a net income of $3.3bn for Q4 2024, up 22% on a currency-neutral basis, from $2.8bn in Q4 2023.
The surge in net income is attributed to a strong economy that fuelled higher consumer spending during the holiday season.
This ongoing spending trend is further supported by a robust labor market and wage growth, which have contributed to heightened consumer confidence.
Moreover, retailers introduced targeted discounts to attract price-conscious shoppers throughout the crucial holiday period from Thanksgiving to Christmas.
Diluted EPS for Q4 2024 increased by 25%, reaching $3.64bn.
For the fiscal year 2024, Mastercard's net income totalled $12.9bn, a 17% increase on a currency-neutral basis, from $11.2bn in 2023. For the fiscal year 2024, diluted EPS rose by 19%, totalling $13.89bn.
Mastercard has focused on differentiating itself by expanding the range of services it provides beyond its global payment network. This strategy contributed to a 16% increase in net revenue, on a currency-neutral basis, reaching $7.5bn in Q4 2024 against $6.5bn in the previous year's corresponding quarter.
In the fourth quarter of 2024, Mastercard reported a 12% increase in its gross dollar volume, which reflects the total value of transactions processed on the company’s platform.
Additionally, the company’s cross-border volume, which measures spending on cards used outside their country of issuance, surged by 20% during the same period.
The company’s chief financial officer Sachin Mehra attributed this growth in cross-border volume to a rise in travel spending as well as increased cryptocurrency purchases.
Its net revenue for the full year 2024 saw a 13% rise on a currency-neutral basis, reaching $28.2bn.
Operating income for Q4 2024 increased by 19%, reaching $3.9bn.
For the full year, operating income grew 13% to $15.6bn.
During Q4 2024, Mastercard repurchased 6.5 million shares at a cost of $3.4bn and paid dividends totalling $606m. For the full year, the company repurchased 23 million shares at a cost of $11bn and paid $2.4 billion in dividends.
Mastercard CEO Michael Miebach said: “Our diverse capabilities in payments and services and solutions – including the acquisition of Recorded Future this quarter – set us apart and position us well for long term growth as we outlined at our Investor Day. That value is seen in the continued momentum of our new and expanded wins.”
"Mastercard reports 22% increase in net income for Q4 2024 " was originally created and published by Electronic Payments International, a GlobalData owned brand.