Mastercard’s first-quarter revenue grew by 12% to $8.4bn, ignoring currency movements, landing just ahead of market forecasts. Within that, value-added services led the way with 18% growth. Payment network revenues were up 8%, with purchase volumes up in all territories.
Underlying operating profit grew 13% to $5.1bn (3% ahead of consensus), as topline growth outpaced costs.
Profit growth and improved cash management saw free cash flow increase from $2.3bn to $2.8bn. Net debt at the end of March came to $11.1bn.
Share buybacks and dividends for the quarter came to $4.0bn and $0.8bn, respectively.
Full-year underlying revenue guidance has been raised at the top end, with growth now expected to be in the high single digits to low teens. Operating expense guidance was also nudged higher, and is now expected to grow by low double digits.
The shares fell 4.1% following the announcement.
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Mastercard key facts
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