Mastercard says its first-quarter revenue is likely to take a hit due to the Coronavirus emergency

on Feb 25, 2020
Updated: Mar 11, 2020
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  • Mastercard says its first-quarter revenue is likely to take a hit due to the Coronavirus emergency.
  • Mastercard now estimates a 9% to 10% growth in its quarterly revenue.
  • Mastercard plans on expanding its European tech hub to South Dublin.

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The American multinational financial services corporation, Mastercard, had previously given upbeat guidance for the fiscal first quarter in 2020. Owing to the recent outbreak of Coronavirus in China and how it is hurting spending and business operations across the globe, the company announced on Monday that its previous forecast is likely to take a 2% to 3% hit in terms of net revenue if the health emergency persists in the upcoming months.

Mastercard Now Estimates A 9% to 10% Growth In Its Quarterly Revenue

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With the rapid spread of Coronavirus keeping the travel, tourism, and e-commerce industries under pressure around the globe, Mastercard now estimated a 9% to 10% growth in its quarterly revenue. Known globally as the credit card company, Mastercard also extended its guidance for fiscal 2020. The company said that if the health emergency is contained within the first quarter, its year over year increase in net revenue in 2020 is expected to print at the low end of the lower teens range.

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In its previous guidance, the company had anticipated its revenue to gain by low double digits in the first quarter. For fiscal 2020, the company had forecast low teens range for the increase in its net revenue.

The Coronavirus is slowly turning into a pandemic with around 80,000 people infected worldwide while the death toll is reaching 2,500 so far. Being the second-largest economy of the world, China’s crisis, as per the experts, is likely to echo in the global economic scenario in 2020. Mastercard itself is in a huge list of businesses from across the globe that have anticipated massive hits to financial performance ascribed to the health emergency.

Mastercard’s Performance In The Stock Market

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Following the announcement, Mastercard was reported trading 3% lower in after-hours trading on Monday. At the time of writing, Mastercard is trading at around $325 per share in the stock market that marks an around 8% growth in 2020 so far. Its performance in 2019 remained largely upbeat with around 60% annual gain. Mastercard opened at around $186 per share in the stock market in January 2019 but closed the year significantly higher at $298 in December.

In separate news, Mastercard recently declared that it wishes to introduce its European tech hub in South Dublin. The expansion, as per the financial services company, will create around 1,500 jobs in the next 3 to 5 years.

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