Mastercard cuts outlook as coronavirus hits travel
By Sean Farrell
Date: Tuesday 25 Feb 2020
(Sharecast News) - Mastercard has cut its financial outlook after the coronavirus reduced international travel and growth in internet spending.
The payments company said revenue would rise by 9-10% in the first quarter - 2-3 percentage points lower than guidance published in January - if current trends continue to the end of the quarter.
If the virus's impact is limited to the first quarter Mastercard's annual revenue growth will be at the low end of the "low-teens range" it previously guided towards, the company said.
In an update on the effects of the virus, Mastercard said: "The fundamentals of our business remain strong ... However, cross-border travel, and to a lesser extent cross-border e-commerce growth, is being impacted by the coronavirus ... There are many unknowns as to the duration and severity of the situation and we are closely monitoring it."
Mastercard receives a fee for every payment made through its systems globally. Coronavirus has reduced travel to and from China, whose citizens can use the Mastercard network when abroad. It is the latest company to warn about the impact of the virus, which is affecting manufacturing, supply chains and services as it spreads from China.
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