Mastercard’s revenue climbs 36%, T-Mobile’s net income rises by 789%

Mastercard Incorporated (NYSE: MA) revenue grew by 36% YoY in the second quarter, while T-Mobile US, Inc.’s (NASDAQ: TMUS) net income jumped 789% YoY in the June quarter, the companies said in their earnings report on Thursday.  

The MA stock surged 2.11% to US$391.52 at 9:52 am ET, while TMUS plunged 1.82% to US$142.00 in the aftermarket trading at 5:10 pm ET.

Mastercard collected revenue of US$4.5 billion, an increase of 36% YoY, boosted by earnings from its Payment Solutions section, its sole consolidated reportable operating segment.

T-Mobile’s second-quarter revenue stood at US$20 billion, up 13% year-over-year, and total service revenue increased by 10% YoY to US$14.5 billion.

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Source: Pixabay

Mastercard’s adjusted net income was US$1.9 billion, a 41% increase, and adjusted diluted earnings per share was US$1.95 compared to US$1.36 in the second quarter of 2020. 

Its operating margin year-to-date was almost flat at 53% in Q2, a slight dip of 0.7 points from the prior-year period. For the June quarter, the operating margin increased by 53.2% compared to 51.8% in 2020.  In Q2, Mastercard paid US$434 million in dividends and repurchased approximately US$4.6 million shares at the cost of US$1.7 million.

Its customers had been issued 2.9 billion Mastercard and Maestro branded cards as of June 30, 2021. Its gross dollar volume increased by 33% to US$1.9 trillion, and cross border volume increased by 58% on a local currency basis.

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On July 27, Mastercard announced its global startup engagement program ‘Start Path’ to support later-stage startups in digital assets, blockchain, and cryptocurrency. 

On the other hand, TMUS’s net income was US$978 million, a 789% growth year-over-year. Its diluted earnings per share were US$0.78, and adjusted EBITDA was US$6.9 billion.  

Its free cash flow increased by 16% to US$1.7 billion year-over-year in Q2. T-Mobile’s net customers increased to US$1.4 million, and the total customer count increased to 104.8 million.

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Its postpaid net customers totaled 1.3 million, postpaid phone net customers were 627 thousand, postpaid other net customer additions were 649 thousand, and prepaid net customers were 76 thousand in Q2.

Outlook for the consecutive quarter for postpaid net customers additions is expected to be between 5.0 million and 5.3 million, against the prior guidance of 4.4 million to 4.9 million. Free cash flow is expected to be between US$ 5.2 billion and US$ 5.5 billion.       

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.