Mastercard revenues to be hit by Covid-19

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Mastercard recently announced that its net revenue in the first quarter will take a hit of between 2% and 3% over its previous forecast. This if the coronavirus outbreak persists through the quarter.

The company’s shares were down nearly 3% in extended trading.

The company now expects revenue growth between 9% and 10% in the current quarter as the virus impacts travel and e-commerce across borders.

The credit card issuer also expects that net revenue growth on a year-over-year basis in 2020 would be at the low end of the low-teens range if the impact of the virus is limited to the first quarter only.

The company had earlier forecast net revenue growth in low teens for 2020 while expecting revenue to grow in low double digits for the first quarter.

The virus has killed 2,442 and infected 76,936 people so far in China, and slammed the brakes on the world’s second-largest economy.

The Covid-19 virus has surged into a global pandemic, forcing the postponement of the world mobile congress, the Facebook F8 event and Facebooks global marketing event.

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