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Mastercard Suspends 2020 Outlook Due To COVID-19 Impact

Mastercard said that it has suspended 2020 outlook for both net revenue and operating expense growth, due to the speed with which the COVID-19 situation is developing and the unknown duration and severity of the event.

But, the long-term fundamentals of its business remain strong, the company said.

On a non-GAAP, currency-neutral basis, excluding acquisitions, the company now expects first quarter net revenue growth to be in the low-single-digits range.

The company has also seen some shifts in foreign exchange rates and anticipates that the currency impact will be about a 2 percentage point headwind to net revenue growth in the first quarter.

The company noted that it has seen further deterioration in its cross-border, switched volume and switched transaction metrics, as the impact of the virus rapidly expanded around the globe. But, revenue related to its services lines has held up reasonably well.

The company noted that it has taken several actions to protect employees, including asking many employees to work from home, establishing split working schedules, restricting business travel and creating a special paid leave program for those impacted by COVID-19.

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