February 24, 2020 / 11:35 PM / a month ago

Mastercard says coronavirus to hit first-quarter revenue

FILE PHOTO: Mastercard Inc. credit cards are displayed in this picture illustration taken December 8, 2017. REUTERS/Benoit Tessier/Illustration/File Photo

(This February 24 story corrects to say revenue to be hit between “2 and 3 percentage points” not “2% and 3%” in first paragraph)

(Reuters) - Mastercard Inc (MA.N) said on Monday its net revenue in the first quarter will likely take a hit of between 2 and 3 percentage points 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.

Reporting by Neha Malara in Bengaluru; Editing by Shailesh Kuber

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