Mastercard Inc. shares were off roughly 2% in after-hours trading Tuesday after the payment-technology company offered disclosures about its exposure to Russia and Ukraine.
About 4% of Mastercard’s
net revenue during 2021 was derived from business within, into, and out of Russia, the company said in an 8-K filing released after the closing bell Tuesday. Additionally, about 2% of revenue during 2021 was related to Ukraine.
“Given the rapidly changing developments in these markets, we continue to monitor and assess the impact of current and potential future actions of governments and others on our operations, including potential balance sheet and settlement-related exposures,” the company said.
Mastercard called Russia and Ukraine “important contributors to our overall company net revenues,” though its “global business fundamentals remain strong.” The company is “working to comply with all required restrictions.”
RBC Capital Markets analyst Daniel Perlin wrote after seeing the filing that “it is difficult, in our opinion, to determine what, if any, portion of this revenue will be disrupted by the invasion,” though he thought that Mastercard’s commentary “may help investors estimate potential downside from the conflict.”
Shares of peer Visa Inc.
were also down about 2% in after-hours trading Tuesday. A spokesperson for Visa didn’t immediately respond to an inquiry about the company’s Russia and Ukraine exposure.
Mastercard shares finished Tuesday’s regular session off 4.5%. They’ve gained 12.5% over the past three months as the S&P 500
has declined 9.7%.