 "Coronavirus outbreak: After Mastercard, now PayPal expects a revenue hit")
Payments processor PayPal Holdings Inc said on Thursday it expects first-quarter revenue to be at the lower end of its previously forecast range, blaming disruptions caused by the coronavirus outbreak and sending its shares down 1.5%.
"We currently estimate the negative impact from COVID-19 to be an approximate one percentage point reduction, to PayPal's year-over-year revenue growth for the first quarter," the company said in a statement.
ALSO READ: Coronavirus LIVE: Global GDP to fall by $250 bn, says industry body
The virus, which has killed more than 2,700 and infected 78,000 people so far in China, has slammed the brakes on the world's second-largest economy. It has spread to 44 other countries, raising fears of a global pandemic.
The company, which had forecast first-quarter revenue of $4.78 billion-$4.84 billion last month, said the global spread of the virus had affected international cross-border e-commerce activity.
PayPal said it is reaffirming its first-quarter earnings per share outlook at $0.16-$0.21, and adjusted earnings of $0.76-$0.78.
On Monday, Mastercard Inc said its net revenue in the first quarter would take a hit of 2%-3% over its previous forecast if the coronavirus outbreak persists through the quarter.
Mastercard and rival Visa Inc were down about 2% in the premarket trade.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%