"If there's any doubt whether people are willing to pay $900 for a premium credit card, just look at the latest quarterly results for American Express: The credit card issuer reported Friday that it beat third-quarter earnings estimates and raised its full-year outlook. It's been a month since American Express refreshed its Platinum line of credit cards, raising the annual fee by $200 to $895, and that change is already paying dividends."
"American Express reported that revenue rose 11% from a year ago to a record $18.4 billion in the third quarter, driven largely by a 9% increase in card member spending. Earnings per share came in at $4.14, higher than the consensus of analyst estimates. American Express Platinum cardholders-both individuals and businesses-account for about $530 billion in annual billings, according to the company, and the recent refresh has helped drive additional revenue."
American Express reported third-quarter revenue of $18.4 billion, an 11% increase year-over-year, driven by a 9% rise in card member spending. Earnings per share were $4.14, above analyst consensus, and the company raised its full-year outlook. The Platinum card refresh increased the annual fee to $895 and generated strong demand, with more than 500,000 requests for the new pocket mirror card and U.S. Platinum account acquisitions doubling compared to pre-refresh levels. Platinum cardholders account for about $530 billion in annual billings. The refresh also produced a 45% increase in new high-yield savings accounts from these members and record Amex travel bookings.
Read at Fast Company
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