Visa's Profit Beats Viewss as Card Users Spend More

Earnings Reuters


Visa Inc (V), the world's largest credit and debit card company, said its revenue growth would slow this quarter due to a strong U.S. dollar, sending the company's shares down about 3 % in extended trading.

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Visa, which also reported a 26 % rise in quarterly profit, said on a post-earnings conference call that it expected third-quarter revenue growth to be in "mid-single digits" in %age terms.

The company's revenue growth slowed to 7 % in the second quarter ended March 31 from 11 % in the first quarter.

Total payments volume grew about 12 % on a constant dollar basis to $1.1 trillion in the second quarter, but cross-border volume rose just 8 % as the U.S. currency strengthened.

Visa and rival Mastercard Inc <MA.N> have been helped by increasing consumer spending in the United States and a shift to plastic payments in emerging markets.

Total transactions processed on Visa's network rose 11 % in the second quarter.

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Net income attributable to the company rose to $1.60 billion, or $2.52 per Class A share, from $1.27 billion, or $1.92 per Class A share, a year earlier.

Visa earned $2.20 per share, excluding a tax benefit of $218 million in the quarter.

Total operating revenue increased to $3.16 billion from $2.96 billion.

Analysts on average had expected a profit of $2.18 per share on revenue of $3.19 billion, according to Thomson Reuters I/B/E/S.

Shares of Visa, which has a market value of $132.31 billion, closed at $209.40 on the New York Stock Exchange on Thursday. The stock has fallen 6 % so far this year.

(Reporting by Aman Shah in Bangalore; Editing by Savio D'Souza and Kirti Pandey)