In Depth

Visa: Q2 Revenues Rise 7% As Profit Jumps 26%

Visa missed analysts’ projections for fiscal second quarter revenues, but earned a 26 percent increase in profits as spending on credit and debit cards remained strong.

Driven by solid growth in service, data-processing and international-transaction revenues, Visa Inc. on April 24 reported total operating revenues of $3.16 billion for the fiscal second quarter ended March 31, up 6.8 percent from $2.96 billion during the same period last year but below analyst projections by $30 million. Net income, however, rose 26 percent, to $1.6 billion from $1.27 billion.

Total processed transactions over VisaNet totaled 15.4 billion during the quarter, an 11% increase year over year. Data-processing revenues rose 7%, to $1.2 billion. International transaction revenues, which are driven by cross-border volume, grew 5%, to $871 million. Other revenues, which include the Visa Europe licensing fee, were $183 million, an increase of 5% from a year earlier, Visa said. CyberSource volume totaled 186 billion transactions, up 16 percent.

Total Visa product payments sales volume globally reached $1.11 trillion, up 7.8 percent from $1.03 trillion. Transaction volume globally rose 1.8 percent, to a total of 18.83 billion from 18.49 billion.

“Our underlying business drivers remained strong during the fiscal second quarter with payments volume continuing to grow at solid levels,” Charlie Scharf, Visa CEO, said in the company’s 8K filing with the U.S. Securities and Exchange Commission. “As expected, softer net revenue growth was impacted by a strengthening U.S. dollar and difficult year-over-year comparisons due to non-recurring items.”

For U.S. credit programs, payments volume totaled $269 billion, up 10.2 percent from $244 billion during the same period last year. Payments transaction volume totaled 3.15 billion, up 10.9 percent from 2.84 billion. Cash volume remained unchanged at $12 billion, as did cash transaction volume at 14 million.

Through Dec. 31, there were 216 million credit card accounts, up 5.9 percent from 204 million a year earlier. Total U.S. credit cards were 288 million, up 4 percent from 277 million.

For International credit programs, payments volume totaled $418 billion, up 6.1 percent from $394 billion. Payments transaction volume totaled 5.05 billion, up 10.3 percent from $4.58 billion. Cash volume totaled $46 billion, down 4.2 percent from $48 billion. Cash transaction volume fell 2.8 percent, to 176 million from 181 million.

Through Dec. 31, there were 472 million non-U.S. credit card accounts, up 2.6 percent from 460 million a year earlier. Total non-U.S. credit cards were 531 million, up 2.5 percent from 518 million.

For U.S. debit programs, payments volume totaled $305 billion, up 6.6 percent from $286 billion. Payments transaction volume totaled 7.99 billion, up 6.3 percent from 7.52 billion. Cash volume totaled $103 billion, up 5.1 percent from $98 billion. Cash transaction volume rose 3.5 percent, to 861 million from 832 million.

Through Dec. 31, there were 349 million U.S. debit card accounts, up 5.4 percent from 331 million a year earlier. Total U.S. debit cards were 439 million, up 3.8percent from 423 million.

For non-U.S. debit programs, payments volume totaled $116 billion, up 13.7 percent from $102 billion. Payments transaction volume totaled 2.65 billion, up 20.5 percent from 2.2 billion. Cash volume totaled $459 billion, down 1.5 percent from $466 billion. Cash transaction volume rose 7 percent, to 2.76 billion from 2.58 million.

Through Dec. 31, there were 885 million non-U.S. U.S. debit card accounts, up 8.9 percent from 813 million a year earlier. Total non-U.S. debit cards were 970 million, up 8.6 percent from 893 million.

 

 

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