You are here: Home » International » News » Companies
Business Standard

Visa profit beats quarterly estimates on higher travel, online spending

The world's largest payments processor reported transactions rose 21% to $47.6 billion during the quarter compared with a year earlier

Visa | payments

Reuters  |  NEW YORK 

Credit card buys seen 8% lower in Apr-June quarter, say analysts

Inc beat Wall Street's quarterly estimates on Thursday as more travel and e-commerce drove an increase spending volumes.

While travel spending has stalled since late December due to the Omicron variant of the coronavirus, executives said they believe the recovery will resume and net revenue will grow in the second fiscal quarter this year.

"The upside is going to come from the continued recovery of travel and the affluent customer getting back in the mix of spending at the levels they were pre-pandemic," Chairman and Chief Executive Alfred Kelly said on a call with analysts.

The world's largest processor reported transactions rose 21% to $47.6 billion during the quarter compared with a year earlier.

Cross-border volumes rose 40%, marked by a steep increase in travel between September and November when the U.S. border and most of the borders within Europe reopened.

Visa's chief financial officer, Vasant Prabhu, said that even if countries reinstate border closures this year due to new COVID-19 variants, spending appears to rebound quickly when consumers can travel.

"(Open borders) can have a sizable and immediate impact," Prabhu said. "Our assumption is for steady improvement through the year."

Shares rose by as much as 2.5% in after-hours trading following the company's results.

Net revenue rose to $7.1 billion in the three months ended Dec. 31, an increase of 24% over the prior year.

Visa reported profit of $3.9 billion, or $1.81 per share.

Analysts, on average, had estimated net income of $1.70 per share, according to IBES data from Refinitiv.

Rival card Mastercard Inc and American Express Co also reported that they beat quarterly profit estimates this week, powered by renewed consumer spending on travel, dining and shopping.

(Reporting by Mehnaz Yasmin in Bengaluru and Elizabeth Dilts Marshall in New York;Editing by Diane Craft and Matthew Lewis)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, January 28 2022. 06:25 IST