Visa (V) reported strong quarterly earnings as domestic spending bounced back to pre-pandemic levels and international travel is also on the road to recovery as vaccinations rise and economies reopen. Payment giants are witnessing an increase in volumes from the coronavirus-induced slump as travel and entertainment spending speed up. Visa reported a 34% jump in third-quarter payment volumes on a constant dollar basis, while the number of transactions processed surged 39%.
“In our domestic businesses, we are pretty much back to where we were, had the pandemic never happened. The one area of our business that is still not back to where it was is cross-border travel. That is the next stage of recovery,” stated Chief Financial Officer Vasant Prabhu.
Quarter Highlights:
- Cross-border volumes climbed 47% on a constant currency basis in the quarter.
- Total revenue soared 27% to $6.13 billion.
- Net income also increased to $2.58 billion in the quarter ending June 30 from $2.37 billion a year earlier.
- Visa reported a profit of $1.49 per share, compared with estimates of $1.35, an adjusted basis.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Its mission is to connect the world through the most innovative, reliable, and secure payment network – enabling individuals, businesses, and economies to thrive. Their advanced global processing network, VisaNet, provides secure and reliable payments around the world and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying its brand, products, people, network, and scale to reshape the future of commerce. To learn more about Visa (V) and to track its ongoing progress please visit the Vista Partners Visa (V) Coverage Page.)
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