Visa Inc.(V) released their quarterly earnings this week, reporting a 23% drop in quarterly profit for the quarter ending June 30, as consumer spending remained tight driven by unemployment caused by the COVID-19 imposed lockdown. Net income dropped $2.37 billion, or $1.07 per Class A share, lower than $3.10 billion, or $1.37 per Class A share, a year earlier.
The payment giant reported a decrease of 10% in total payments volume, and the number of process transactions declined 13% in comparison to a year earlier. Cross-border volume decreased by 37%, depicting a fall in international travel. Net revenue dropped 17% to $4.84 billion, versus analysts estimate of $4.83 billion.
Visa’s earnings report marked the first year-over-year decline in adjusted net income and quarterly revenue since the company went public in 2008 and becoming the world’s largest payment network.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Their 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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