Author KEN SWEET, AP Business Writer
NEW YORK (AP) – The profit of the payment processing giant Visa increased by 21% in the first three months of the year, due to a large jump in spending in the eponymous network of credit and debit cards of the company.
The San Francisco-based company reported on Tuesday that it earned $ 3.65 billion, or $ 1.70 per share, in its second fiscal quarter, which ended March 31. That was more than $ 3.03 billion, or $ 1.38 per share in the same period last year.
Her earnings, adjusted to exclude one-off items, were $ 1.79 per share. The results exceeded analysts’ expectations that Visa would earn $ 1.65 per share on an adjusted basis, FactSet reports.
Visa’s results were largely due to a significant increase in the amount of money and the number of transactions that went through its payment network. The company processed $ 3.384 trillion in payments in its network in the last quarter, up 17% from a year earlier. Visa earns a commission for every transaction that uses its network.
While Visa said it noticed a slowdown in transactions earlier this year due to the spread of the omicron version of the coronavirus, payments recovered quickly in the later part of the quarter.
“Although the geopolitical environment remains uncertain, we expect further growth driven by a strong recovery in travel and enabling traditional and newer ways of global payments,” Al Kelly, CEO and President of Visa, said in a statement.
Visa shares rose by more than 5% after business hours after earnings trading. Visa shares have fallen about 7% by 2022 compared to a 12.4% drop in the S&P 500 index to date.
In recent years, the company has benefited from a global shift in consumer behavior towards digital payments, especially during a pandemic. Consumers buy more goods and services online, which often requires the use of a credit or debit card. As Visa and its biggest competitor Mastercard predominate in the consumption of credit and debit cards, this was directly reflected in their result.
In a conversation with investors about earnings, Kelly found that more than half of all personal transactions in Target stores now use a touch payment at the checkout.
Visa reported a cost of $ 60 million in connection with the closure of operations in Russia. Like many global companies, Visa has announced that it is withdrawing from Russia due to the Kremlin’s invasion of Ukraine.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, transcribed or redistributed.
“Alcohol scholar. Hardcore tv junkie. Wannabe bacon enthusiast. Twitter fanatic. Subtly charming travel guru. Pop culture specialist.”