Visa earnings rise 14pc

27 Oct 2011

Visa cardholders using their credit and debit cards more often boosted Visa’s fiscal fourth-quarter profit by 14pc, the payments network reported.

The company reported earnings of US$880m, or US$1.27 a share, for the three months ended 30 September. The same period a year ago saw earnings of US$774m, or $1.06 a share.

There were 5pc fewer shares outstanding in the most recent quarter, the result of company buybacks, which had the effect of increasing earnings per share, The New York Times reported.

Revenue increased 13pc to US$2.38bn, up from US$2.12bn a year ago.

For the full fiscal year, Visa earned US$3.65bn, or US$5.18 a share, up from US$2.97bn, or US$4.03 a share, for its fiscal 2010.

“Visa continues to deliver strong results, with fourth quarter and full year performance reflecting a business that is both resilient and flexible enough to adapt and flourish in a changing business environment,” said Joseph Saunders, chairman and CEO of Visa Inc.

“Throughout the quarter and the year, we have been diligent in our efforts to grow our core business, while successfully unlocking new revenue opportunities through strategic investments, both in our core business and into innovations that will ensure our foundation for future growth remains strong. This foundation will allow us to effectively drive transactions, pursue global growth in new markets and provide our clients with innovative ways to provide safe electronic payments to their customers.”

Visa said it processed 13bn transactions during the quarter, up 9pc from last year.

Worldwide, Visa card holders spent $1.55trn on their cards and for cash advances, with debit outpacing credit. That was up 17pc from last year’s fourth quarter.