Visa, the biggest electronic payments network in the world, reported FY third quarter income of $729m or $0.97 per share, which is about 73% higher than last year’s income. Excluding the impact from the sale of the company’s stake in VisaNet do Brasil, income would be lower at $507m or an EPS of $0.67, which surpasses expectations of $0.64 or the $0.59 from last year of the same period.
The firm also reported volume growth in payments of -7% due to consumers spending less. However, total Visa cards increased by 6% to more than 1.7bn and total processed transations increased 8% after more consumers used their cards for purchase instead of cash and/or cheques.
Visa, in its updated outlook through 2010, expects adjusted operating margin to be in the low 50% range. It also affirmed previous outlook of an annual revenue growth of high single digits for 2009 and at the lower end of the range 11 and 15% for next year.
CEO Joseph Saunders said in the earnings release: “Throughout this challenging time, the resiliency of our debit products and our credit products overseas, continue to exemplify the resiliency and stability of our business model.”
He added: “While we cannot predict the specific timing of a global economic turnaround, we remain committed to doing our part in delivering balanced growth to our shareholders over the long term.”
Care to look further into the results? Click HERE for the official release.