Business & Investment

Visa exceeds profit estimates for travel and online spending boom By Reuters

© Reuters. File Photo: The picture in this photo, taken on September 6, 2017, shows a Visa credit card on your computer keyboard. REUTERS / Philippe Wojazer / Illustration

By Noor Zainab Hussain and Sweta Singh

(Reuters)- Visa Inc Quarterly earnings of (NYSE :) exceeded Wall Street expectations on Tuesday. This is because the recovery of travel and the improvement of the global economic situation helped increase the sales volume of the world’s largest payment processors.

However, cross-border travel is still well below pre-pandemic levels, and regions such as the Asia-Pacific region remain closed, Visa said.

“Our business has been on a recovery track for the past three to four quarters, but it hasn’t returned to normal globally yet,” Chief Financial Officer Basant Prabu told analysts.

“When to resume in major Asian countries, both domestically and cross-border travel, is an important variable.”

However, as a sign of resilience, debit and e-commerce activity exceeded this quarter, despite in-store shopping recovering and credit card volume recovering.

According to Refinitiv data, Visa’s net income rose to $ 1.65 per class A share in the fourth quarter ending September 30, surpassing analysts’ estimates of $ 1.54 per share.

In the United States, the resumption of the economy has increased widespread demand for travel and shopping from consumers who have been stuck indoors for more than 18 months. According to the visa, travel from the United States to Mexico remained strong.

The company forecasts net sales for the first quarter of 2022 to be in the late teens, but reported cross-border totals increased 38% on a constant dollar basis year-over-year. ..

The visa talked about assumptions for the purposes of internal planning, saying that the recovery of cross-border travel will continue until fiscal year 2022 and will reach 2019 levels in the summer of 2023.

Total payments increased 17% on a constant dollar basis year-over-year, while the number of transactions processed by Visa increased 21% to 45.3 billion.

American Express The profit of (NYSE :) also exceeded last week’s estimate. This is due to the significant recovery in overall spending due to increased card usage.

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Visa exceeds profit estimates for travel and online spending boom By Reuters Visa exceeds profit estimates for travel and online spending boom By Reuters

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