The net profit of the US Visa Inc (NYSE: V), the operator of the world's largest payment system, has fallen in the third fiscal quarter by 76%, or 4 times, to $ 412 million, or $ 0.17 per share of A class compared to $ 1.7 billion, or $ 0.69 per share, for the same period of the previous year, is said in a press release.
The indicator decreased due to the significant non-recurring costs associated with the acquisition of Visa Europe Ltd. - more than $ 2.2 billion.
Visa profit, excluding one-off items, amounted to $ 0.69 per share, beating the average forecast of experts polled by Thomson Reuters - $ 0.66 per share.
The company's revenue increased by 3.2% to $ 3.63 billion with an average market forecast of $ 3.65 billion.
The volume of payments on Visa cards in the past quarter rose 10% to $ 1.3 trillion, the amount of cross-border payments increased by 5%.
In total in April-June, the company processed 19.8 billion transactions with cards, which is 10% more than the previous year.
"Little has changed in the global economic environment, and cross-border transactions are constrained by the strengthening of the dollar, however, consumer spending in domestic markets around the world remain high and flexible," - says VISA CEO, Charlie Scharf.
The company also announced the launch of a new share repurchase program worth $ 5 billion and the creation of partnerships with PayPal, a leading payment service.
In the past quarter, Visa repurchased its own shares for $ 1.7 billion.
In view of the new program, approved by the Board of Directors, there is $ 7.3 billion in the company's possession, allocated for share buybacks.
As part of the partnership agreement with PayPal, consumers will be able to transfer funds from PayPal and Venmo to their bank account through a Visa card. This partnership is expected to increase the number of transactions on Visa cards.
Visa Inc. – is a global payment system that provides access to the electronic payment card holders, trade and service enterprises, financial institutions and governments in more than 200 countries.