Visa Inc. Posts Strong Fiscal Third Quarter 2011 Earnings Results and Authorizes New $1 Billion Share Repurchase Program
7/27/2011
SAN FRANCISCO, July 27, 2011 /PRNewswire via COMTEX/ --
- GAAP quarterly net income of $1.0 billion including a non-operating gain related to the Visa Europe put option revaluation
- Adjusted quarterly net income of $883 million or $1.26 per diluted class A common share excluding the revaluation of the Visa Europe put option
- The Company authorized a new $1 billion share repurchase program
Visa Inc. (NYSE: V) today announced financial results for the Company's fiscal third quarter 2011 ended June 30, 2011. GAAP net income for the quarter, inclusive of a non-cash, non-operating gain related to the Company's revaluation of its Visa Europe put option, was $1.0 billion.
On an adjusted basis, which excludes the revaluation of the Company's Visa Europe put option, net income for the quarter was $883 million, an increase of 23% over the prior year, and diluted class A common stock earnings per share were $1.26, an increase of 29% over the prior year. The weighted-average number of diluted class A common shares outstanding was approximately 704 million. The Company's adjusted quarterly net income per class A common shares outstanding is a non-GAAP financial measure that is reconciled to its most directly comparable GAAP measure in the accompanying financial tables.
GAAP net operating revenue in the fiscal third quarter of 2011 was $2.3 billion, an increase of 14% over the prior year and driven by strong double-digit growth in service revenues, data processing revenues and international transaction revenues. Currency fluctuations contributed two percentage points of growth towards quarterly net operating revenues.
"Visa delivered another quarter of strong financial and operational performance as we benefitted from growth in global payments volume, and solid cross border and processed transaction growth," said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. "As we address the new regulatory landscape, we are prepared to deliver on our financial goals and remain an industry leading growth company in the global transactions space."
"Visa is a diverse global enterprise, with strong positions in both developed and emerging markets around the world, and we are committed to further diversifying our business and accelerating growth in key markets worldwide," said Saunders. "We are executing on our growth strategy, investing heavily in innovation and taking important steps to bring new products and solutions to our partners and consumers."
Fiscal Third Quarter 2011 Financial Highlights:
Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2011, on which fiscal third quarter service revenue is recognized, was a positive 13% over the prior year at $862 billion.
Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2011, was a positive 13% over the prior year at $941 billion.
Cross border volume growth, on a constant dollar basis, was a positive 14% for the three months ended June 30, 2011.
Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2011, were 13 billion, a positive 11% increase over the prior year.
For the fiscal third quarter 2011, service revenues were $1.1 billion, an increase of 21% versus the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues rose 12% over the prior year to $886 million. International transaction revenues, which are driven by cross border payments volume, grew 15% over the prior year to $662 million. Other revenues, which include the Visa Europe licensing fee, were $167 million, a 10% decrease over the prior year. Client incentives, which are a contra revenue item, were $448 million and represents 16% of gross revenues.
Total operating expenses on a GAAP basis were $977 million for the quarter, a 10% increase over the prior year.
Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $6.7 billion at June 30, 2011.
Visa's effective tax rate was 38% for the quarter ended June 30, 2011, excluding the revaluation of the Visa Europe put option.
Notable Events:
On June 6, 2011, the Company acquired Fundamo, a leading platform provider of mobile financial services for mobile network operators and financial institutions in developing economies, for total consideration of approximately $110 million paid with cash on hand. In addition, the Company announced a new, long-term commercial agreement with Monitise plc, a leading provider of mobile money solutions for financial institutions in more developed geographies. The combination of acquiring Fundamo and expanding the relationship with Monitise will enable Visa to deliver best-in-class mobile financial services and payments capabilities to consumers across the full spectrum of uses, geographies and mobile environments from basic services on simple handsets to more advanced services for smart phone owners.
During the quarter, the Company received regulatory approval for the sale of its 10 percent investment in Visa Vale issuer Companhia Brasileira de Solucoes e Servicos, or CBSS, to Banco do Brasil and Bradesco. This resulted in a pre-tax gain, net of transaction costs, of $85 million recognized in the investment income net line on the consolidated statements of operations. The amount of the gain net of tax was $44 million.
During the three months ended June 30, 2011, the Company repurchased approximately 13.7 million class A common shares, at an average price of $77.36 per share, for a total cost of $1.1 billion.
As announced on July 22, 2011, the Board of Directors declared a quarterly dividend in the aggregate amount of $0.15 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on September 7, 2011, to all holders of record of the Company's class A, class B and class C common stock as of August 19, 2011.
Today, the Company announces that its Board of Directors has authorized a new $1 billion class A share repurchase program. The authorization will be in place through July 20, 2012, and is subject to further change at the discretion of the Board.
Financial Outlook:
Visa Inc. updates its financial outlook for the following metric for 2011:
- Capital expenditures: Moderately above $300 million.
Visa Inc. affirms its financial outlook for the following metrics through 2011:
- Annual net revenue growth: 11% to 15% range;
- Client incentives as a percent of gross revenues: top end of the 16% to 16.5% range;
- Marketing expenses: Less than $900 million;
- Annual operating margin: About 60%;
- GAAP tax rate: 36.5% to 37% range, excluding the revaluation of the Visa Europe put option;
- Annual diluted class A common stock earnings per share growth of greater than 20%; and
- Annual free cash flow in excess of $3 billion.
Visa Inc. affirms its financial outlook for the following metrics through 2012:
- Annual net revenue growth: high single to low double digit range; and
- Annual diluted class A common stock earnings per share growth: mid to high teens range.
Fiscal Third Quarter 2011 Earnings Results Conference Call Details:
Visa's executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) today to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at http://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 30 days. Investor information, including supplemental financial information, is available on Visa Inc.'s Investor Relations website at http://investor.visa.com.
About Visa
Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks--VisaNet--that is capable of handling more than 20,000 transaction messages a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com.
Forward Looking Statements:
This press release contains forward--looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by the terms "expect," "will," "continue" and similar references to the future. Examples of such forward--looking statements include, but are not limited to, statements we make about gross and net revenue, client incentive payments, expenses, operating margin, tax rate, earnings per share, capital expenditures, free cash flow and the growth of those items.
By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are neither statements of historical fact nor guarantees of future performance and (iii) are subject to risks, uncertainties, assumptions and changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements because of a variety of factors, including the following:
- the impact of new laws, regulations and marketplace barriers, particularly the rules recently promulgated under the Wall Street Reform and Consumer Protection Act, including:
- rules expanding issuers' and retailers' choice among debit payment networks;
- rules capping debit interchange rates;
- the spread of regulation of debit payments to credit and other product categories;
- the spread of U.S. regulations to other countries;
- rules about consumer privacy and data use and security; and
- designation as a systemically important payment system;
- developments in current or future disputes and our ability to absorb their impact, including interchange; currency conversion; and tax;
- macroeconomic factors such as:
- global economic, political, health, environmental and other conditions;
- cross-border activity and currency exchange rates; and
- material changes in our clients' performance compared to our estimates;
- industry and systemic developments, such as:
- competitive pressure on client pricing and in the payments industry generally;
- bank and merchant consolidation and their increased focus on payment card costs;
- disintermediation from the payments value stream through government actions or bilateral agreements;
- adverse changes in our relationships and reputation;
- our clients' failure to fund settlement obligations we have guaranteed;
- disruption of our transaction processing systems or the inability to process transactions efficiently;
- rapid technological developments;
- account data breaches and increased fraudulent and other illegal activity involving our cards; and
- issues arising at Visa Europe, including failure to maintain interoperability between our systems;
- costs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding stock;
- loss of organizational effectiveness or key employees;
- failure to integrate successfully CyberSource, PlaySpan, Fundamo or other acquisitions;
- changes in accounting principles or treatment; and
the other factors discussed in our most recent Annual Report on Form 10--K. You should not place undue reliance on such statements. Unless required to do so by law, we do not intend to update or revise any forward--looking statement, because of new information or future developments or otherwise.
Contacts: Investor Relations: Jack Carsky or Victoria Hyde-Dunn, 415-932-2213, [email protected] Media Relations: Will Valentine, 415-932-2564, [email protected]
|
VISA INC. |
||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
|
(UNAUDITED) |
||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||
|
2011 |
2010 |
2011 |
2010 |
|||||
|
(in millions, except per share data) |
||||||||
|
Operating Revenues |
||||||||
|
Service revenues |
$ 1,055 |
$ 873 |
$ 3,156 |
$ 2,585 |
||||
|
Data processing revenues |
886 |
792 |
2,553 |
2,285 |
||||
|
International transaction revenues |
662 |
574 |
1,916 |
1,671 |
||||
|
Other revenues |
167 |
183 |
484 |
546 |
||||
|
Client incentives |
(448) |
(393) |
(1,304) |
(1,139) |
||||
|
Total operating revenues |
2,322 |
2,029 |
6,805 |
5,948 |
||||
|
Operating Expenses |
||||||||
|
Personnel |
363 |
285 |
1,071 |
869 |
||||
|
Network and processing |
91 |
103 |
251 |
306 |
||||
|
Marketing |
251 |
277 |
631 |
731 |
||||
|
Professional fees |
84 |
77 |
222 |
178 |
||||
|
Depreciation and amortization |
74 |
63 |
211 |
187 |
||||
|
General and administrative |
114 |
87 |
319 |
242 |
||||
|
Litigation provision |
- |
- |
6 |
(41) |
||||
|
Total operating expenses |
977 |
892 |
2,711 |
2,472 |
||||
|
Operating income |
1,345 |
1,137 |
4,094 |
3,476 |
||||
|
Other Income (Expense) |
||||||||
|
Interest expense |
(11) |
(13) |
(19) |
(57) |
||||
|
Investment income, net |
88 |
1 |
107 |
29 |
||||
|
Other |
121 |
(3) |
120 |
(5) |
||||
|
Total other income (expense) |
198 |
(15) |
208 |
(33) |
||||
|
Income before income taxes |
1,543 |
1,122 |
4,302 |
3,443 |
||||
|
Income tax provision |
539 |
406 |
1,534 |
1,252 |
||||
|
Net income including non-controlling interest |
1,004 |
- |
716 |
2,768 |
2,191 |
|||
|
Loss attributable to non-controlling interest |
1 |
- |
2 |
1 |
||||
|
Net income attributable to Visa Inc. |
$ 1,005 |
$ 716 |
$ 2,770 |
$ 2,192 |
||||
|
Basic earnings per share |
||||||||
|
Class A common stock |
$ 1.43 |
$ 0.97 |
$ 3.90 |
$ 2.97 |
||||
|
Class B common stock |
$ 0.70 |
$ 0.56 |
$ 1.97 |
$ 1.72 |
||||
|
Class C common stock |
$ 1.43 |
$ 0.97 |
$ 3.90 |
$ 2.97 |
||||
|
Basic weighted-average shares outstanding |
||||||||
|
Class A common stock |
521 |
494 |
506 |
478 |
||||
|
Class B common stock |
245 |
245 |
245 |
245 |
||||
|
Class C common stock |
59 |
99 |
78 |
117 |
||||
|
Diluted earnings per share |
||||||||
|
Class A common stock |
$ 1.43 |
$ 0.97 |
$ 3.89 |
$ 2.96 |
||||
|
Class B common stock |
$ 0.70 |
$ 0.55 |
$ 1.96 |
$ 1.71 |
||||
|
Class C common stock |
$ 1.43 |
$ 0.97 |
$ 3.89 |
$ 2.96 |
||||
|
Diluted weighted-average shares outstanding |
||||||||
|
Class A common stock |
704 |
738 |
712 |
742 |
||||
|
Class B common stock |
245 |
245 |
245 |
245 |
||||
|
Class C common stock |
59 |
99 |
78 |
117 |
||||
|
VISA INC. |
||||
|
CONSOLIDATED BALANCE SHEETS |
||||
|
(UNAUDITED) |
||||
|
June 30, |
September 30, |
|||
|
2011 |
2010 |
|||
|
(in millions, except par value data) |
||||
|
Assets |
||||
|
Cash and cash equivalents |
$ 3,600 |
$ 3,867 |
||
|
Restricted cash - litigation escrow |
2,927 |
1,866 |
||
|
Investment securities |
||||
|
Trading |
65 |
60 |
||
|
Available-for-sale |
155 |
124 |
||
|
Settlement receivable |
405 |
402 |
||
|
Accounts receivable |
551 |
476 |
||
|
Customer collateral |
897 |
899 |
||
|
Current portion of client incentives |
195 |
175 |
||
|
Current portion of deferred tax assets |
507 |
623 |
||
|
Prepaid expenses and other current assets |
214 |
242 |
||
|
Total current assets |
9,516 |
8,734 |
||
|
Restricted cash - litigation escrow |
- |
70 |
||
|
Investment securities, available-for-sale |
7 |
24 |
||
|
Client incentives |
109 |
101 |
||
|
Property, equipment and technology, net |
1,510 |
1,357 |
||
|
Other assets |
184 |
197 |
||
|
Intangible assets, net |
11,453 |
11,478 |
||
|
Goodwill |
11,668 |
11,447 |
||
|
Total assets |
$ 34,447 |
$ 33,408 |
||
|
Liabilities |
||||
|
Accounts payable |
$ 93 |
$ 137 |
||
|
Settlement payable |
465 |
406 |
||
|
Customer collateral |
897 |
899 |
||
|
Accrued compensation and benefits |
334 |
370 |
||
|
Client incentives |
606 |
418 |
||
|
Accrued liabilities |
611 |
625 |
||
|
Current portion of long-term debt |
13 |
12 |
||
|
Current portion of accrued litigation |
512 |
631 |
||
|
Total current liabilities |
3,531 |
3,498 |
||
|
Long-term debt |
22 |
32 |
||
|
Accrued litigation |
- |
66 |
||
|
Deferred tax liabilities |
4,254 |
4,181 |
||
|
Other liabilities |
588 |
617 |
||
|
Total liabilities |
8,395 |
8,394 |
||
|
Equity |
||||
|
Preferred stock, $0.0001 par value, 25 shares authorized and none issued |
$ - |
$ - |
||
|
Class A common stock, $0.0001 par value, 2,001, 622 shares authorized, 519 and 493 shares issued and outstanding at June 30, 2011 and September 30, 2010, respectively |
- |
- |
||
|
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at June 30, 2011 and September 30, 2010 |
- |
- |
||
|
Class C common stock, $0.0001 par value, 1,097 shares authorized, 52 and 97 shares issued and outstanding at June 30, 2011 and September 30, 2010, respectively |
- |
- |
||
|
Additional paid-in capital |
20,056 |
20,794 |
||
|
Accumulated income |
6,130 |
4,368 |
||
|
Accumulated other comprehensive income (loss), net |
||||
|
Investment securities, available-for-sale |
- |
3 |
||
|
Defined benefit pension and other postretirement plans |
(112) |
(115) |
||
|
Derivative instruments classified as cash flow hedges |
(33) |
(40) |
||
|
Foreign currency translation gain |
9 |
1 |
||
|
Total accumulated other comprehensive loss, net |
(136) |
(151) |
||
|
Total Visa Inc. stockholders' equity |
26,050 |
25,011 |
||
|
Non-controlling interest |
2 |
3 |
||
|
Total equity |
26,052 |
25,014 |
||
|
Total liabilities and equity |
$ 34,447 |
$ 33,408 |
||
|
VISA INC. |
||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||
|
(UNAUDITED) |
||||
|
Nine Months Ended June 30, |
||||
|
2011 |
2010 |
|||
|
(in millions) |
||||
|
Operating Activities |
||||
|
Net income including non-controlling interest |
$ 2,768 |
2,191 |
||
|
Adjustments to reconcile net income including non-controlling interest to net cash provided by (used in) operating activities: |
||||
|
Amortization of client incentives |
1,304 |
1,139 |
||
|
Fair value adjustment for the Visa Europe put option |
(122) |
- |
||
|
Share-based compensation |
122 |
95 |
||
|
Excess tax benefit for share-based compensation |
(12) |
(13) |
||
|
Depreciation and amortization of property, equipment and technology and intangible assets |
211 |
187 |
||
|
Litigation provision and accretion |
15 |
(18) |
||
|
Net recognized gain on investment securities, including other-than-temporary impairment |
(3) |
(17) |
||
|
Net recognized (gain) loss on other investments, including other-than-temporary impairment |
(86) |
3 |
||
|
Deferred income taxes |
169 |
190 |
||
|
Other |
(18) |
(9) |
||
|
Change in operating assets and liabilities: |
||||
|
Trading securities |
(5) |
3 |
||
|
Settlement receivable |
3 |
189 |
||
|
Accounts receivable |
(70) |
(57) |
||
|
Client incentives |
(1,144) |
(999) |
||
|
Other assets |
30 |
(27) |
||
|
Accounts payable |
(47) |
(62) |
||
|
Settlement payable |
52 |
(188) |
||
|
Accrued compensation and benefits |
(37) |
(107) |
||
|
Accrued and other liabilities |
74 |
195 |
||
|
Accrued litigation |
(200) |
(897) |
||
|
Net cash provided by operating activities |
3,004 |
1,798 |
||
|
Investing Activities |
||||
|
Acquisitions, net of cash received of $22 |
(268) |
- |
||
|
Purchases of property, equipment and technology |
(236) |
(144) |
||
|
Proceeds from disposal of property, equipment and technology |
- |
1 |
||
|
Distributions from money market investment |
- |
85 |
||
|
Investment securities, available-for-sale: |
||||
|
Purchases |
(50) |
(1) |
||
|
Proceeds from sales and maturities |
35 |
50 |
||
|
Purchases of / contributions to other investments |
(10) |
(3) |
||
|
Proceeds / distributions from other investments |
104 |
2 |
||
|
Net cash used in investing activities |
(425) |
(10) |
||
|
Financing Activities |
||||
|
Repurchase of class A common stock |
(1,600) |
(664) |
||
|
Dividends paid |
(320) |
(278) |
||
|
Deposits into litigation escrow account - retrospective responsibility plan |
(1,200) |
(500) |
||
|
Payment from litigation escrow account - retrospective responsibility plan |
210 |
210 |
||
|
Cash proceeds from exercise of stock options |
63 |
36 |
||
|
Excess tax benefit for share-based compensation |
12 |
13 |
||
|
Principal payments on debt |
(9) |
(9) |
||
|
Principal payments on capital lease obligations |
(10) |
(10) |
||
|
Net cash used in financing activities |
(2,854) |
(1,202) |
||
|
Effect of exchange rate changes on cash and cash equivalents |
8 |
2 |
||
|
(Decrease) increase in cash and cash equivalents |
(267) |
588 |
||
|
Cash and cash equivalents at beginning of year |
3,867 |
4,617 |
||
|
Cash and cash equivalents at end of period |
$ 3,600 |
$ 5,205 |
||
|
Supplemental Disclosure of Cash Flow Information |
||||
|
Income taxes paid, net of refunds |
$ 1,251 |
$ 977 |
||
|
Amounts included in accounts payable and accrued and other liabilities related to purchases of property, equipment and technology |
$ 17 |
$ 15 |
||
|
Interest payments on debt |
$ 2 |
$ 3 |
||
|
VISA INC. |
|||||||||||||||||||||
|
FISCAL 2010 AND 2011 QUARTERLY RESULTS OF OPERATIONS |
|||||||||||||||||||||
|
(UNAUDITED) |
|||||||||||||||||||||
|
Fiscal 2010 Quarter Ended |
Fiscal 2011 Quarter Ended |
||||||||||||||||||||
|
June 30, |
September 30, |
December 31, |
March 31, 2011 |
June 30, |
|||||||||||||||||
|
(in millions) |
|||||||||||||||||||||
|
Operating Revenues |
|||||||||||||||||||||
|
Service revenues |
$ 873 |
$ 912 |
$ 1,008 |
$ 1,093 |
$ 1,055 |
||||||||||||||||
|
Data processing revenues (1) |
792 |
840 |
844 |
823 |
886 |
||||||||||||||||
|
International transaction revenues |
574 |
619 |
630 |
624 |
662 |
||||||||||||||||
|
Other revenues (2) |
183 |
167 |
161 |
156 |
167 |
||||||||||||||||
|
Client incentives |
(393) |
(421) |
(405) |
(451) |
(448) |
||||||||||||||||
|
Total operating revenues |
2,029 |
2,117 |
2,238 |
2,245 |
2,322 |
||||||||||||||||
|
Operating Expenses |
|||||||||||||||||||||
|
Personnel |
285 |
353 |
357 |
351 |
363 |
||||||||||||||||
|
Network and processing (1) |
103 |
119 |
80 |
80 |
91 |
||||||||||||||||
|
Marketing (2) |
277 |
233 |
197 |
183 |
251 |
||||||||||||||||
|
Professional fees |
77 |
108 |
61 |
77 |
84 |
||||||||||||||||
|
Depreciation and amortization |
63 |
78 |
67 |
70 |
74 |
||||||||||||||||
|
General and administrative |
87 |
117 |
110 |
95 |
114 |
||||||||||||||||
|
Litigation provision |
- |
(4) |
- |
6 |
- |
||||||||||||||||
|
Total operating expenses |
892 |
1,004 |
872 |
862 |
977 |
||||||||||||||||
|
Operating income (1) (2) |
1,137 |
1,113 |
1,366 |
1,383 |
1,345 |
||||||||||||||||
|
Other Income (Expense) |
|||||||||||||||||||||
|
Interest (expense) income |
(13) |
(15) |
4 |
(12) |
(11) |
||||||||||||||||
|
Investment income, net |
1 |
20 |
10 |
9 |
88 |
||||||||||||||||
|
Other |
(3) |
77 |
2 |
(3) |
121 |
||||||||||||||||
|
Total other (expense) income |
(15) |
82 |
16 |
(6) |
198 |
||||||||||||||||
|
Income before income taxes |
1,122 |
1,195 |
1,382 |
1,377 |
1,543 |
||||||||||||||||
|
Income tax provision |
406 |
422 |
498 |
497 |
539 |
||||||||||||||||
|
Net income including non-controlling interest |
716 |
773 |
884 |
880 |
1004 |
||||||||||||||||
|
Loss attributable to non-controlling interest |
- |
1 |
- |
1 |
1 |
||||||||||||||||
|
Net income attributable to Visa Inc. (1) (2) |
$ 716 |
$ 774 |
$ 884 |
$ 881 |
$ 1,005 |
||||||||||||||||
|
(1) As previously announced, beginning in the first quarter of fiscal 2011, the Company changed its presentation for non-Visa transactions pass-through revenues and expenses from a gross reporting to a net reporting basis. Previously, pass-through revenues were recorded in data processing and related expenses were recorded in network and processing. This change in presentation does not impact operating income or net income attributable to Visa Inc. as revenue and expense amounts completely offset. On a quarterly basis, related fiscal 2010 revenues and expenses were $35 million in Q3 and $38 million in Q4. These amounts will not recur in fiscal 2011 as a result of this change in presentation. |
|||||||||||||||||||||
|
(2) As previously announced, as a result of certain contractual changes relating to our Visa Extras rewards platform, certain fiscal 2010 revenues recorded in other revenues, and expenses recorded in marketing, will not recur in fiscal 2011. These changes do not impact operating income or net income attributable to Visa Inc. as revenue and expense amounts completely offset. On a quarterly basis, related fiscal 2010 revenues and expenses were $27 million in Q3 and $7 million in Q4. |
|||||||||||||||||||||
|
Operational Performance Data |
|
The tables below provide information regarding the available operational results for the 3 months ended June 30, 2011, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 2011 and 2010, for cards carrying the Visa, Visa Electron and Interlink brands. Also included is a table with information on the number of billable transactions processed on Visa Inc.'s CyberSource network.
1. Branded Volume and Transactions
The tables present total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.
|
For the 3 Months Ended June 30, 2011 |
||||||||||||
|
Total |
Growth |
Growth |
Payments |
Growth |
Growth |
Payments |
Cash |
Growth |
Growth |
Cash |
||
|
All Visa Credit & Debit |
||||||||||||
|
Asia Pacific |
$377 |
21.8% |
12.4% |
$246 |
24.4% |
13.7% |
2,744 |
$130 |
17.2% |
10.1% |
593 |
|
|
Canada |
60 |
13.7% |
7.7% |
55 |
14.3% |
8.4% |
474 |
5 |
6.9% |
1.3% |
10 |
|
|
CEMEA |
204 |
32.1% |
26.8% |
35 |
42.9% |
36.7% |
530 |
169 |
30.1% |
24.9% |
991 |
|
|
LAC |
245 |
32.2% |
23.3% |
86 |
38.3% |
28.7% |
1,830 |
159 |
29.1% |
20.5% |
911 |
|
|
US |
624 |
10.2% |
10.2% |
518 |
10.5% |
10.5% |
10,415 |
106 |
8.8% |
8.8% |
901 |
|
|
Visa Inc. |
1,510 |
19.0% |
14.7% |
941 |
17.3% |
13.5% |
15,993 |
569 |
22.1% |
16.7% |
3,407 |
|
|
Visa Credit Programs |
||||||||||||
|
US |
$235 |
9.7% |
9.7% |
$224 |
9.8% |
9.8% |
2,569 |
$11 |
6.1% |
6.1% |
17 |
|
|
Rest of World |
399 |
24.8% |
15.5% |
348 |
25.2% |
15.7% |
4,056 |
52 |
22.1% |
14.8% |
180 |
|
|
Visa Inc. |
634 |
18.7% |
13.3% |
571 |
18.7% |
13.3% |
6,625 |
62 |
18.9% |
13.1% |
197 |
|
|
Visa Debit Programs |
||||||||||||
|
US |
$390 |
10.5% |
10.5% |
$295 |
10.9% |
10.9% |
7,846 |
$95 |
9.1% |
9.1% |
885 |
|
|
Rest of World |
487 |
27.4% |
20.2% |
75 |
35.5% |
26.3% |
1,522 |
412 |
26.0% |
19.1% |
2,326 |
|
|
Visa Inc. |
876 |
19.3% |
15.7% |
369 |
15.2% |
13.7% |
9,368 |
507 |
22.5% |
17.1% |
3,211 |
|
|
For the 3 Months Ended March 31, 2011 |
||||||||||||||
|
Total |
Growth |
Growth |
Payments |
Growth |
Growth |
Payments |
Cash |
Growth |
Growth |
Cash |
Accounts |
Cards |
||
|
All Visa Credit & Debit |
||||||||||||||
|
Asia Pacific |
$352 |
18.7% |
12.4% |
$230 |
18.5% |
11.8% |
2,629 |
$121 |
19.0% |
13.5% |
578 |
476 |
573 |
|
|
Canada |
52 |
12.3% |
7.3% |
48 |
11.4% |
6.5% |
420 |
5 |
21.2% |
15.8% |
9 |
25 |
33 |
|
|
CEMEA |
177 |
26.5% |
24.9% |
30 |
33.8% |
31.2% |
483 |
147 |
25.1% |
23.7% |
906 |
226 |
225 |
|
|
LAC |
222 |
26.8% |
20.5% |
77 |
32.5% |
25.9% |
1,740 |
145 |
23.9% |
17.8% |
860 |
360 |
389 |
|
|
US |
576 |
11.2% |
11.2% |
477 |
11.6% |
11.6% |
9,580 |
99 |
9.2% |
9.2% |
839 |
510 |
650 |
|
|
Visa Inc. |
1,379 |
17.2% |
14.4% |
862 |
15.7% |
13.1% |
14,853 |
517 |
19.9% |
16.6% |
3,193 |
1,598 |
1,870 |
|
|
Visa Credit Programs |
||||||||||||||
|
US |
$209 |
7.6% |
7.6% |
$199 |
9.1% |
9.1% |
2,283 |
$10 |
-15.7% |
-15.7% |
15 |
197 |
256 |
|
|
Rest of World |
364 |
19.2% |
13.2% |
318 |
19.1% |
12.9% |
3,825 |
46 |
19.9% |
15.5% |
163 |
444 |
504 |
|
|
Visa Inc. |
573 |
14.7% |
11.1% |
517 |
15.1% |
11.4% |
6,108 |
56 |
11.7% |
8.5% |
177 |
641 |
760 |
|
|
Visa Debit Programs |
||||||||||||||
|
US |
$367 |
13.3% |
13.3% |
$278 |
13.4% |
13.4% |
7,297 |
$89 |
12.8% |
12.8% |
824 |
312 |
395 |
|
|
Rest of World |
439 |
24.4% |
19.9% |
68 |
31.8% |
26.1% |
1,448 |
372 |
23.2% |
18.9% |
2,192 |
644 |
715 |
|
|
Visa Inc. |
806 |
19.1% |
16.8% |
345 |
16.6% |
15.7% |
8,745 |
461 |
21.0% |
17.6% |
3,016 |
956 |
1,110 |
|
|
For the 3 Months Ended December 31, 2010 |
||||||||||||||
|
Total |
Growth |
Growth |
Payments |
Growth |
Growth |
Payments |
Cash |
Growth |
Growth |
Cash |
Accounts |
Cards |
||
|
All Visa Credit & Debit |
||||||||||||||
|
Asia Pacific |
$361 |
13.6% |
7.9% |
$240 |
21.9% |
15.3% |
2,767 |
$121 |
0.2% |
-4.1% |
591 |
473 |
571 |
|
|
Canada |
58 |
12.1% |
7.6% |
53 |
11.3% |
6.8% |
467 |
5 |
22.8% |
17.9% |
9 |
25 |
33 |
|
|
CEMEA |
184 |
25.6% |
26.6% |
30 |
32.8% |
31.5% |
478 |
154 |
24.3% |
25.7% |
955 |
219 |
222 |
|
|
LAC |
233 |
21.4% |
19.0% |
81 |
26.0% |
25.8% |
1,822 |
151 |
19.1% |
15.6% |
914 |
358 |
387 |
|
|
US |
591 |
11.5% |
11.5% |
493 |
12.5% |
12.5% |
9,999 |
98 |
7.0% |
7.0% |
850 |
530 |
685 |
|
|
Visa Inc. |
1,427 |
15.3% |
13.3% |
898 |
16.6% |
14.5% |
15,533 |
530 |
13.2% |
11.3% |
3,319 |
1,605 |
1,898 |
|
|
Visa Credit Programs |
||||||||||||||
|
US |
$226 |
5.4% |
5.4% |
$216 |
7.6% |
7.6% |
2,534 |
$10 |
-27.0% |
-27.0% |
16 |
205 |
267 |
|
|
Rest of World |
381 |
20.1% |
15.2% |
334 |
19.8% |
14.7% |
4,008 |
48 |
22.6% |
18.7% |
167 |
442 |
503 |
|
|
Visa Inc. |
608 |
14.2% |
11.3% |
550 |
14.7% |
11.8% |
6,542 |
58 |
9.5% |
6.9% |
183 |
647 |
770 |
|
|
Visa Debit Programs |
||||||||||||||
|
US |
$365 |
15.8% |
15.8% |
$277 |
16.6% |
16.6% |
7,465 |
$88 |
13.1% |
13.1% |
834 |
324 |
419 |
|
|
Rest of World |
454 |
16.5% |
14.1% |
71 |
33.3% |
30.0% |
1,526 |
384 |
13.8% |
11.6% |
2,302 |
633 |
709 |
|
|
Visa Inc. |
820 |
16.1% |
14.8% |
348 |
19.7% |
19.1% |
8,991 |
472 |
13.7% |
11.9% |
3,136 |
957 |
1,127 |
|
|
For the 3 Months Ended September 30, 2010 |
||||||||||||||
|
Total |
Growth |
Growth |
Payments |
Growth |
Growth |
Payments |
Cash |
Growth |
Growth |
Cash |
Accounts |
Cards |
||
|
All Visa Credit & Debit |
||||||||||||||
|
Asia Pacific |
$326 |
16.2% |
11.9% |
$212 |
16.2% |
12.2% |
2,681 |
$114 |
16.2% |
11.4% |
595 |
467 |
556 |
|
|
Canada |
53 |
10.4% |
7.4% |
49 |
10.2% |
7.2% |
450 |
5 |
12.0% |
8.9% |
9 |
24 |
32 |
|
|
CEMEA |
164 |
22.1% |
23.3% |
27 |
26.4% |
27.5% |
418 |
137 |
21.3% |
22.4% |
860 |
208 |
212 |
|
|
LAC |
204 |
22.4% |
20.2% |
69 |
24.0% |
23.8% |
1,634 |
135 |
21.6% |
18.4% |
873 |
356 |
385 |
|
|
US |
574 |
12.3% |
12.3% |
474 |
13.5% |
13.5% |
9,758 |
100 |
7.1% |
7.1% |
870 |
502 |
668 |
|
|
Visa Inc. |
1,320 |
15.8% |
14.4% |
830 |
15.1% |
13.9% |
14,941 |
491 |
16.9% |
15.2% |
3,207 |
1,557 |
1,852 |
|
|
Visa Credit Programs |
||||||||||||||
|
US |
$217 |
3.3% |
3.3% |
$207 |
6.4% |
6.4% |
2,431 |
$10 |
-35.9% |
-35.9% |
17 |
208 |
269 |
|
|
Rest of World |
338 |
14.6% |
11.6% |
295 |
14.5% |
11.5% |
3,835 |
43 |
15.3% |
12.5% |
157 |
439 |
501 |
|
|
Visa Inc. |
555 |
9.9% |
8.2% |
503 |
11.0% |
9.3% |
6,266 |
53 |
0.2% |
-1.6% |
174 |
647 |
770 |
|
|
Visa Debit Programs |
||||||||||||||
|
US |
$356 |
18.6% |
18.6% |
$266 |
19.7% |
19.7% |
7,327 |
$90 |
15.7% |
15.7% |
853 |
294 |
399 |
|
|
Rest of World |
409 |
22.2% |
20.1% |
61 |
34.2% |
32.4% |
1,347 |
348 |
20.3% |
18.1% |
2,180 |
616 |
683 |
|
|
Visa Inc. |
765 |
20.5% |
19.4% |
327 |
22.1% |
21.8% |
8,675 |
438 |
19.3% |
17.6% |
3,033 |
910 |
1,082 |
|
|
For the 3 Months Ended June 30, 2010 |
||||||||||||||
|
Total |
Growth |
Growth |
Payments |
Growth |
Growth |
Payments |
Cash |
Growth |
Growth |
Cash |
Accounts |
Cards |
||
|
All Visa Credit & Debit |
||||||||||||||
|
Asia Pacific |
$309 |
19.3% |
12.4% |
$198 |
19.9% |
12.5% |
2,580 |
$111 |
18.1% |
12.3% |
581 |
458 |
545 |
|
|
Canada |
53 |
17.5% |
7.5% |
48 |
18.1% |
8.1% |
434 |
5 |
11.5% |
2.1% |
9 |
24 |
31 |
|
|
CEMEA |
154 |
27.0% |
25.7% |
24 |
30.9% |
28.5% |
394 |
130 |
26.3% |
25.2% |
852 |
203 |
204 |
|
|
LAC |
185 |
23.2% |
16.3% |
62 |
25.8% |
21.1% |
1,519 |
123 |
21.9% |
14.0% |
849 |
353 |
382 |
|
|
US |
567 |
12.1% |
12.1% |
469 |
13.8% |
13.8% |
9,515 |
97 |
4.9% |
4.9% |
855 |
492 |
675 |
|
|
Visa Inc. |
1,269 |
17.3% |
14.1% |
802 |
16.8% |
14.0% |
14,441 |
467 |
18.0% |
14.3% |
3,145 |
1,530 |
1,837 |
|
|
Visa Credit Programs |
||||||||||||||
|
US |
$214 |
2.3% |
2.3% |
$204 |
5.9% |
5.9% |
2,347 |
$10 |
-39.3% |
-39.3% |
17 |
210 |
274 |
|
|
Rest of World |
320 |
18.7% |
11.7% |
278 |
18.6% |
11.6% |
3,679 |
42 |
19.3% |
12.4% |
155 |
436 |
499 |
|
|
Visa Inc. |
534 |
11.5% |
7.9% |
481 |
12.9% |
9.2% |
6,026 |
53 |
0.2% |
-3.1% |
171 |
646 |
772 |
|
|
Visa Debit Programs |
||||||||||||||
|
US |
$353 |
19.1% |
19.1% |
$266 |
20.6% |
20.6% |
7,168 |
$87 |
14.8% |
14.8% |
838 |
282 |
401 |
|
|
Rest of World |
382 |
24.5% |
19.3% |
55 |
38.0% |
31.0% |
1,248 |
327 |
22.4% |
17.5% |
2,136 |
601 |
664 |
|
|
Visa Inc. |
735 |
21.8% |
19.2% |
321 |
23.3% |
22.4% |
8,415 |
414 |
20.7% |
17.0% |
2,974 |
884 |
1,065 |
|
|
For the 12 Months Ended June 30, 2011 |
||||||||||||
|
Total |
Growth |
Growth |
Payments |
Growth |
Growth |
Payments |
Cash |
Growth |
Growth |
Cash |
||
|
All Visa Credit & Debit |
||||||||||||
|
Asia Pacific |
$1,416 |
17.6% |
11.1% |
$929 |
20.3% |
13.3% |
10,821 |
$487 |
12.6% |
7.2% |
2,357 |
|
|
Canada |
224 |
12.2% |
7.5% |
204 |
11.9% |
7.2% |
1,811 |
19 |
15.3% |
10.5% |
38 |
|
|
CEMEA |
729 |
26.7% |
25.5% |
122 |
34.3% |
32.0% |
1,909 |
607 |
25.3% |
24.2% |
3,713 |
|
|
LAC |
903 |
25.7% |
20.8% |
313 |
30.3% |
26.2% |
7,025 |
590 |
23.4% |
18.1% |
3,558 |
|
|
US |
2,365 |
11.3% |
11.3% |
1,962 |
12.0% |
12.0% |
39,753 |
403 |
8.0% |
8.0% |
3,460 |
|
|
Visa Inc. |
5,637 |
16.9% |
14.2% |
3,530 |
16.2% |
13.8% |
61,320 |
2,106 |
18.0% |
14.9% |
13,126 |
|
|
Visa Credit Programs |
||||||||||||
|
US |
$887 |
6.5% |
6.5% |
$846 |
8.2% |
8.2% |
9,817 |
$41 |
-20.5% |
-20.5% |
65 |
|
|
Rest of World |
1,482 |
19.8% |
14.0% |
1,294 |
19.7% |
13.8% |
15,724 |
188 |
20.1% |
15.4% |
666 |
|
|
Visa Inc. |
2,369 |
14.4% |
11.0% |
2,140 |
14.9% |
11.5% |
25,541 |
229 |
10.0% |
6.8% |
731 |
|
|
Visa Debit Programs |
||||||||||||
|
US |
$1,478 |
14.4% |
14.4% |
$1,116 |
15.0% |
15.0% |
29,935 |
$362 |
12.6% |
12.6% |
3,395 |
|
|
Rest of World |
1,789 |
22.6% |
18.5% |
274 |
33.7% |
28.5% |
5,843 |
1,515 |
20.7% |
16.8% |
9,000 |
|
|
Visa Inc. |
3,267 |
18.7% |
16.6% |
1,390 |
18.2% |
17.4% |
35,778 |
1,877 |
19.1% |
16.0% |
12,395 |
|
|
For the 12 Months Ended June 30, 2010 |
||||||||||||||
|
Total |
Growth |
Growth |
Payments |
Growth |
Growth |
Payments |
Cash |
Growth |
Growth |
Cash |
Accounts |
Cards |
||
|
All Visa Credit & Debit |
||||||||||||||
|
Asia Pacific |
$1,205 |
22.8% |
13.6% |
$772 |
21.3% |
11.3% |
10,056 |
$433 |
25.5% |
18.0% |
2,237 |
458 |
545 |
|
|
Canada |
199 |
14.9% |
3.0% |
182 |
17.4% |
5.2% |
1,663 |
17 |
-6.5% |
-16.3% |
35 |
24 |
31 |
|
|
CEMEA |
575 |
13.4% |
14.6% |
91 |
21.3% |
17.6% |
1,425 |
484 |
12.1% |
14.0% |
3,155 |
203 |
204 |
|
|
LAC |
718 |
23.5% |
14.3% |
240 |
27.3% |
18.6% |
5,837 |
478 |
21.7% |
12.3% |
3,355 |
353 |
382 |
|
|
US |
2,126 |
6.1% |
6.1% |
1,752 |
8.1% |
8.1% |
35,241 |
373 |
-2.2% |
-2.2% |
3,142 |
492 |
675 |
|
|
Visa Inc. |
4,823 |
13.6% |
10.0% |
3,038 |
13.5% |
9.8% |
54,222 |
1,785 |
13.7% |
10.4% |
11,926 |
1,530 |
1,837 |
|
|
Visa Credit Programs |
||||||||||||||
|
US |
$833 |
-5.4% |
-5.4% |
$782 |
-0.4% |
-0.4% |
9,139 |
$51 |
-46.5% |
-46.5% |
73 |
210 |
274 |
|
|
Rest of World |
1,238 |
17.7% |
8.6% |
1,081 |
19.4% |
9.8% |
14,222 |
157 |
7.1% |
1.1% |
573 |
436 |
499 |
|
|
Visa Inc. |
2,071 |
7.2% |
2.7% |
1,862 |
10.2% |
5.4% |
23,361 |
208 |
-14.1% |
-16.7% |
646 |
646 |
772 |
|
|
Visa Debit Programs |
||||||||||||||
|
US |
$1,292 |
15.2% |
15.2% |
$971 |
16.0% |
16.0% |
26,101 |
$322 |
12.7% |
12.7% |
3,069 |
282 |
401 |
|
|
Rest of World |
1,460 |
22.5% |
17.3% |
205 |
36.1% |
26.0% |
4,759 |
1,255 |
20.5% |
16.0% |
8,210 |
601 |
664 |
|
|
Visa Inc. |
2,752 |
18.9% |
16.3% |
1,175 |
19.0% |
17.7% |
30,860 |
1,577 |
18.8% |
15.3% |
11,280 |
884 |
1,065 |
|
Footnote
The preceding tables present regional total volume, payments volume and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.
Payments volume represents the aggregate dollar amount of purchases made with cards carrying the Visa, Visa Electron and Interlink brands for the relevant period; and cash volume represents the aggregate dollar amount of cash disbursements obtained with these cards for the relevant period and includes the impact of balance transfers and convenience checks; but excludes proprietary PLUS volume. Total volume represents payments volume plus cash volume.
Visa payment products are comprised of credit and debit programs, and data relating to each program is included in the tables. Debit programs include Visa's signature based and Interlink (PIN) debit programs.
The data presented is reported quarterly by Visa's members on their operating certificates and is subject to verification by Visa. On occasion, members may update previously submitted information.
Visa's CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Effective with the 3 months ended September, 2009, Pakistan and Afghanistan were moved from the AP to CEMEA region. Several European Union countries in Central Europe, Israel and Turkey are not included in CEMEA. LAC is comprised of countries in Central and South America and the Caribbean. Rest of World includes Asia Pacific, Canada, CEMEA and LAC.
Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Visa Inc. volumes are reported ("Nominal USD"). These exchange rates are calculated on a quarterly basis using the established exchange rate for each quarter. To eliminate the impact of foreign currency fluctuations against the U.S. dollar in measuring performance, Visa Inc. also reports year-over-year growth in total volume, payments volume and cash volume on the basis of local currency information ("Constant USD"). This presentation represents Visa's historical methodology which may be subject to review and refinement.
2. Cross Border Volume
The table below represents cross border volume growth for cards carrying the Visa, Visa Electron, Interlink and PLUS brands. Cross border volume refers to payments and cash volume where the issuing country is different from the merchant country.
|
Period |
Growth (Nominal USD) |
Growth (Constant USD) |
|
|
3 Months Ended |
|||
|
Jun 30, 2011 |
20% |
14% |
|
|
Mar 31, 2011 |
16% |
13% |
|
|
Dec 31, 2010 |
16% |
15% |
|
|
Sep 30, 2010 |
16% |
16% |
|
|
Jun 30, 2010 |
20% |
17% |
|
|
12 Months Ended |
|||
|
Jun 30, 2011 |
17% |
14% |
|
|
Jun 30, 2010 |
8% |
6% |
|
3. Visa Processed Transactions
The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa's networks. CyberSource transactions are not included in this table and are reported in the next section.
|
Period |
Processed Transactions (millions) |
Growth |
|
|
3 Months Ended |
|||
|
Jun 30, 2011 |
13,038 |
11% |
|
|
Mar 31, 2011 |
12,040 |
13% |
|
|
Dec 31, 2010 |
12,580 |
15% |
|
|
Sep 30, 2010 |
12,119 |
16% |
|
|
Jun 30, 2010 |
11,721 |
14% |
|
|
12 Months Ended |
|||
|
Jun 30, 2011 |
49,778 |
14% |
|
|
Jun 30, 2010 |
43,755 |
12% |
|
4. CyberSource Transactions
The table below represents billable transactions processed on Visa Inc.'s CyberSource network.
|
Period |
Billable Transactions (millions) |
Growth |
|
|
3 Months Ended |
|||
|
Jun 30, 2011 |
1,045 |
38% |
|
|
Mar 31, 2011 |
1,018 |
38% |
|
|
Dec 31, 2010 |
987 |
40% |
|
|
Sep 30, 2010 |
829 |
36% |
|
|
Jun 30, 2010 |
758 |
31% |
|
|
12 Months Ended |
|||
|
Jun 30, 2011 |
3,879 |
38% |
|
|
Jun 30, 2010 |
2,814 |
31% |
|
SOURCE Visa Inc.