Visa Inc. Reports Fiscal Third Quarter 2014 Net Income of $1.4 Billion or $2.17 Per Diluted Share

7/24/2014


FOSTER CITY, Calif.--(BUSINESS WIRE)--Jul. 24, 2014-- Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal third quarter 2014. Net income for the quarter was $1.4 billion, an increase of 11% over the prior year, or $2.17 per share, an increase of 15% over the prior year. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

Net operating revenue in the fiscal third quarter of 2014 was $3.2 billion, an increase of 5% nominally or 7% on a constant dollar basis over the prior year, driven by solid growth in service revenue and data processing revenues. The strengthening of the U.S. dollar versus the prior year quarter negatively impacted net operating revenue growth by 2 percentage points.

“We are pleased to report 15% earnings per share growth in the face of a continued, subdued global economy,” said Charlie Scharf, Chief Executive Officer of Visa Inc. “As expected, revenue growth was affected by a strong U.S. dollar and tepid growth from cross-border transactions. More importantly, global payments volume and processed transactions remained healthy and strong. While some of the headwinds will likely continue in the short-term, we are confident our investments in products such as Visa Checkout, new technologies like tokenization, and new relationships with financial institutions and merchants will continue to drive double-digit revenue growth over the long-term.”

Fiscal Third Quarter 2014 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2014, on which fiscal third quarter service revenue is recognized, was 12% over the prior year at $1.1 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2014, was 11% over the prior year at $1.2 trillion.

Cross-border volume growth, on a constant dollar basis, was 7% for the three months ended June 30, 2014.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2014, were 16.7 billion, an 11% increase over the prior year.

Fiscal third quarter 2014 service revenues were $1.4 billion, an increase of 9% over 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 11% over the prior year to $1.3 billion. International transaction revenues grew 1% over the prior year to $860 million. Other revenues, which include the Visa Europe licensing fee, were $195 million, an increase of 9% over the prior year. Client incentives, which are a contra revenue item, were $638 million and represent 16.8% of gross revenues.

Total operating expenses were $1.1 billion for the quarter, a 3% decrease over the prior year, primarily related to a reduction in personnel, marketing expense and professional fees.

The effective tax rate was 33.0% for the quarter ended June 30, 2014.

Cash, cash equivalents, and available-for-sale investment securities were $6.8 billion at June 30, 2014.

The weighted-average number of diluted shares of class A common stock outstanding was 628 million for the quarter ended June 30, 2014.

Notable Events:

During the three months ended June 30, 2014, the Company repurchased 5.6 million shares of class A common stock, at an average price of $207.13 per share, using $1.2 billion of cash on hand. At June 30, 2014, the Company had $1.9 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

On July 23, 2014, the board of directors declared a quarterly cash dividend of $0.40 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 3, 2014, to all holders of record of the Company’s class A, class B and class C common stock as of August 15, 2014.

Financial Outlook:

Visa Inc. affirms its financial outlook for the following metrics for fiscal full-year 2014:

  • Annual operating margin: Low to mid 60s; and
  • Annual free cash flow: About $5 billion.

Visa Inc. updates its financial outlook for the following metrics for fiscal full-year 2014:

  • Annual net revenue growth: Constant revenue growth in the 9-10% range, with an expectation of two percentage points of negative foreign currency impact;
  • Client incentives as a percent of gross revenues: Around 17%;
  • Tax rate: 30-31% range; and
  • Annual diluted class A common stock earnings per share growth: 17.5-18.5% range.

Fiscal Third Quarter 2014 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 https://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 https://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 electronic payments. We operate one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 47,000 transaction messages a second, with fraud protection for consumers and assured 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 usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as "believes," "estimates," "expects," "intends," "may," "projects," "could," "should," "will," "will continue" and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make about our revenue, client incentives, operating margin, earnings per share, free cash flow, tax rate and the growth of those items.

By their nature, forward-looking statements: (i) speak only as of the date they are made; (ii) are not statements of historical fact or guarantees of future performance; and (iii) are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from our forward-looking statements due to a variety of factors, including the following:

  • the impact of laws, regulations and marketplace barriers, including:
    • rules capping debit interchange reimbursement rates and expanding financial institutions’ and merchants’ choices among debit payment networks promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act;
    • increased regulation in jurisdictions outside of the United States and in other product categories;
    • increased government support of national payment networks outside the United States; and
    • increased regulation on consumer privacy, data use and security;
  • developments in litigation and government enforcement, including those affecting interchange reimbursement fees, antitrust and tax;
  • new lawsuits, investigations or proceedings, or changes to our potential exposure in connection with pending lawsuits, investigations or proceedings;
  • economic factors, such as:
    • economic fragility in the Eurozone and in the United States;
    • general economic, political and social conditions in mature and emerging markets globally;
    • material changes in cross-border activity, foreign exchange controls and fluctuations in currency exchange rates; and
    • material changes in our financial institution clients' performance compared to our estimates;
  • industry developments, such as competitive pressure, rapid technological developments, and disintermediation from our payments network;
  • system developments, such as:
    • disruption of our transaction processing systems or the inability to process transactions efficiently;
    • account data breaches or increased fraudulent or other illegal activities involving Visa-branded cards or payment products; and
    • failure to maintain systems interoperability with Visa Europe;
  • costs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding stock;
  • the loss of organizational effectiveness or key employees;
  • the failure to integrate acquisitions successfully or to effectively develop new products and businesses;
  • natural disasters, terrorist attacks, military or political conflicts, and public health emergencies; and

various other factors, including those contained in our Annual Report on Form 10−K for the year ended September 30, 2013 and our other filings with the U.S. Securities and Exchange Commission. You should not place undue reliance on such statements. Except as required by law, we do not intend to update or revise any forward–looking statements as a result of new information, future developments or otherwise.

         
VISA INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
 

June 30,
2014

   

September 30,
2013

  (in millions, except par value data)
Assets        
Cash and cash equivalents $ 2,058       $ 2,186  
Restricted cash—litigation escrow   1,105         49  
Investment securities:        
Trading   86         75  
Available-for-sale   1,920         1,994  
Income tax receivable   26         142  
Settlement receivable   775         799  
Accounts receivable   824         761  
Customer collateral   936         866  
Current portion of client incentives   221         282  
Deferred tax assets   830         481  
Prepaid expenses and other current assets   244         187  
         
Total current assets   9,025         7,822  
         
Investment securities, available-for-sale   2,798         2,760  
Client incentives   84         89  
Property, equipment and technology, net   1,772         1,732  
Other assets   828         521  
Intangible assets, net   11,427         11,351  
Goodwill   11,741         11,681  
         
Total assets $ 37,675       $ 35,956  
         
Liabilities        
Accounts payable $ 101       $ 184  
Settlement payable   1,307         1,225  
Customer collateral   936         866  
Accrued compensation and benefits   398         523  
Client incentives   902         919  
Accrued liabilities   610         613  
Accrued litigation   1,060         5  
         
Total current liabilities   5,314         4,335  
         
Deferred tax liabilities   4,170         4,149  
Other liabilities   905         602  
         
Total liabilities   10,389         9,086  
         
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, 496 and 508 shares issued and outstanding at June 30, 2014 and September 30, 2013, respectively            
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at June 30, 2014 and September 30, 2013            
Class C common stock, $0.0001 par value, 1,097 shares authorized, 25 and 27 shares issued and outstanding at June 30, 2014 and September 30, 2013, respectively            
Additional paid-in capital   18,393         18,875  
Accumulated income   8,909         7,974  
Accumulated other comprehensive income (loss), net:        
Investment securities, available-for-sale   58         59  
Defined benefit pension and other postretirement plans   (68 )       (60 )
Derivative instruments classified as cash flow hedges   (5 )       23  
Foreign currency translation adjustments   (1 )       (1 )
         
Total accumulated other comprehensive (loss) income, net   (16 )       21  
         
Total equity   27,286         26,870  
         
Total liabilities and equity $ 37,675       $ 35,956  
         
 
VISA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                                       
       

Three Months Ended
June 30,

       

Nine Months Ended
June 30,

        2014       2013       2014         2013
        (in millions, except per share data)
Operating Revenues                                      
Service revenues       $ 1,417           $ 1,298           $ 4,298           $ 3,967  
Data processing revenues         1,321             1,191             3,819             3,456  
International transaction revenues         860             854             2,622             2,490  
Other revenues         195             179             558             533  
Client incentives         (638 )           (521 )           (1,824

)

          (1,641 )
                                       
Total operating revenues         3,155             3,001             9,473             8,805  
                                       
Operating Expenses                                      
Personnel         463             493             1,379             1,433  

Marketing

        228             252             659             640  
Network and processing         127             117             379             346  
Professional fees         82             103             234             282  
Depreciation and amortization         109             101             323             291  
General and administrative         126             108             354             322  
Litigation provision                     (1 )                       3  
                                       
Total operating expenses         1,135             1,173             3,328             3,317  
                                       
Operating income         2,020             1,828             6,145             5,488  
                                       
Non-operating income         10             5             29             3  
                                       
Income before income taxes         2,030             1,833             6,174             5,491  
                                       
Income tax provision         670             608             1,809             1,703  
                                       
Net income       $ 1,360           $ 1,225           $ 4,365           $ 3,788  
                                       
Basic earnings per share                                      
Class A common stock       $ 2.17           $ 1.89           $ 6.91           $ 5.76  
                                       
Class B common stock       $ 0.91           $ 0.79           $ 2.91           $ 2.42  
                                       
Class C common stock       $ 2.17           $ 1.89           $ 6.91           $ 5.76  
                                       
Basic weighted-average shares outstanding                                      
Class A common stock         496             515             500             524  
                                       
Class B common stock         245             245             245             245  
                                       
Class C common stock         26             28             26             29  
                                       
Diluted earnings per share                                      
Class A common stock       $ 2.17           $ 1.88           $ 6.89           $ 5.74  
                                       
Class B common stock       $ 0.91           $ 0.79           $ 2.90           $ 2.41  
                                       
Class C common stock       $ 2.17           $ 1.88           $ 6.89           $ 5.74  
                                       
Diluted weighted-average shares outstanding                                      
Class A common stock         628             651             633             660  
                                       
Class B common stock         245             245             245             245  
                                       
Class C common stock         26             28             26             29  
                                                       
 
VISA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
       

Nine Months Ended
June 30,

        2014       2013
        (in millions)
Operating Activities                
Net income       $ 4,365         $ 3,788  
Adjustments to reconcile net income to net cash provided by (used in) operating activities:                
Amortization of client incentives         1,824           1,641  
Share-based compensation         130           139  
Excess tax benefit for share-based compensation         (82 )         (64 )
Depreciation and amortization of property, equipment, technology and intangible assets         323           291  
Deferred income taxes         (358 )         1,562  
Other         10           42  
Change in operating assets and liabilities:                
Income tax receivable         116           (421 )
Settlement receivable         24           (5 )
Accounts receivable         (55 )         (56 )
Client incentives         (1,775 )         (1,700 )
Other assets         (434 )         (310 )
Accounts payable         (86 )         5  
Settlement payable         82           98  
Accrued and other liabilities         273           351  
Accrued litigation         1,055           (4,384 )
                 
Net cash provided by operating activities         5,412           977  
                 
Investing Activities                
Purchases of property, equipment, technology and intangible assets         (326 )         (333 )
Investment securities, available-for-sale:                
Purchases         (1,842 )         (2,789 )
Proceeds from sales and maturities         1,863           1,767  
Acquisition, net of cash received of $25         (134 )        

 
Purchases of / contributions to other investments         (3 )         (3 )
Proceeds / distributions from other investments        

          4  
                 
Net cash used in investing activities         (442 )         (1,354 )
                 
Financing Activities                
Repurchase of class A common stock         (3,362 )         (4,054 )
Dividends paid         (758 )         (653 )
(Return to) payments from litigation escrow account—retrospective responsibility plan         (1,056 )         4,383  
Cash proceeds from exercise of stock options         81           98  

Restricted stock and performance-based shares settled in cash for taxes

        (85 )         (64 )
Excess tax benefit for share-based compensation         82           64  
Payment for earn-out related to PlaySpan acquisition        

          (12 )
Principal payments on capital lease obligations        

          (6 )
                 
Net cash used in financing activities         (5,098 )         (244 )
                 
Decrease in cash and cash equivalents         (128 )         (621 )
Cash and cash equivalents at beginning of year         2,186           2,074  
                 
Cash and cash equivalents at end of period       $ 2,058         $ 1,453  
                 
Supplemental Disclosure                
Income taxes paid, net of refunds       $ 1,943         $ 478  
Non-cash accruals related to purchases of property, equipment, technology and intangible assets       $ 42         $ 27  
                         
 
VISA INC.
FISCAL 2014 AND 2013 QUARTERLY RESULTS OF OPERATIONS
(UNAUDITED)
                                       
    Fiscal 2014 Quarter Ended         Fiscal 2013 Quarter Ended
   

June 30,
2014

     

March 31,
2014

     

December 31,
2013

       

September 30,
2013

     

June 30,
2013

                   

(in millions)

                 
Operating Revenues                                      
Service revenues   $ 1,417         $ 1,462         $ 1,419           $ 1,385         $ 1,298  
Data processing revenues     1,321           1,234           1,264             1,186           1,191  
International transaction revenues     860           871           891             899           854  
Other revenues     195           183           180             183           179  
Client incentives     (638 )         (587 )         (599 )           (680 )         (521 )
                                       
Total operating revenues     3,155           3,163           3,155             2,973           3,001  
                                       
Operating Expenses                                      
Personnel     463           446           470             499           493  
Marketing     228           245           186             236           252  
Network and processing     127           120           132             122           117  
Professional fees     82           77           75             130           103  
Depreciation and amortization     109           107           107             106           101  
General and administrative     126           120           108             129           108  
Litigation provision    

                                          (1 )
                                       
Total operating expenses     1,135           1,115           1,078             1,222           1,173  
                                       
Operating income     2,020           2,048           2,077             1,751           1,828  
                                       

Non-operating income

    10           13           6             15           5  
                                       
Income before income taxes     2,030           2,061           2,083             1,766           1,833  
Income tax provision     670           463           676             574           608  
                                       
Net income   $ 1,360         $ 1,598         $ 1,407           $ 1,192         $ 1,225  
                                                           

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended June 30, 2014, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 2014 and 2013, 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, 2014
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

                                             
All Visa Credit & Debit                                            
Asia Pacific   $487   6.8%   9.3%   $337   11.0%   12.2%   3,832   $150   -1.7%   3.1%   908
Canada   64   0.0%   7.1%   59   0.7%   7.8%   623   5   -8.0%   -1.5%   12
CEMEA   277   5.2%   14.0%   65   18.6%   27.3%   1,398   212   1.6%   10.5%   1,192
LAC   266   -1.3%   9.7%   101   0.5%   12.6%   2,405   165   -2.3%   8.0%   1,013

US

  748   9.1%   9.1%   627   9.8%   9.8%   12,221   122   5.7%   5.7%   939
Visa Inc.   1,843   6.0%   9.9%   1,190   9.2%   11.5%   20,480   653   0.5%   7.1%   4,064
                                             
Visa Credit Programs                                            
US   $316   12.0%   12.0%   $303   12.2%   12.2%   3,572   $13   8.3%   8.3%   16

International

  487   5.3%   9.7%   440   6.8%   10.9%   5,373   47   -6.9%   -0.4%   183
Visa Inc.   803   7.9%   10.6%   743   9.0%   11.4%   8,945   60   -4.1%   1.3%   199
                                             
Visa Debit Programs                                            
US   $432   7.1%   7.1%   $323   7.7%   7.7%   8,649   $109   5.4%   5.4%   923

International

  607   2.8%   11.0%   123   15.4%   23.1%   2,886   484   0.0%   8.3%   2,942
Visa Inc.   1,039   4.5%   9.3%   447   9.7%   11.6%   11,535   592   0.9%   7.7%   3,865
                                             
     

 

 

For the 3 Months Ended March 31, 2014

   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                   

 

               
All Visa Credit & Debit                                          

 

 

 

   
Asia Pacific   $481   7.0%   11.5%   $327   10.8%   14.9%   3,574   $153   -0.3%   5.0%   878   642   738
Canada   57   0.8%   10.3%   52   0.7%   10.1%   552   5   2.3%   11.9%   11   34   44
CEMEA   252   4.1%   14.1%   59   16.4%   28.0%   1,252   194   0.9%   10.5%   1,105   306   307
LAC   250   -4.7%   11.4%   95   -4.0%   13.9%   2,367   155   -5.1%   9.9%   984   411   439

US

  690   8.0%   8.0%   575   8.5%   8.5%   11,140   115   5.2%   5.2%   876   568   733
Visa Inc.   1,729   4.9%   10.4%   1,108   8.0%   11.8%   18,885   622   -0.2%   7.9%   3,854   1,960   2,261
                                                     
Visa Credit Programs                                                    
US   $281   10.2%   10.2%   $269   10.6%   10.6%   3,148   $12   1.4%   1.4%   14   215   289

International

  463   4.9%   12.2%   417   5.9%   13.2%   5,069   46   -3.9%   4.1%   176   474   533
Visa Inc.   744   6.8%   11.5%   687   7.7%   12.2%   8,217   57   -2.8%   3.6%   191   688   822
                                                     
Visa Debit Programs                                                    
US   $409   6.5%   6.5%   $305   6.8%   6.8%   7,992   $103   5.6%   5.6%   861   353   444

International

  577   1.4%   11.9%   115   13.1%   24.8%   2,677   461   -1.1%   9.0%   2,802   919   994
Visa Inc.   985   3.5%   9.6%   421   8.4%   11.2%   10,668   565   0.0%   8.4%   3,663   1,272   1,438
                                                     
     
    For the 3 Months Ended December 31, 2013
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth

(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                                                    
Asia Pacific   $493   7.5%   12.7%   $339   8.3%   14.2%   3,677   $154   5.8%   9.5%   890   622   721
Canada   66   -0.1%   5.5%   62   -0.2%   5.5%   609   5   0.3%   6.0%   11   33   43
CEMEA   286   9.4%   13.3%   62   23.2%   28.7%   1,233   223   6.0%   9.6%   1,176   300   300
LAC   287   1.9%   10.8%   110   5.5%   15.9%   2,506   177   -0.2%   7.8%   1,066   407   437

US

  706   7.8%   7.8%   591   8.5%   8.5%   11,590   115   4.3%   4.3%   895   564   727
Visa Inc.   1,838   6.7%   10.3%   1,164   8.3%   11.5%   19,615   674   3.9%   8.1%   4,038   1,926   2,228
                                                     
Visa Credit Programs                                                    
US   $300   9.3%   9.3%   $288   9.6%   9.6%   3,447   $12   2.6%   2.6%   16   216   288

International

  502   5.1%   11.5%   450   5.7%   12.5%   5,294   53   0.4%   4.1%   196   472   531
Visa Inc.   802   6.6%   10.7%   737   7.2%   11.3%   8,740   65   0.8%   3.8%   213   688   819
                                                     
Visa Debit Programs                                                    
US   $406   6.7%   6.7%   $303   7.5%   7.5%   8,143   $103   4.5%   4.5%   879   348   439

International

  630   6.7%   12.2%   124   18.1%   24.7%   2,731   506   4.2%   9.5%   2,947   890   970
Visa Inc.   1,036   6.7%   10.0%   427   10.4%   11.9%   10,875   609   4.3%   8.6%   3,826   1,238   1,409
                                                     
                                                     
    For the 3 Months Ended September 30, 2013
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                                                    
Asia Pacific   $464   8.2%   13.6%   $314   8.5%   14.7%   3,558   $150   7.5%   11.2%   854   610   710
Canada   65   4.6%   9.4%   60   4.8%   9.6%   602   5   2.3%   7.0%   12   32   41
CEMEA   265   12.2%   16.1%   57   26.8%   32.7%   1,121   207   8.8%   12.2%   1,120   296   294
LAC   259   1.6%   11.8%   98   4.4%   16.0%   2,348   161   0.0%   9.4%   998   403   431

US

  692   9.3%   9.3%   575   10.3%   10.3%   11,402   117   4.8%   4.8%   928   545   713
Visa Inc.   1,745   8.0%   11.8%   1,105   9.6%   13.0%   19,030   640   5.4%   9.8%   3,912   1,886   2,189
                                                   

 

Visa Credit Programs                                                    
US   $290   10.9%   10.9%   $277   11.0%   11.0%   3,324   $12   8.2%   8.2%   16   210   285

International

  470   6.3%   12.9%   420   6.9%   14.0%   5,138   50   1.8%   5.1%   196   468   526
Visa Inc.   760   8.0%   12.2%   697   8.5%   12.8%   8,462   63   3.0%   5.7%   212   678  

811

                                                     
Visa Debit Programs                                                    
US   $402   8.2%   8.2%   $298   9.6%   9.6%   8,077   $104   4.4%   4.4%   912   335   428

International

  582   7.9%   13.9%   109   17.7%   24.9%   2,491   473   5.9%   11.6%   2,788   873   949
Visa Inc.   984   8.0%   11.5%   407   11.7%   13.3%   10,568   577   5.6%   10.3%   3,700   1,208   1,377
                                                     
     
    For the 3 Months Ended June 30, 2013
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                          

 

                       
Asia Pacific   $456   10.6%   12.9%   $304   9.7%   13.5%   3,354   $152   12.4%   11.6%   818   592   692
Canada   64   5.1%   5.8%   59   5.5%   6.2%   568   5   0.7%  

1.3%

  11   31   40
CEMEA   263   13.4%   15.7%   55   28.1%   31.6%   1,047   208   10.0%   12.1%   1,147   291   289
LAC   270   9.4%   11.8%   101   13.1%   16.9%   2,305   169   7.4%   9.0%   975   401   430

US

  686   10.4%   10.4%   571   11.3%   11.3%   11,217   115   5.8%   5.8%   906   538   702
Visa Inc.   1,739   10.5%   11.8%   1,089   11.4%   12.9%   18,491   650   9.0%   9.9%   3,857   1,853   2,153
                                                     
Visa Credit Programs                                                    
US   $282   10.1%   10.1%   $270   10.0%   10.0%   3,187   $12   11.6%   11.6%   15   206   280

International

  463   8.2%   11.4%   412   8.7%   12.3%   4,915   51   4.2%   4.3%   199   466   525
Visa Inc.   745   8.9%   10.9%   682   9.3%   11.4%   8,102   63   5.5%   5.7%   214   672   805
                                                     
Visa Debit Programs                                                    
US   $404   10.6%   10.6%   $300   12.5%   12.5%   8,031   $103   5.2%   5.2%   891   332   422

International

  591   12.6%   14.0%   107   23.9%   25.9%   2,359   484   10.4%   11.6%   2,752   848   926
Visa Inc.   994   11.8%   12.5%   407   15.3%   15.6%   10,389   587   9.4%   10.3%   3,643   1,180   1,348
                                                     
                                             
    For the 12 Months Ended June 30, 2014
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

                                             
All Visa Credit & Debit                                            
Asia Pacific   $1,925   7.3%   11.7%   $1,319   9.6%   14.0%   14,641   $606   2.7%   7.1%   3,530
Canada   253   1.3%   7.9%   233   1.5%   8.1%   2,386   20   -1.0%   5.5%   46
CEMEA   1,079   7.7%   14.3%   244   21.1%   29.1%   5,004   836   4.3%   10.7%   4,593
LAC   1,062   -0.6%   10.9%   403   1.6%   14.6%   9,626   659   -1.9%   8.7%   4,060

US

  2,836   8.6%   8.6%   2,368   9.3%   9.3%   46,352   468   5.0%   5.0%   3,638
Visa Inc.   7,155   6.4%   10.6%   4,566   8.8%   11.9%   78,010   2,589   2.4%   8.2%   15,868
                                             
Visa Credit Programs                                            
US   $1,187   10.6%   10.6%   $1,138   10.9%   10.9%   13,491   $49   5.1%   5.1%   63

International

  1,923   5.4%   11.6%   1,727   6.3%   12.6%   20,873   196   -2.1%   3.2%   751
Visa Inc.   3,110   7.3%   11.2%   2,865   8.1%   11.9%   34,364   245   -0.8%   3.6%   814
                                             
Visa Debit Programs                                            
US   $1,649   7.1%   7.1%   $1,230   7.9%   7.9%   32,861   $419   5.0%   5.0%   3,575

International

  2,396   4.7%   12.2%   472   16.0%   24.4%   10,784   1,924   2.2%   9.6%   11,479
Visa Inc.   4,045   5.6%   10.1%   1,702   10.0%   12.0%   43,646   2,344   2.7%   8.7%   15,054
                                             
     
    For the 12 Months Ended June 30, 2013
   

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                                                     
All Visa Credit & Debit                                                    
Asia Pacific   $1,793   9.9%   11.5%   $1,203   9.9%   12.0%   12,850   $591   9.9%   10.4%   3,020   592   692
Canada   249   4.6%   4.3%   229   5.3%   4.9%   2,146   20   -2.6%   -2.8%   43   31   40
CEMEA   1,003   14.6%   17.8%   201   27.7%   32.1%   3,687   801   11.7%   14.7%   4,435   291   289
LAC   1,068   5.8%   13.7%   397   9.0%   18.4%   9,097   671   4.0%   11.0%   3,856   401   430

US

  2,613   4.4%   4.4%   2,167   4.8%   4.8%   42,557   446   2.1%   2.1%   3,531   538   702
Visa Inc.   6,726   7.5%   9.4%   4,197   7.6%   9.0%   70,337   2,529   7.3%   10.1%   14,884   1,853   2,153
                                                     
Visa Credit Programs                                                    
US   $1,073   9.5%   9.5%   $1,026   9.8%   9.8%   12,140   $47   4.0%   4.0%   61   206   280

International

  1,824   7.8%   10.5%   1,624   8.7%   11.7%   18,967   200   1.1%   1.5%   766   466   525
Visa Inc.   2,897   8.4%   10.1%   2,650   9.1%   10.9%   31,106   247   1.6%   2.0%   826   672   805
                                                     
Visa Debit Programs                                                    
US   $1,540   1.0%   1.0%   $1,140   0.8%   0.8%   30,417   $399   1.8%   1.8%   3,470   332   422

International

  2,289   11.0%   15.2%   406   19.6%   24.4%   8,814   1,883   9.3%   13.4%   10,588   848   926
Visa Inc.   3,829   6.8%   8.8%   1,547   5.1%   5.8%   39,231   2,282   7.9%   11.0%   14,058   1,180   1,348
                                                     

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 based on results reported quarterly by Visa’s financial institution clients on their operating certificates. Estimates may be utilized if data is unavailable. On occasion, previously presented information may be updated.

Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Effective with the 3 months ended September 2013, Croatia moved from the CEMEA region to Visa Europe. 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. International 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, 2014           6%         7%
Mar 31, 2014           5%         8%
Dec 31, 2013           11%         12%
Sep 30, 2013           9%         11%
Jun 30, 2013           11%         11%
                       

12 Months Ended

                     
Jun 30, 2014           8%         9%
Jun 30, 2013           9%         11%
                       

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, 2014           16,662         11%
Mar 31, 2014           15,354         11%
Dec 31, 2013           15,985         13%
Sep 30, 2013           15,491         14%
Jun 30, 2013           14,972         14%
                       

12 Months Ended

                     
Jun 30, 2014           63,492         12%
Jun 30, 2013           56,554         7%
                       

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, 2014           1,890         15%
Mar 31, 2014           1,859         16%
Dec 31, 2013           1,894         20%
Sep 30, 2013           1,696         24%
Jun 30, 2013           1,648         27%
                       

12 Months Ended

                     
Jun 30, 2014           7,340         18%
Jun 30, 2013           6,199         26%

 

Source: Visa Inc.

Visa Inc.
Investor Relations:
Jack Carsky or Victoria Hyde-Dunn, 650-432-7644
[email protected]
Media Relations:
Paul Cohen, 650-432-2990
[email protected]