S&P 500 1,930.67 0.00
Gold$1,285.90 $0.40
Nasdaq 4,369.77 0.00
Crude Oil $66,900.00      $-70.00
  
EARNINGS CALLS TRANSCRIPTS

Visa Inc. Second Quarter Earnings Call Highlights


Author: 123jump.com Staff
ticker.com
Last Update: 2:35 PM ET May 17 2012
Visa Inc. reported fiscal second quarter revenues increased 15% and net income surged 21% and raised earnings outlook in the current year and reaffirmed 2013 guidance.

 Company Website Links:
Investor Relations Financial Info Corporate / History Profile Executives Products Services
You need to upgrade your Flash Player


You need to upgrade your Flash Player

Visa Inc. (V), the global payment technology provider reported second quarter revenues increased 15% to $2.6 billion from $2.2 billion in the same quarter a year ago.

Net income in the quarter surged 21% to $1.29 billion or $1.91 per diluted share compared to $881 million or $1.23 per share in the year ago.

Quarterly Earnings

- Net operating revenues increased 15% from a year ago to $2.6 billion.
- Adjusted net income increased 23% to $1.1 billion.
- Earnings per share increased 30% to $1.60.
- Client incentives in the quarter totaled 16% of gross revenue, below full year guidance and in line with expectations for the first half fiscal year.

- Service revenue was $1.2 billion, up 13% over the prior year period.
- Data processing revenue was $922 million, up 12% over the prior year''s quarter.
- International transaction revenue was up 17% to $733 million.

- Operating expenses increase 13% to $972 million and operating income gained 17%.
- Annual free cash flow in the quarter was greater than $4 billion.
- Cash, cash equivalents and investment securities of about $8.9 billion.

- Adjusted net income in the quarter increased 23% to $1.1 billion.
- Adjusted diluted earnings per share soared 30% to $1.60.
- Total operating expenses for the quarter grew 13% to $972 million.

- Marketing expenses of $170 million reflect a larger weighting to the second half of the year.
- Operating margin for the quarter was 62%, ahead of our full year guidance of 60%.
- Capital expenditures were $61 million in the quarter.

- Adjusted earnings per share accounted for incremental 31 cents from the re-measurement of net deferred tax liabilities due to the change in state tax rate and 5 cents incremental from the catch up effect of the lower ongoing tax rate.

- Worldwide credit payment volumes increased 14% and debit volumes rose 7%.
- Cross border volumes worldwide increased 16%.
- Processed transaction rose 8%.

- Visa’s total net revenues increased 15% driven by 10% increase in U.S. revenues and 21% increase in the rest of the world revenues.

- U.S. revenues growth has been supported by four consecutive quarters of double digit credit payment volume growth.

- U.S. payment volumes increased 6% and Visa has now 9 of the top 10 issuers signed from fiscal 2015 and beyond and from the volume perspective, equating to more than 75% of Visa’s credit volume.

- Visa finalized multi-year extension of co-branded card with Alaska Airlines.
- the recent merger of United and Continental Airlines created single MileagePlus credit card portfolio and with Visa as exclusive brand.

- Visa Easy Payment Service will extend its no-signature-required program in the U.S. to selected merchant categories and will increase the purchase limit to $50 from $25 to discount stores and supermarkets.

- U.S. aggregate debit volume growth increase slowed to 2% and has declined in April and Interlink is bearing the brunt of the regulatory impact.

- Visa debit business has two segments, Visa Debit or Visa Check Card and Interlink.
- Visa Debit saw a slowing volume growth in the quarter as issuers deemphasize debit reward programs.
- Interlink posted negative volume growth in each of the month in the quarter.
- In the quarter Interlink contributed to 10% of U.S. debit revenues and 2% of total company revenues.

- Visa signed with 14 of the 15 largest debit issuers to agreements that until at least 2015.

- On March 13, prior to the April 1 implementation date, the U.S. Department of Justice issued a civil investigative demand and asked additional information about PIN-authenticated Visa Debit and elements of debit strategies.

- Visa has received 4 other requests since 2007 and took between 9 and 24 months to complete and all have been resolved.


  1  2  3  4  5
Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc