Visa Reports Fiscal Third Quarter 2010 Financial Results
Visa has announced financial results for its fiscal third quarter 2010 ended June 30, 2010 with GAAP net operating revenue in the fiscal third quarter of 2010 of $2.0 billion, an increase of 23% over the prior year. According to Visa, revenue was "driven by strong contributions across all revenue categories, in particular data processing and international transaction revenues."
Some highlights:
- Payments volume growth, on a constant dollar basis for the three months ended March 31, 2009 on which fiscal third quarter service revenue is recognized, was a positive 13% over the prior year at $745 billion.
- Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2010, was a positive 14% over the prior year at $803 billion.
- Cross border volume growth, on a constant dollar basis, was a positive 17% for the three months ended June 30, 2010.
- Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2010 totaled 11.7 billion, were a positive 14% increase over the prior year.
Visa delivered a solid financial performance during our fiscal third quarter as we saw continued improvements in global cross border and payments volume growth," said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. "As we look to the remainder of our fiscal 2010 year, we remain focused on integrating our recent acquisition of CyberSource, maintaining strong financial performance and expense control discipline.""It goes without saying, the United States debit market will undergo changes following implementation of the Wall Street Reform and Consumer Protection Act next year," added Saunders. "While it is too early to fully and accurately gauge the impact of the legislation, Visa has demonstrated an ability to manage our business through periods of change. The global shift from cash and checks to digital currency is a powerful force that continues unabated, providing tangible benefits to consumers, merchants, and governments worldwide. I continue to have strong confidence in our prospects for long-term growth driven by Visa's highly resilient network business model, our continued investment in innovation and the expansion of our global reach."
Notable Events:
On July 21, 2010, the Company completed its acquisition of CyberSource Corporation, a leading provider of electronic payment, risk management and payment security solutions to online merchants, at a price of $26.00 per common share, or total consideration of approximately $2.0 billion paid with cash on hand. With the addition of CyberSource, Visa will offer merchants and financial institutions eCommerce solutions that include enhanced online payment processing capabilities, payment routing, fraud protection services and secure data hosting.
Well it's nice to know someone had a good year in spite of the sluggish economy. But then when you consider all the card issuers have jacked up their interest rates beyond 20% it’s no wonder they had a 23% growth compared with last year.
Posted by: Tom H | July 30, 2010 at 06:09 AM