Visa Inc. Reports Fiscal Third Quarter 2019 Results
San Francisco, CA, July 23, 2019 - Visa Inc. (NYSE: V)
- Net income of $3.1B or $1.37 per share
- Net revenues of $5.8B, an increase of over 11%
- Growth in underlying business drivers was strong, accelerating from the prior quarter
- Returned $2.7B of capital to shareholders in the form of share repurchases and dividends
Q3 2019 Results
(Ending June 30, 2019)
YoY | ||
in billions, except percentages and per share data | USD | Change |
Net Revenues | $5.8 | 11% |
GAAP Net Income | $3.1 | 33% |
Adjusted Net Income(1) | $3.1 | 11% |
GAAP Earnings Per Share | $1.37 | 36% |
Adjusted Earnings Per Share(1) | $1.37 | 14% |
- Adjusted Net Income and Adjusted Earnings Per Share exclude a special item in the prior fiscal year. There were no comparable adjustments in the current fiscal year.
Q3 2019 Key Business Drivers
(YoY growth, volume in constant dollars)
Alfred F. Kelly, Jr., Chairman and Chief Executive
Officer, Visa Inc., commented on the results:
"Visa had an excellent third quarter in terms of accelerating business growth while advancing our strategy through acquisitions, investments and partnerships. Recently, Visa closed or signed definitive agreements for four acquisitions that will enhance our capabilities. We also extended some impactful client partnerships, established new meaningful fintech commercial agreements and made significant investments in the business that will broaden the reach of our network. Collectively, these actions will help our growth for years to come."
Payments Volume | Cross-Border Volume | Processed Transactions |
+9% | +7% | +12% |
Fiscal Third Quarter 2019 - Financial Highlights
GAAP net income in the fiscal third quarter was $3.1 billion or $1.37 per share, increases of 33% and 36%, respectively, over prior year's results. On an adjusted basis, the Company's prior year financial results exclude a $600 million litigation provision and the related tax benefit associated with the interchange multi district litigation case. Excluding this special item, adjusted net income and adjusted earnings per share increased 11% and 14%, respectively, over prior year's results (refer to the accompanying financial tables for further details and a reconciliation of the non-GAAP measures presented). Adjusted earnings per share growth was approximately 18% on a constant-dollar basis. All references to earnings per share assume fully-diluted class A share count.
Net revenues in the fiscal third quarter were $5.8 billion, an increase of over 11%, driven by continued growth in payments volume, cross-border volume and processed transactions. Net revenues growth was approximately 13% on a constant-dollar basis. The Company adopted the new revenue accounting standard effective October 1, 2018, which positively impacted reported net revenues growth by approximately 1.5 percentage points.
Payments volume for the three months ended March 31, 2019, on which fiscal third quarter service revenues are recognized, grew 8% over the prior year on a constant-dollar basis.
Payments volume for the three months ended June 30, 2019, grew 9% over the prior year on a constant-dollar basis.
Cross-border volume growth, on a constant-dollar basis, was 7% for the three months ended June 30, 2019. Excluding cross- border transactions within Europe, which have revenue yields similar to Europe's domestic volume, growth was 9% in the quarter.
Total processed transactions, which represent transactions processed by Visa, for the three months ended June 30, 2019, were 35.4 billion, a 12% increase over the prior year.
Fiscal third quarter service revenues were $2.4 billion, an increase of 10% 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 13% over the prior year to $2.7 billion. International transaction revenues grew 8% over the prior year to $2.0 billion. Other revenues of $342 million rose 49% over the prior year. Client incentives, which are a contra-revenue item, were $1.5 billion and represented 20.9% of gross revenues.
GAAP operating expenses were $1.9 billion for the fiscal third quarter, an 18% decrease over the prior year's results, including the special item. Excluding the $600 million operating expense impact of the special item, adjusted operating expense grew 10% over the prior year, primarily driven by general and administrative and marketing costs. The new revenue accounting standard increased GAAP and adjusted operating expense growth by 2.0 and 2.5 percentage points, respectively.
Non-operating expense was $42 million for the fiscal third quarter, including $9 million of net investment gains.
Effective income tax rate was 19.8% for the quarter ended June 30, 2019.
Cash, cash equivalents and investment securities were $14.1 billion as of June 30, 2019.
The weighted-average number of diluted shares of class A common stock outstanding was 2.27 billion for the quarter ended June 30, 2019.
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Other Notable Items
On May 8, 2019, Visa acquired control of Earthport and on July 4, 2019, Visa reached full ownership. Earthport provides cross- border payment services to banks, money transfer service providers and businesses. With Earthport, Visa can reach over 99% of consumer and small business bank accounts in 88 countries, including the top 50 markets.
On June 25, 2019, Visa announced it signed a definitive agreement to acquire the token services and ticketing businesses of Rambus. These businesses will enable Visa to extend the security and convenience of tokenization to all types of transactions, including the ability to support domestic card networks and account-based and real-time payments systems.
On June 28, 2019, Visa announced it signed a definitive agreement to acquire Verifi, a leader in technology solutions that reduce chargebacks. Verifi's dispute resolution tools combined with Visa's suite of fraud management and risk solutions will give buyers and sellers intelligent, data-driven capabilities that reduce the time and cost of dispute resolutions and improve the overall customer experience.
On July 17, 2019, Visa announced it completed the acquisition of Payworks, a provider of next-generation payment gateway software for the point-of-sale. This adds in-store payment processing to Cybersource's digital payment platform to create a fully integrated, omnichannel payment acceptance solution that will enable merchants and acquirers to offer a unified payment experience whether their customers are paying in-store,in-app or online.
In connection with the purchase of Visa Europe in June 2016, Visa was required to pay an additional €1.0 billion, plus 4% compound annual interest, on the third anniversary of the closing of the acquisition. In June 2019, Visa paid €1.1 billion in fulfillment of this obligation.
During the three months ended June 30, 2019, Visa repurchased 12.9 million shares of class A common stock, at an average price of $163.59 per share, using $2.1 billion of cash on hand. In the nine months ended June 30, 2019, Visa repurchased a total of 43.8 million shares of class A common stock, at an average price of $147.83 per share, using $6.5 billion of cash on hand. Visa had $6.2 billion of authorized funds available for share repurchase as of June 30, 2019.
On July 15, 2019, the board of directors declared a quarterly cash dividend of $0.25 per share of class A common stock (determined in the case of class B and C common stock and series B and C convertible participating preferred stock on an as- converted basis) payable on September 3, 2019, to all holders of record as of August 16, 2019.
Financial Outlook for Fiscal Full-Year 2019
- Annual net revenues growth: Low double-digits on a nominal-dollar basis, with approximately 1.5 percentage points of negative foreign currency impact and over 1.0 percentage point of positive impact from the new revenue accounting standard
- Client incentives as a percentage of gross revenues: 21.5% to 22.0% range
- Annual operating expense growth: Low single-digit decrease on a GAAP basis and an approximately 10% increase adjusted for special items in fiscal 2018 (see note below). GAAP and non-GAAP growth includes an approximately 2.5 percentage point increase from the new revenue accounting standard
- Effective tax rate: 19.5% to 20.0% range
- Annual diluted class A common stock earnings per share growth: Low twenties on a GAAP nominal-dollar basis and mid-to- high teens on an adjusted, non-GAAPnominal-dollar basis (see note below). Both include approximately 2.0 percentage points of negative foreign currency impact
Note: Annual adjusted operating expense growth is derived from adjusted full-year 2018 operating expenses of $6.9 billion. Annual adjusted diluted class A common stock earnings per share growth is derived from adjusted full-year 2018 earnings per share results of $4.61. Refer to the accompanying financial tables for details and a reconciliation of the adjusted fiscal full-year 2018 results.
3
Fiscal Third Quarter 2019 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 for 30 days. Investor information, including supplemental financial information, is also available at http://investor.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 that relate to, among other things, our future operations, prospects, developments, strategies, business growth and financial outlook for fiscal full-year 2019. Forward-looking statements generally are identified by words such as "believes," "estimates," "expects," "intends," "may," "projects," "outlook", "could," "should," "will," "continue" and other similar expressions. All statements other than statements of historical fact could be forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond our control and are difficult to predict.
Actual results could differ materially from those expressed in, or implied by, our forward-looking statements due to a variety of factors, including, but not limited to:
- increased oversight and regulation of the global payments industry and our business;
- impact of government-imposed restrictions on international payment systems;
- outcome of tax, litigation and governmental investigation matters;
- increasingly intense competition in the payments industry, including competition for our clients and merchants;
- proliferation and continuous evolution of new technologies and business models;
- our ability to maintain relationships with our clients, merchants and other third parties;
- brand or reputational damage;
- management changes;
- impact of global economic, political, market and social events or conditions;
- exposure to loss or illiquidity due to settlement guarantees;
- uncertainty surrounding the impact of the United Kingdom's withdrawal from the European Union;
- a disruption, failure, breach or cyber-attack of our networks or systems;
- our ability to successfully integrate and manage our acquisitions and other strategic investments; and
- other factors described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2018, and our subsequent reports on Forms 10-Q and 8-K.
Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new information, future events or otherwise.
About Visa Inc.
Visa Inc. (NYSE: V) is the world's leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. Our relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit usa.visa.com/about-visa.html, usa.visa.com/visa- everywhere/blog.html and @VisaNews.
Contacts | Investor Relations | Media Relations | |
Mike Milotich, 650-432-7644, | Will Stickney, 415-805-4892, | ||
InvestorRelations@visa.com | Press@visa.com | ||
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Fiscal Third Quarter 2019 - Financial Summary
Q3 FISCAL 2019 INCOME STATEMENT SUMMARY
(in millions, except percentages and per | Three Months Ended | YoY Change | ||||
June 30, 2019 | ||||||
share data) | ||||||
GAAP | Adjusted | GAAP | Adjusted | |||
Revenues | ||||||
Service revenues | $ | 2,405 | $ | 2,405 | 10% | 10% |
Data processing revenues | 2,662 | 2,662 | 13% | 13% | ||
International transaction revenues | 1,977 | 1,977 | 8% | 8% | ||
Other revenues | 342 | 342 | 49% | 49% | ||
Client incentives | (1,546) | (1,546) | 13% | 13% | ||
Net revenues | 5,840 | 5,840 | 11% | 11% | ||
Operating Expenses | ||||||
Personnel | 872 | 872 | 2% | 2% | ||
Marketing | 282 | 282 | 18% | 18% | ||
Network and processing | 184 | 184 | 9% | 9% | ||
Professional fees | 113 | 113 | 1% | 1% | ||
Depreciation and amortization | 165 | 165 | 9% | 9% | ||
General and administrative | 315 | 315 | 37% | 37% | ||
Litigation provision | 1 | 1 | (100%) | NM | ||
Total operating expenses | 1,932 | 1,932 | (18%) | 10% | ||
Operating income | 3,908 | 3,908 | 35% | 12% | ||
Non-operating expense | (42) | (42) | (43%) | (43%) | ||
Effective tax rate | 19.8% | 19.8% | +3 ppt | +2 ppt | ||
Net income | $ | 3,101 | $ | 3,101 | 33% | 11% |
Earnings per share | $ | 1.37 | $ | 1.37 | 36% | 14% |
NM - Not Meaningful |
Q3 FISCAL 2019 KEY BUSINESS DRIVERS
YoY Change | |||
Constant | Nominal | ||
Payments volume | 9% | 5% | |
Cross-border volume | 7% | 2% | |
Processed transactions | 12% | 12% |
5
Visa Inc. Consolidated Balance Sheets (unaudited)
June 30, | September 30, | ||||||||||
2019 | 2018 | ||||||||||
(in millions, except par value data) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 7,912 | $ | 8,162 | |||||||
Restricted cash equivalents-U.S. litigation escrow | 902 | 1,491 | |||||||||
Investment securities | 3,265 | 3,547 | |||||||||
Settlement receivable | 1,689 | 1,582 | |||||||||
Accounts receivable | 1,531 | 1,208 | |||||||||
Customer collateral | 1,668 | 1,324 | |||||||||
Current portion of client incentives | 690 | 340 | |||||||||
Prepaid expenses and other current assets | 648 | 562 | |||||||||
Total current assets | 18,305 | 18,216 | |||||||||
Investment securities | 2,918 | 4,082 | |||||||||
Client incentives | 1,854 | 538 | |||||||||
Property, equipment and technology, net | 2,549 | 2,472 | |||||||||
Goodwill | 15,313 | 15,194 | |||||||||
Intangible assets, net | 27,272 | 27,558 | |||||||||
Other assets | 2,038 | 1,165 | |||||||||
Total assets | $ | 70,249 | $ | 69,225 | |||||||
Liabilities | |||||||||||
Accounts payable | $ | 150 | $ | 183 | |||||||
Settlement payable | 2,420 | 2,168 | |||||||||
Customer collateral | 1,668 | 1,325 | |||||||||
Accrued compensation and benefits | 687 | 901 | |||||||||
Client incentives | 3,690 | 2,834 | |||||||||
Accrued liabilities | 1,358 | 1,160 | |||||||||
Deferred purchase consideration | - | 1,300 | |||||||||
Accrued litigation | 856 | 1,434 | |||||||||
Total current liabilities | 10,829 | 11,305 | |||||||||
Long-term debt | 16,694 | 16,630 | |||||||||
Deferred tax liabilities | 4,930 | 4,618 | |||||||||
Other liabilities | 2,801 | 2,666 | |||||||||
Total liabilities | 35,254 | 35,219 | |||||||||
Equity | |||||||||||
Preferred stock, $0.0001 par value, 25 shares authorized and 5 shares issued and outstanding as follows: | |||||||||||
Series A convertible participating preferred stock, none issued (the "class A equivalent preferred stock") | - | - | |||||||||
Series B convertible participating preferred stock, 2 shares issued and outstanding at June 30, 2019 and September | 2,285 | 2,291 | |||||||||
30, 2018 (the "UK&I preferred stock") | |||||||||||
Series C convertible participating preferred stock, 3 shares issued and outstanding at June 30, 2019 and September | 3,177 | 3,179 | |||||||||
30, 2018 (the "Europe preferred stock") | |||||||||||
Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 1,729 and 1,768 shares issued and outstanding at | - | - | |||||||||
June 30, 2019 and September 30, 2018, respectively | |||||||||||
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at June 30, 2019 and | - | - | |||||||||
September 30, 2018 | |||||||||||
Class C common stock, $0.0001 par value, 1,097 shares authorized, 12 shares issued and outstanding at June 30, 2019 and | - | - | |||||||||
September 30, 2018, respectively | |||||||||||
Right to recover for covered losses | (169) | (7) | |||||||||
Additional paid-in capital | 16,552 | 16,678 | |||||||||
Accumulated income | 13,040 | 11,318 | |||||||||
Accumulated other comprehensive income (loss), net: | |||||||||||
Investment securities | 6 | (17) | |||||||||
Defined benefit pension and other postretirement plans | (66) | (61 | ) | ||||||||
Derivative instruments | 24 | 60 | |||||||||
Foreign currency translation adjustments | 146 | 565 | |||||||||
Total accumulated other comprehensive income (loss), net | 110 | 547 | |||||||||
Total equity | 34,995 | 34,006 | |||||||||
Total liabilities and equity | $ | 70,249 | $ | 69,225 |
6
Visa Inc. Consolidated Statements of Operations (unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||
Net revenues | $ | 5,840 | $ | 5,240 | $ | 16,840 | $ | 15,175 | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Personnel | 872 | 852 | 2,573 | 2,355 | ||||||||||||||||
Marketing | 282 | 240 | 799 | 724 | ||||||||||||||||
Network and processing | 184 | 169 | 528 | 498 | ||||||||||||||||
Professional fees | 113 | 112 | 305 | 312 | ||||||||||||||||
Depreciation and amortization | 165 | 152 | 484 | 450 | ||||||||||||||||
General and administrative | 315 | 230 | 855 | 688 | ||||||||||||||||
Litigation provision | 1 | 600 | 30 | 600 | ||||||||||||||||
Total operating expenses | 1,932 | 2,355 | 5,574 | 5,627 | ||||||||||||||||
Operating income | 3,908 | 2,885 | 11,266 | 9,548 | ||||||||||||||||
Non-operating Income (Expense) | ||||||||||||||||||||
Interest expense, net | (128 | ) | (155) | (413) | (462) | |||||||||||||||
Investment income and other | 86 | 82 | 320 | 182 | ||||||||||||||||
Total non-operating income (expense) | (42) | (73) | (93) | (280) | ||||||||||||||||
Income before income taxes | 3,866 | 2,812 | 11,173 | 9,268 | ||||||||||||||||
Income tax provision | 765 | 483 | 2,118 | 1,812 | ||||||||||||||||
Net income | $ | 3,101 | $ | 2,329 | $ | 9,055 | $ | 7,456 | ||||||||||||
Basic Earnings Per Share | ||||||||||||||||||||
Class A common stock | $ | 1.37 | $ | 1.00 | $ | 3.98 | $ | 3.20 | ||||||||||||
Class B common stock | $ | 2.23 | $ | 1.66 | $ | 6.49 | $ | 5.27 | ||||||||||||
Class C common stock | $ | 5.48 | $ | 4.02 | $ | 15.92 | $ | 12.78 | ||||||||||||
Basic Weighted-average Shares Outstanding | ||||||||||||||||||||
Class A common stock | 1,735 | 1,784 | 1,748 | 1,798 | ||||||||||||||||
Class B common stock | 245 | 245 | 245 | 245 | ||||||||||||||||
Class C common stock | 12 | 12 | 12 | 12 | ||||||||||||||||
Diluted Earnings Per Share | ||||||||||||||||||||
Class A common stock | $ | 1.37 | $ | 1.00 | $ | 3.97 | $ | 3.19 | ||||||||||||
Class B common stock | $ | 2.23 | $ | 1.65 | $ | 6.48 | $ | 5.26 | ||||||||||||
Class C common stock | $ | 5.48 | $ | 4.01 | $ | 15.90 | $ | 12.76 | ||||||||||||
Diluted Weighted-average Shares Outstanding | ||||||||||||||||||||
Class A common stock | 2,265 | 2321 | 2,278 | 2,337 | ||||||||||||||||
Class B common stock | 245 | 245 | 245 | 245 | ||||||||||||||||
Class C common stock | 12 | 12 | 12 | 12 |
7
Visa Inc. Consolidated Statements of Cash Flows (unaudited)
Nine Months Ended
June 30,
2019 | 2018 | ||||||||||
(in millions) | |||||||||||
Operating Activities | |||||||||||
Net income | $ | 9,055 | $ | 7,456 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Client incentives | 4,480 | 3,989 | |||||||||
Share-based compensation | 321 | 242 | |||||||||
Depreciation and amortization of property, equipment, technology and intangible assets | 484 | 450 | |||||||||
Deferred income taxes | 234 | (1,133 | ) | ||||||||
VE territory covered loses incurred | (170) | (9) | |||||||||
Other | (204) | (38 | ) | ||||||||
Change in operating assets and liabilities: | |||||||||||
Settlement receivable | (127) | (239 | ) | ||||||||
Accounts receivable | (319) | (82) | |||||||||
Client incentives | (4,778) | (3,483 | ) | ||||||||
Other assets | (172) | 97 | |||||||||
Accounts payable | (22) | (18 | ) | ||||||||
Settlement payable | 280 | 379 | |||||||||
Accrued and other liabilities | 257 | 1,408 | |||||||||
Accrued litigation | (577) | 446 | |||||||||
Net cash provided by operating activities | 8,742 | 9,465 | |||||||||
Investing Activities | |||||||||||
Purchases of property, equipment and technology | (507) | (523 | ) | ||||||||
Proceeds from sales of property, equipment and technology | - | 14 | |||||||||
Investment securities: | |||||||||||
Purchases | (2,321) | (3,354) | |||||||||
Proceeds from maturities and sales | 3,870 | 2,789 | |||||||||
Acquisitions, net of cash and restricted cash acquired | (136) | (196) | |||||||||
Purchases of / contributions to other investments | (482) | (35) | |||||||||
Proceeds / distributions from other investments | 10 | - | |||||||||
Other investing activities | (21) | - | |||||||||
Net cash provided by (used in) investing activities | 413 | (1,305) | |||||||||
Financing Activities | |||||||||||
Repurchase of class A common stock | (6,480) | (5,604) | |||||||||
Repayments of long-term debt | - | (1,750) | |||||||||
Dividends paid | (1,706) | (1,435) | |||||||||
Cash proceeds from issuance of common stock under employee equity plans | 127 | 135 | |||||||||
Restricted stock and performance-based shares settled in cash for taxes | (106) | (90) | |||||||||
Net cash used in financing activities | (9,401) | (8744) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (62) | (89) | |||||||||
Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents | (308) | (673) | |||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 10,977 | 12,011 | |||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 10,669 | $ | 11,338 | |||||||
Supplemental Disclosure | |||||||||||
Income taxes paid, net of refunds | $ | 1,992 | $ | 1,649 | |||||||
Interest payments on debt | $ | 503 | $ | 510 | |||||||
Accruals related to purchases of property, equipment and technology | $ | 87 | $ | 35 |
8
Visa Inc. Fiscal 2019 and 2018 Quarterly Results of Operations (unaudited)
Fiscal 2019 Quarter Ended | Fiscal 2018 Quarter Ended | |||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||
2019 | 2019 | 2018 | 2018 | 2018 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||||
Net revenues | $ | 5,840 | $ | 5,494 | $ | 5,506 | $ | 5,434 | $ | 5,240 | ||||||||||||
Operating Expenses | ||||||||||||||||||||||
Personnel | 872 | 894 | 807 | 815 | 852 | |||||||||||||||||
Marketing | 282 | 241 | 276 | 264 | 240 | |||||||||||||||||
Network and processing | 184 | 171 | 173 | 188 | 169 | |||||||||||||||||
Professional fees | 113 | 101 | 91 | 134 | 112 | |||||||||||||||||
Depreciation and amortization | 165 | 160 | 159 | 163 | 152 | |||||||||||||||||
General and administrative | 315 | 264 | 276 | 457 | 230 | |||||||||||||||||
Litigation provision | 1 | 22 | 7 | 7 | 600 | |||||||||||||||||
Total operating expenses | 1,932 | 1,853 | 1,789 | 2,028 | 2,355 | |||||||||||||||||
Operating income | 3,908 | 3,641 | 3,717 | 3,406 | 2,885 | |||||||||||||||||
Non-operating Income (Expense) | ||||||||||||||||||||||
Interest expense, net | (128) | (140) | (145) | (150) | (155 | ) | ||||||||||||||||
Investment income and other | 86 | 176 | 58 | 282 | 82 | |||||||||||||||||
Total non-operating income (expense) | (42) | 36 | (87) | 132 | (73) | |||||||||||||||||
Income before income taxes | 3,866 | 3,677 | 3,630 | 3,538 | 2,812 | |||||||||||||||||
Income tax provision | 765 | 700 | 653 | 693 | 483 | |||||||||||||||||
Net income | $ | 3,101 | $ | 2,977 | $ | 2,977 | $ | 2,845 | $ | 2,329 |
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Visa Inc. Reconciliation of Non-GAAP Financial Results (unaudited)
Our financial results for the three and nine months ended June 30, 2018 reflected the impact of certain significant items that we believe were not indicative of our operating performance in these or future periods, as they were either non-recurring or had no cash impact. As such, we believe the presentation of adjusted financial results excluding the following items provides a clearer understanding of our operating performance for the periods presented. There were no comparable adjustments recorded for the three and nine months ended June 30, 2019.
- Litigation provision. During the three and nine months ended June 30, 2018, we recorded a litigation provision of $600 million and related tax benefits of $137 million, associated with the interchange multidistrict litigation. The tax impact is determined by applying applicable federal and state tax rates to the litigation provision. Under the U.S. retrospective responsibility plan, we recover the monetary liabilities related to the U.S. covered litigation through a reduction to the conversion rate of our class B common stock to shares of class A common stock.
- Remeasurement of deferred tax balances. During the nine months ended June 30, 2018, in connection with the Tax Cuts and Jobs Act's reduction of the corporate income tax rate, we remeasured our net deferred tax liabilities as of the enactment date, resulting in the recognition of a non-recurring,non-cash income tax benefit of $1.1 billion.
- Transition tax on foreign earnings. During the nine months ended June 30, 2018, in connection with the Tax Cuts and Jobs Act's requirement that we include certain untaxed foreign earnings of non-U.S. subsidiaries in our fiscal 2018 taxable income, we recorded a one-time transition tax estimated to be approximately $1.1 billion.
Adjusted financial results are non-GAAP financial measures and should not be relied upon as substitutes for measures calculated in accordance with U.S. GAAP. The following table reconciles our as-reported financial measures, calculated in accordance with U.S. GAAP, to our respective non-GAAP adjusted financial measures for the three and nine months ended June 30, 2018. There were no comparable adjustments recorded for the three and nine months ended June 30, 2019.
Three Months Ended June 30, 2018 | |||||||||||||||||||
(in millions, except percentages and per share | Operating | Operating | Income Before | Income Tax | Effective | Diluted | |||||||||||||
Margin | Income Tax | Earnings Per | |||||||||||||||||
data) | Expenses | (1),(2) | Income Taxes | Provision | Rate(1) | Net Income | Share(1) | ||||||||||||
As reported | $ | 2,355 | 55 | % | $ | 2,812 | $ | 483 | 17.2 % | $ | 2,329 | $ | 1.00 | ||||||
Litigation provision | (600) | 11 | % | 600 | 137 | 463 | 0.20 | ||||||||||||
As adjusted | $ | 1,755 | 67 | % | $ | 3,412 | $ | 620 | 18.2 % | $ | 2,792 | $ | 1.20 | ||||||
Nine Months Ended June 30, 2018 | |||||||||||||||||||
(in millions, except percentages and per share | Operating | Operating | Income Before | Income Tax | Effective | Diluted | |||||||||||||
Margin | Income Tax | Earnings Per | |||||||||||||||||
data) | Expenses | (1),(2) | Income Taxes | Provision | Rate(1) | Net Income | Share(1) | ||||||||||||
As reported | $ | 5,627 | 63 | % | $ | 9,268 | $ | 1,812 | 19.5 % | $ | 7,456 | $ | 3.19 | ||||||
Litigation provision | (600) | 4 | % | 600 | 137 | 463 | 0.20 | ||||||||||||
Remeasurement of deferred tax balances | - | - % | - | 1,133 | (1,133) | (0.49) | |||||||||||||
Transition tax on foreign earnings | - | - % | - | (1,147) | 1,147 | 0.49 | |||||||||||||
As adjusted | $ | 5,027 | 67 | % | $ | 9,868 | $ | 1,935 | 19.6 % | $ | 7,933 | $ | 3.39 | ||||||
- Figures in the table may not recalculate exactly due to rounding. Effective income tax rate, diluted earnings per share and their respective totals are calculated based on unrounded numbers.
- Operating margin is calculated as operating income divided by net operating revenues
10
Visa Inc. Reconciliation of Non-GAAP Financial Results - continued (unaudited)
Our financial outlook for fiscal full-year 2019 annual operating expense growth and annual diluted class A common stock earnings per share growth are based on adjusted non-GAAP fiscal full-year 2018 results, which are reconciled to their closest comparable U.S. GAAP financial measure below.
Our financial results during the twelve months ended September 30, 2018 reflected the impact of certain significant items that we believe were not indicative of our ongoing operating performance in these or future periods as they were either non-recurring or had no cash impact. As such, we believe the presentation of adjusted financial results excluding the following items provides a clearer understanding of our operating performance for the periods presented.
- Charitable contribution. During the three months ended September 30, 2018, we donated available-for-sale investment securities to the Visa Foundation and recognized a non-cash general and administrative expense of $195 million, before tax, and recorded $193 million of realized gain on the donation of these investments as non-operating income. Net of the related cash tax benefit of $51 million, determined by applying applicable tax rates, adjusted net income decreased by $49 million.
- Litigation provision. During the twelve months ended September 30, 2018, we recorded a litigation provision of $600 million and related tax benefits of $137 million associated with the interchange multidistrict litigation. The tax impact is determined by applying applicable federal and state tax rates to the litigation provision. Under the U.S. retrospective responsibility plan, we recover the monetary liabilities related to the U.S. covered litigation through a reduction to the conversion rate of our class B common stock to shares of class A common stock.
- Remeasurement of deferred tax balances. During the twelve months ended September 30, 2018, in connection with the Tax Cuts and Jobs Act's reduction of the corporate income tax rate, we remeasured our net deferred tax liabilities as of the enactment date, resulting in the recognition of a non-recurring,non-cash income tax benefit of $1.1 billion.
- Transition tax on foreign earnings. During the twelve months ended September 30, 2018, in connection with the Tax Cuts and Jobs Act's requirement that we include certain untaxed foreign earnings of non-U.S. subsidiaries in our fiscal 2018 taxable income, we recorded a one-time transition tax estimated to be approximately $1.1 billion.
Adjusted financial results are non-GAAP financial measures and should not be relied upon as substitutes for measures calculated in accordance with U.S. GAAP. The following table reconciles our as-reported financial measures, calculated in accordance with U.S. GAAP, to our respective non-GAAP adjusted financial measures for the twelve months ended September 30, 2018.
Twelve Months Ended September 30, 2018 | ||||||||||||||||||||||
Operating | Non- | Income | Effective | Diluted | ||||||||||||||||||
(in millions, except percentages and per share | Operating | operating | Income Tax | |||||||||||||||||||
Margin | (Expense) | Before | Income Tax | Net Income | Earnings Per | |||||||||||||||||
data) | Expenses | (1),(2) | Income | Income Taxes | Provision | Rate(1) | Share(1) | |||||||||||||||
As reported | $ | 7,655 | 63 % | (148 ) | $ | 12,806 | $ | 2,505 | 19.6 % | $ | 10,301 | $ | 4.42 | |||||||||
Charitable contribution | (195) | 1 % | (193 ) | 2 | 51 | (49 ) | (0.02 ) | |||||||||||||||
Litigation provision | (600) | 3 % | - | 600 | 137 | 463 | 0.20 | |||||||||||||||
Remeasurement of deferred tax liability | - | - % | - | - | 1,133 | (1,133) | (0.49 ) | |||||||||||||||
Transition tax on foreign earnings | - | - % | - | - | (1,147) | 1,147 | 0.49 | |||||||||||||||
As adjusted | ||||||||||||||||||||||
$ | 6,860 | 67 % | (341 ) | $ | 13,408 | $ | 2,679 | 20.0 % | $ | 10,729 | $ | 4.61 |
- Figures in the table may not recalculate exactly due to rounding. Operating margin, effective income tax rate, diluted earnings per share and their respective totals are calculated based on unrounded numbers.
- Operating margin is calculated as operating income divided by total operating revenues.
11
Operational Performance Data
The tables below provide information regarding the available operational results for the 3 months ended June 30, 2019, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 2019 and 2018, for cards and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands.
1. Branded Volume and Transactions
The tables present regional total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands and excludes Europe co-badged volume and transactions for all periods. 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, 2019 | |||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | Accounts | Cards | |||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions | |||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | |||||||
All Visa Credit & Debit | (0.4%) | 5.4% | 7,496 | $117 | (7.9%) | (5.8%) | 987 | 3 | 5 | ||||||||||
Asia Pacific | $601 | (1.9%) | 3.0% | $484 | |||||||||||||||
Canada | 74 | 1.6% | 5.6% | 69 | 2.0% | 6.0% | 1,014 | 6 | (3.0%) | 0.7% | 11 | 63 | 63 | ||||||
CEMEA | 297 | 5.4% | 8.9% | 125 | 18.3% | 22.1% | 5,123 | 172 | (2.3%) | 1.0% | 1,244 | 3 | 3 | ||||||
LAC | 233 | (2.6%) | 7.5% | 104 | 2.4% | 15.8% | 3,612 | 130 | (6.3%) | 1.6% | 1,197 | 2 | 2 | ||||||
US | 1,166 | 7.7% | 7.7% | 1,020 | 8.8% | 8.8% | 18,620 | 146 | 1.1% | 1.1% | 940 | 6 | 7 | ||||||
Europe | 560 | (3.2%) | 4.6% | 429 | 0.2% | 7.8% | 10,328 | 130 | (13.2%) | (4.8%) | 987 | 19 | 23 | ||||||
Visa Inc. | 2,931 | 2.2% | 6.2% | 2,230 | 4.9% | 8.7% | 46,193 | 701 | (5.6%) | (1.2%) | 5,366 | 97 | 102 | ||||||
Visa Credit Programs | |||||||||||||||||||
US | $542 | 6.9% | 6.9% | $528 | 7.0% | 7.0% | 6,400 | $14 | 4.2% | 4.2% | 15 | - | - | ||||||
International | 739 | (0.8%) | 5.9% | 691 | (0.4%) | 6.4% | 10,735 | 49 | (6.8%) | (1.1%) | 218 | 976 | 1,128 | ||||||
Visa Inc. | 1,281 | 2.3% | 6.3% | 1,218 | 2.7% | 6.7% | 17,135 | 63 | (4.5%) | 0.0% | 233 | 976 | 1,128 | ||||||
Visa Debit Programs | |||||||||||||||||||
US | $624 | 8.5% | 8.5% | $493 | 10.7% | 10.7% | 12,220 | $132 | 0.7% | 0.7% | 925 | - | - | ||||||
International | 1,026 | (1.4%) | 4.6% | 519 | 5.1% | 11.8% | 16,838 | 507 | (7.2%) | (1.8%) | 4,207 | 2,053 | 2,252 | ||||||
Visa Inc. | 1,650 | 2.1% | 6.0% | 1,012 | 7.7% | 11.3% | 29,058 | 638 | (5.7%) | (1.3%) | 5,133 | 2,053 | 2,252 | ||||||
For the 3 Months Ended March 31, 2019 | |||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | Accounts | Cards | |||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions | |||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | |||||||
All Visa Credit & Debit | |||||||||||||||||||
Asia Pacific | $598 | (1.4%) | 3.6% | $477 | 0.7% | 6.3% | 6,942 | $121 | (9.1%) | (5.6%) | 1,002 | 933 | 1,028 | ||||||
Canada | 65 | (1.1%) | 3.4% | 59 | (0.7%) | 3.8% | 878 | 5 | (5.5%) | (1.2%) | 11 | 62 | 69 | ||||||
CEMEA | 272 | 1.0% | 9.4% | 111 | 11.5% | 22.1% | 4,474 | 161 | (5.1%) | 2.0% | 1,144 | 353 | 349 | ||||||
LAC | 230 | (9.5%) | 5.9% | 101 | (4.7%) | 14.1% | 3,439 | 129 | (12.9%) | 0.1% | 1,148 | 429 | 465 | ||||||
US | 1,071 | 6.9% | 6.9% | 930 | 7.9% | 7.9% | 16,970 | 141 | 0.9% | 0.9% | 888 | 758 | 917 | ||||||
Europe | 529 | (5.1%) | 4.4% | 406 | (2.6%) | 6.3% | 9,458 | 124 | (12.5%) | (1.2%) | 926 | 502 | 551 | ||||||
Visa Inc. | 2,765 | 0.4% | 5.8% | 2,085 | 3.3% | 8.0% | 42,160 | 680 | (7.7%) | (0.6%) | 5,120 | 3,037 | 3,378 | ||||||
Visa Credit Programs | |||||||||||||||||||
US | $488 | 6.1% | 6.1% | $473 | 6.3% | 6.3% | 5,705 | $15 | 0.6% | 0.6% | 14 | 271 | 336 | ||||||
International | 715 | (1.3%) | 6.5% | 668 | (0.8%) | 7.0% | 9,896 | 47 | (7.7%) | 0.0% | 203 | 704 | 788 | ||||||
Visa Inc. | 1,203 | 1.6% | 6.3% | 1,141 | 2.0% | 6.7% | 15,601 | 62 | (5.9%) | 0.2% | 217 | 974 | 1,123 | ||||||
Visa Debit Programs | |||||||||||||||||||
US | $583 | 7.7% | 7.7% | $457 | 9.7% | 9.7% | 11,265 | $126 | 1.0% | 1.0% | 874 | 487 | 581 | ||||||
International | 979 | (4.8%) | 4.0% | 487 | 0.9% | 9.8% | 15,294 | 492 | (9.9%) | (1.1%) | 4,028 | 1,576 | 1,674 | ||||||
Visa Inc. | 1,562 | (0.5%) | 5.4% | 944 | 5.0% | 9.7% | 26,559 | 618 | (7.8%) | (0.7%) | 4,903 | 2,063 | 2,255 |
12
For the 3 Months Ended December 31, 2018 | ||||||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | Accounts | Cards | ||||||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions | ||||||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | ||||||||||
All Visa Credit & Debit | ||||||||||||||||||||||
Asia Pacific | $616 | 2.7% | 6.6% | $493 | 5.1% | 9.1% | 7,387 | $123 | (5.8%) | (2.4%) | 1,058 | 921 | 1,020 | |||||||||
Canada | 76 | 5.1% | 9.0% | 70 | 5.2% | 9.1% | 995 | 6 | 3.9% | 7.8% | 11 | 63 | 69 | |||||||||
CEMEA | 287 | 1.9% | 8.6% | 114 | 14.2% | 22.3% | 4,504 | 173 | (4.8%) | 1.1% | 1,267 | 348 | 343 | |||||||||
LAC | 252 | (7.4%) | 8.8% | 108 | (3.4%) | 16.7% | 3,545 | 144 | (10.1%) | 3.5% | 1,276 | 426 | 464 | |||||||||
US | 1,121 | 9.5% | 9.5% | 979 | 10.5% | 10.5% | 17,887 | 142 | 3.0% | 3.0% | 925 | 754 | 914 | |||||||||
Europe | 570 | 1.0% | 7.2% | 429 | 3.0% | 8.5% | 9,988 | 141 | (4.6%) | 3.6% | 1,061 | 502 | 549 | |||||||||
Visa Inc. | 2,922 | 3.8% | 8.3% | 2,194 | 7.0% | 10.6% | 44,306 | 729 | (4.6%) | 1.9% | 5,598 | 3,015 | 3,359 | |||||||||
Visa Credit Programs | ||||||||||||||||||||||
US | $533 | 8.4% | 8.4% | $519 | 8.5% | 8.5% | 6,329 | $14 | 4.7% | 4.7% | 15 | 273 | 337 | |||||||||
International | 752 | 2.3% | 8.7% | 701 | 2.9% | 9.4% | 10,414 | 51 | (5.1%) | 0.5% | 220 | 701 | 782 | |||||||||
Visa Inc. | 1,285 | 4.8% | 8.6% | 1,220 | 5.2% | 9.0% | 16,743 | 65 | (3.1%) | 1.4% | 236 | 974 | 1,119 | |||||||||
Visa Debit Programs | ||||||||||||||||||||||
US | $588 | 10.5% | 10.5% | $460 | 12.8% | 12.8% | 11,558 | $127 | 2.8% | 2.8% | 909 | 481 | 576 | |||||||||
International | 1,049 | (0.6%) | 6.7% | 513 | 6.3% | 12.4% | 16,005 | 536 | (6.4%) | 1.7% | 4,453 | 1,560 | 1,663 | |||||||||
Visa Inc. | 1,637 | 3.1% | 8.0% | 974 | 9.3% | 12.6% | 27,563 | 663 | (4.7%) | 1.9% | 5,362 | 2,041 | 2,240 | |||||||||
For the 3 Months Ended September 30, 2018 | ||||||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | Accounts | Cards | ||||||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions | ||||||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | ||||||||||
All Visa Credit & Debit | 920 | 1,018 | ||||||||||||||||||||
Asia Pacific | $599 | 5.1% | 8.0% | $476 | 7.5% | 10.2% | 7,062 | $123 | (3.3%) | 0.3% | 1,041 | |||||||||||
Canada | 71 | 3.4% | 8.5% | 66 | 3.5% | 8.6% | 939 | 6 | 1.7% | 6.7% | 11 | 60 | 66 | |||||||||
CEMEA | 277 | 1.8% | 7.9% | 106 | 13.3% | 20.8% | 4,211 | 171 | (4.3%) | 1.2% | 1,227 | 353 | 345 | |||||||||
LAC | 231 | (9.5%) | 7.8% | 97 | (5.3%) | 16.0% | 3,284 | 134 | (12.3%) | 2.6% | 1,198 | 436 | 472 | |||||||||
US | 1,090 | 11.0% | 11.0% | 945 | 12.5% | 12.5% | 17,508 | 145 | 2.1% | 2.1% | 956 | 739 | 898 | |||||||||
Europe | 568 | 2.3% | 7.6% | 422 | 4.8% | 9.1% | 9,478 | 145 | (4.5%) | 3.4% | 1,089 | 499 | 548 | |||||||||
Visa Inc. | 2,835 | 4.9% | 9.0% | 2,112 | 8.6% | 11.7% | 42,483 | 723 | (4.5%) | 1.9% | 5,522 | 3,007 | 3,347 | |||||||||
Visa Credit Programs | 269 | 336 | ||||||||||||||||||||
US | $513 | 10.9% | 10.9% | $499 | 11.2% | 11.2% | 6,152 | $14 | 0.7% | 0.7% | 16 | |||||||||||
International | 727 | 3.5% | 9.2% | 676 | 4.1% | 9.9% | 10,000 | 51 | (4.2%) | 0.4% | 220 | 692 | 771 | |||||||||
Visa Inc. | 1,241 | 6.4% | 9.9% | 1,175 | 7.0% | 10.5% | 16,152 | 66 | (3.2%) | 0.4% | 236 | 961 | 1,107 | |||||||||
Visa Debit Programs | 470 | 562 | ||||||||||||||||||||
US | $577 | 11.1% | 11.1% | $446 | 14.0% | 14.0% | 11,356 | $130 | 2.3% | 2.3% | 941 | |||||||||||
International | 1,018 | 0.0% | 6.9% | 491 | 7.8% | 12.6% | 14,976 | 527 | (6.2%) | 2.1% | 4,346 | 1,576 | 1,678 | |||||||||
Visa Inc. | 1,594 | 3.8% | 8.4% | 937 | 10.7% | 13.3% | 26,332 | 657 | (4.7%) | 2.1% | 5,286 | 2,046 | 2,239 | |||||||||
For the 3 Months Ended June 30, 2018 | ||||||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | Accounts | Cards | ||||||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions | ||||||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | ||||||||||
All Visa Credit & Debit | ||||||||||||||||||||||
Asia Pacific | $613 | 13.3% | 9.2% | $485 | 17.0% | 12.2% | 6,700 | $128 | 1.1% | (0.5%) | 1,006 | 902 | 1,002 | |||||||||
Canada | 73 | 13.6% | 9.2% | 67 | 13.8% | 9.4% | 922 | 6 | 11.2% | 6.9% | 11 | 59 | 65 | |||||||||
CEMEA | 282 | 4.4% | 8.0% | 105 | 18.3% | 22.6% | 4,054 | 176 | (2.4%) | 0.8% | 1,238 | 347 | 339 | |||||||||
LAC | 240 | (3.4%) | 6.8% | 101 | 1.6% | 13.8% | 3,199 | 138 | (6.7%) | 2.4% | 1,180 | 430 | 466 | |||||||||
US | 1,082 | 10.0% | 10.0% | 938 | 11.3% | 11.3% | 17,276 | 144 | 2.1% | 2.1% | 994 | 707 | 853 | |||||||||
Europe | 578 | 13.0% | 7.2% | 428 | 15.2% | 8.7% | 9,076 | 150 | 7.1% | 3.1% | 1,096 | 498 | 547 | |||||||||
Visa Inc. | 2,868 | 9.5% | 8.8% | 2,125 | 13.2% | 11.6% | 41,226 | 742 | 0.1% | 1.6% | 5,525 | 2,943 | 3,272 | |||||||||
Visa Credit Programs | ||||||||||||||||||||||
US | $507 | 10.0% | 10.0% | $493 | 10.5% | 10.5% | 5,990 | $14 | (4.5%) | (4.5%) | 15 | 265 | 333 | |||||||||
International | 745 | 12.7% | 10.1% | 693 | 13.6% | 11.0% | 9,709 | 52 | 2.3% | (0.1%) | 219 | 685 | 764 | |||||||||
Visa Inc. | 1,252 | 11.6% | 10.1% | 1,186 | 12.3% | 10.8% | 15,699 | 66 | 0.8% | (1.1%) | 234 | 950 | 1,097 | |||||||||
Visa Debit Programs | ||||||||||||||||||||||
US | $576 | 10.0% | 10.0% | $445 | 12.3% | 12.3% | 11,286 | $131 | 2.8% | 2.8% | 979 | 442 | 520 | |||||||||
International | 1,040 | 6.8% | 6.6% | 494 | 16.5% | 12.8% | 14,242 | 546 | (0.6%) | 1.6% | 4,312 | 1,551 | 1,655 | |||||||||
Visa Inc. | 1,616 | 7.9% | 7.9% | 939 | 14.5% | 12.6% | 25,528 | 677 | 0.0% | 1.9% | 5,291 | 1,993 | 2,175 |
13
For the 12 Months Ended June 30, 2019 | ||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | Accounts | Cards | ||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions | ||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | ||||||
All Visa Credit & Debit | ||||||||||||||||||
Asia Pacific | $2,414 | 1.0% | 5.3% | $1,929 | 3.1% | 7.7% | 28,887 | $485 | (6.5%) | (3.4%) | 4,088 | 3 | 5 | |||||
Canada | 286 | 2.3% | 6.7% | 264 | 2.6% | 6.9% | 3,827 | 22 | (0.8%) | 3.4% | 44 | 63 | 63 | |||||
CEMEA | 1,133 | 2.6% | 8.7% | 456 | 14.4% | 21.9% | 18,312 | 677 | (4.1%) | 1.3% | 4,882 | 3 | 3 | |||||
LAC | 946 | (7.3%) | 7.5% | 410 | (2.8%) | 15.7% | 13,880 | 536 | (10.5%) | 2.0% | 4,820 | 2 | 2 | |||||
US | 4,448 | 8.8% | 8.8% | 3,875 | 9.9% | 9.9% | 70,985 | 573 | 1.8% | 1.8% | 3,710 | 6 | 7 | |||||
Europe | 2,227 | (1.3%) | 6.0% | 1,686 | 1.3% | 7.9% | 39,253 | 541 | (8.7%) | 0.3% | 4,062 | 1,524 | 1,671 | |||||
Visa Inc. | 11,454 | 2.8% | 7.3% | 8,621 | 5.9% | 9.7% | 175,143 | 2,833 | (5.6%) | 0.5% | 21,606 | 1,601 | 1,750 | |||||
Visa Credit Programs | ||||||||||||||||||
US | $2,076 | 8.1% | 8.1% | $2,019 | 8.2% | 8.2% | 24,585 | $57 | 2.5% | 2.5% | 60 | - | - | |||||
International | 2,934 | 0.9% | 7.6% | 2,736 | 1.4% | 8.2% | 41,045 | 198 | (5.9%) | 0.0% | 862 | 976 | 1,128 | |||||
Visa Inc. | 5,010 | 3.7% | 7.8% | 4,755 | 4.2% | 8.2% | 65,631 | 255 | (4.2%) | 0.5% | 922 | 976 | 1,128 | |||||
Visa Debit Programs | ||||||||||||||||||
US | $2,371 | 9.4% | 9.4% | $1,856 | 11.7% | 11.7% | 46,399 | $515 | 1.7% | 1.7% | 3,650 | - | - | |||||
International | 4,072 | (1.7%) | 5.6% | 2,010 | 5.0% | 11.7% | 63,113 | 2,062 | (7.4%) | 0.2% | 17,034 | 2,053 | 2,252 | |||||
Visa Inc. | 6,443 | 2.1% | 6.9% | 3,866 | 8.1% | 11.7% | 109,512 | 2,578 | (5.7%) | 0.5% | 20,684 | 2,053 | 2,252 | |||||
For the 12 Months Ended June 30, 2018 | ||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | Accounts | Cards | ||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions | ||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | ||||||
All Visa Credit & Debit | ||||||||||||||||||
Asia Pacific | $2,389 | 10.9% | 7.3% | $1,871 | 13.6% | 10.0% | 25,418 | $519 | 2.2% | (1.2%) | 3,954 | 902 | 1,002 | |||||
Canada | 280 | 13.5% | 8.8% | 258 | 13.6% | 8.9% | 3,468 | 22 | 12.4% | 7.7% | 44 | 59 | 65 | |||||
CEMEA | 1,105 | 9.8% | 8.5% | 398 | 24.9% | 22.6% | 14,926 | 706 | 2.8% | 2.0% | 4,952 | 347 | 339 | |||||
LAC | 1,020 | 4.6% | 6.1% | 422 | 9.3% | 11.9% | 12,425 | 599 | 1.6% | 2.5% | 4,721 | 430 | 466 | |||||
US | 4,089 | 9.4% | 9.4% | 3,526 | 10.4% | 10.4% | 65,769 | 563 | 3.5% | 3.5% | 3,932 | 707 | 853 | |||||
Europe | 2,256 | 14.5% | 7.6% | 1,664 | 16.8% | 9.4% | 34,400 | 592 | 8.5% | 2.6% | 4,234 | 498 | 547 | |||||
Visa Inc. | 11,139 | 10.4% | 8.2% | 8,139 | 13.1% | 10.6% | 156,405 | 3,000 | 3.7% | 2.0% | 21,837 | 2,943 | 3,272 | |||||
Visa Credit Programs | ||||||||||||||||||
US | $1,921 | 9.9% | 9.9% | $1,865 | 10.4% | 10.4% | 22,981 | $56 | (4.1%) | (4.1%) | 63 | 265 | 333 | |||||
International | 2,909 | 11.9% | 8.6% | 2,698 | 12.6% | 9.4% | 37,157 | 211 | 3.9% | (0.5%) | 878 | 685 | 764 | |||||
Visa Inc. | 4,830 | 11.1% | 9.1% | 4,563 | 11.7% | 9.8% | 60,138 | 266 | 2.1% | (1.3%) | 941 | 950 | 1,097 | |||||
Visa Debit Programs | ||||||||||||||||||
US | $2,168 | 8.9% | 8.9% | $1,661 | 10.3% | 10.3% | 42,788 | $507 | 4.4% | 4.4% | 3,869 | 442 | 520 | |||||
International | 4,141 | 10.3% | 6.7% | 1,915 | 19.1% | 13.0% | 53,480 | 2,227 | 3.8% | 1.8% | 17,027 | 1,551 | 1,655 | |||||
Visa Inc. | 6,309 | 9.8% | 7.5% | 3,576 | 14.9% | 11.7% | 96,267 | 2,734 | 3.9% | 2.3% | 20,896 | 1,993 | 2,175 |
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2. Cross-Border Volume
The table below represents cross-border volume growth for cards and other form factors carrying the Visa, Visa Electron, V PAY, Interlink and PLUS brands. Cross-border volume refers to payments and cash volume where the issuing country is different from the merchant country.
Growth | Growth | |
(Nominal | (Constant | |
Period | USD) | USD) |
3 Months Ended | ||
Jun 30, 2019 | 2% | 7% |
Mar 31, 2019 | (2%) | 4% |
Dec 31, 2018 | 3% | 7% |
Sep 30, 2018 | 8% | 10% |
Jun 30, 2018 | 15% | 10% |
12 Months Ended | ||
Jun 30, 2019 | 3% | 7% |
3. Visa Processed Transactions
The table below represents transactions using cards and other form factors carrying the Visa, Visa Electron, V PAY, Interlink and PLUS brands processed on Visa's networks.
Processed | ||
Period | Transactions | Growth |
(millions) | ||
3 Months Ended | 35,428 | 12% |
Jun 30, 2019 | ||
Mar 31, 2019 | 32,544 | 11% |
Dec 31, 2018 | 33,931 | 11% |
Sep 30, 2018 | 32,763 | 12% |
Jun 30, 2018 | 31,728 | 12% |
12 Months Ended | 134,667 | 12% |
Jun 30, 2019 |
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Footnote
Payments volume, including Visa Direct volume, represents the aggregate dollar amount of purchases made with cards and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands and excludes Europe co-badged volume 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 and 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 transactions processed by Visa and reported 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. Prior period updates, if any, are not material.
Visa's CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. 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, Europe 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.
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Disclaimer
Visa Inc. published this content on 23 July 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 July 2019 20:09:02 UTC