Visa shares lift after it beat expectations in the second quarter thanks to its Visa Europe acquisition

 
Courtney Goldsmith
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The VISA logo hangs on the front of the
Visa's shares lifted after it revealed an upbeat forecast (Source: Getty)

Visa's shares lifted after it reported it beat estimates in its second quarter earnings.

The figures

The world's largest payments network operator said total payments volume jumped 37.2 per cent to $1.73 trillion (£1.35 trillion) in the quarter ended 31 March, on a constant dollar basis.

Net income fell to $430m from $1.71bn the previous year, reflecting the purchase of Visa Europe, while net operating revenue rose 23.5 per cent to $4.48bn.

Visa also announced a $5bn share buyback programme, and its shares lifted 2.79 per cent at $93.69 in after-hours trading.

Read more: Visa shares slump as it changes Visa Europe deal

Why it's interesting

The growth in payments was boosted by Visa Europe, a former subsidiary Visa bought in June in a deal worth as much as $23bn.

Visa Europe accounted for 19.4 per cent of total payments volume.

Visa updated its full-year forecast, saying it now expects adjusted profit at the high-end of its forecast for a mid-teens percentage point increase.

What Visa said

Chief executive Alfred Kelly, Jr, said:

“In the face of geopolitical uncertainty, Visa continues to execute well against our operating plan and strategic priorities, delivering sustained growth across nearly every part of our business. Robust growth in payments volume, cross-border volume and processed transactions drove better than expected results.

"Looking ahead, we are continuing our efforts across the globe to electronify commerce and digitise economies to the benefit of consumers and societies alike.”

Read more: Step inside: Visa opens doors to its biggest ever innovation centre in London