Visa beats the street after strong increase in card payments

 
City A.M. Reporter
VISA reported a quarterly profit that beat Wall Street estimates last night as customers spent more using its cards and the world’s largest credit and debit card network raised its outlook for full-year revenue and earnings.

Visa also authorised a new $1.5bn (£979m) share buyback programme, sending its shares up two per cent in after-hours trading.

The company reported a net profit of $1.23bn, or $1.88 per Class A share, for the third quarter compared with a net loss of $1.84bn, or $2.74 per share, a year earlier.

The year-earlier quarter included a $4.1bn litigation provision to cover costs associated with a settlement with US retailers over the fixing of card fees.

Operating revenue rose 17 per cent to $3bn, while payment volume increased 13 per cent to $1.1 trillion. Visa shares, which closed at $186.75 yesterday rose to $191 in after-market trading.

Visa, based in California, said US credit card spending increased 10 per cent to $270bn.