Visa reported a small fall in its quarterly profit as lockdown restrictions continue to have an impact on the world’s travel and retail industries.
The payments company reported net income slipped two per cent in the second quarter to $3bn, equivalent to $1.38 per Class A Share. Analysts had expected a profit of $1.27 per share, according to Refinitiv figures.
“The COVID-19 pandemic certainly has turned the world upside down in the last year, but we believe we are starting to see the beginning of the end and the recovery is well underway in a number of key markets around the world,” chief executive Alfred F. Kelly Jr. said.
However there are encouraging signs the payments industry is starting to rebound on the back of the vaccine rollout and stimulus measures. Visa’s total payment volumes rose 11 per cent on a constant dollar basis from a year earlier.
“Cross-border travel is the slowest sector to return, but there are some green shoots that offer real indication of people looking to see the world. As economies are recovering, Visa is very well-positioned and continues to invest and innovate to drive big gains in our three strategic growth areas: consumer payments, new flows and value added services,” Kelly Jr. added.
Investors will welcome Visa’s return to positive growth in its credit and card present transactions, while debit and ecommerce growth stayed at “very healthy levels”.