Shares of Visa, which rose 4.7% since the beginning of the year and recovered almost all losses in February and March, which decreased after the publication of the financial report for the 3rd quarter, that ended on June 30.<\/p>\n
Income per share of Visa in the 3rd quarter decreased from 23% to $ 1.06, which, however, is higher than analysts’ estimates of $ 1.03. The amount of quarterly profit (net income) was $ 2.4 billion compared to $ 3.1 billion in the previous year.<\/p>\n
Total revenue became 23% to $ 4.84 billion, however, it also turned out to be higher than analysts’ average estimates of $ 4.82 billion.<\/p>\n
Alfred F. Kelly Jr. – Chairman and CEO of Visa Inc., commented on the results: \u201cWe continue to focus on running our business in the medium to long term, despite the challenges of the global pandemic. This quarter we enjoyed with significant growth in strategically important areas, including e-commerce, payment mechanisms, new flows and value-added services. We remain committed to our strategy and are carefully investing in the future of Visa.\u201d<\/p>\n
The bad news about Visa is that the company has lost significantly from the “freeze” of the tourism industry, also reduced consumer spending, including health care. In addition, the company noted that the rate of recovery slowed in July due to a new wave of incidence of COVID-19 and the approach of the deadline for additional unemployment benefits in the United States.<\/p>\n
The total amount of payments through the Visa system for the 3rd quarter decreased by 10%, although trends suggest a gradual recovery.<\/p>\n
The volume of cross-border payments or the value of transactions between buyers and sellers from different countries occurred till 37%.<\/p>\n
Despite on the losses of the last quarter and the negative impact of the pandemic, Visa executives have expressed confidence that current trends in the popularity of non-cash payments and the boom in demand for e-commerce purchases will benefit the company in the long run.<\/p>\n
In the US, the amount of Visa credentials, related to e-commerce purchases, increased by 12% in June compared to January. Moreover, countries such as Argentina and Romania have shown strong growth trends in online shopping.<\/p>\n
Visa also added more than 80 million new contactless cards in the United States in the first six months of 2020.<\/p>\n
Analyst Barclays Ramsey El-Assal asserted that Visa showed better than expected earnings due to large savings, as advertising and marketing spending fell till 39% from a year earlier, “probably due to the postponement of the Summer Olympics.”<\/p>\n
The company did not provide a forecast for the full financial year, given the uncertainty regarding COVID-19.<\/p>\n
After the Visa report, investors around the world are waiting for the quarterly reports of PayPal Holdings Inc. after the close of trading on Wednesday and Mastercard Inc. on Thursday.<\/p>\n","protected":false},"featured_media":122069,"menu_order":0,"template":"","newscat":[9],"newstag":[24349,25564,24678,24362],"issues":[],"class_list":["post-122068","news","type-news","status-publish","has-post-thumbnail","hentry","newscat-novosti","newstag-covid-19","newstag-mastercard","newstag-paypal","newstag-visa"],"_links":{"self":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news\/122068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media\/122069"}],"wp:attachment":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media?parent=122068"}],"wp:term":[{"taxonomy":"newscat","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newscat?post=122068"},{"taxonomy":"newstag","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newstag?post=122068"},{"taxonomy":"issues","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/issues?post=122068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}