NEW YORK: Visa Inc beat Wall Street’s quarterly estimates on Thursday as more international travel and e-commerce boosted spending volumes.
While travel spending has stalled since late December due to the Omicron version of the coronavirus, Visa officials said they believe recovery will resume and net revenues will rise in the second fiscal quarter this year.
“The continued recovery of travel and affluent customers is going to return the mix of spending to the levels they were pre-pandemic,” Visa president and chief executive Alfred Kelly said on a call with analysts.
The world’s largest payments processor reported that transactions rose 21% to $47.6 billion during the quarter compared to a year ago.
The massive increase in travel led to a 40% increase in cross-border volume between September and November, when the US border and most borders within Europe reopened.
Visa’s chief financial officer, Vasant Prabhu, said that even if countries this year restore border closures due to new COVID-19 variants when consumers can travel, spending quickly reverses.
Prabhu said, “(Open borders) can have a big and immediate impact. We believe in continuous improvement over the course of the year.”
Shares were up 2.5% in after-trading after the company’s results.
Net revenue rose to $7.1 billion for the three months ended December 31, up 24% from the prior year.
Visa reported a profit of $3.9 billion, or $1.81 per share.
According to IBES data from Refinitiv, analysts had forecast net income of $1.70 per share on average.
Rival card companies Mastercard Inc. And American Express also reported that they outpaced quarterly profit estimates this week, driven by new consumer spending on international travel, dining and shopping.
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