Visa boosts revenue and profit by double digits: Quarterly figures

Strong consumer spending and cross-border travel drive growth

Visa Inc. reported double-digit growth in revenue and profit for its fiscal first quarter, driven by strong consumer spending and a recovery in cross-border travel.

The payment processing giant said its net revenue rose 19% to $7.9 billion in the three months ended Dec. 31, compared with $6.6 billion in the same period a year earlier.

Net income attributable to Visa jumped 22% to $4.1 billion, or $1.82 per share, from $3.4 billion, or $1.47 per share, a year ago.

Cross-border volume climbs

Cross-border volume, a key driver of Visa's revenue, surged 22% in the quarter, as international travel resumed following the lifting of pandemic-related restrictions.

The company said cross-border volume was particularly strong in Europe, where it grew by 48%.

Visa's chief financial officer, Vasant Prabhu, said the company expects cross-border volume to continue to grow in the coming quarters, as travel demand remains strong.

US consumer spending remains robust

In the United States, Visa's credit and debit card spending rose 11% in the quarter, driven by strong consumer spending.

Prabhu said Visa is benefiting from the shift towards digital payments, which has accelerated in recent years.

"We are seeing continued momentum in digital payments, with Visa's processed volume growing 12% year-over-year," he said.

Outlook

Visa said it expects revenue growth to moderate in the second half of its fiscal year, as the impact of the cross-border travel recovery fades.

However, the company said it remains optimistic about the long-term growth prospects for its business.

"We believe that the secular shift towards digital payments will continue to drive growth for Visa in the years to come," Prabhu said.