NEW YORK: Visa Inc beat Wall Street’s quarterly estimates on Thursday as more international travel and e-commerce increased spending volumes.
While travel expenses due to the Omicron version of the coronavirus have stalled since late December, Visa officials said they believe recovery will resume and net revenues rise in the second fiscal quarter this year.
“The continued recovery of travel and affluent customers are going to return to the mix of spending at 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 volumes between September and November, when the US border and most of the borders within Europe reopened.
Visa’s chief financial officer, Vasant Prabhu, said that even if countries restore border closures this year due to new COVID-19 variants, when consumers can travel, spending quickly reverses.
Prabhu said, “(Open borders) can make a big and immediate impact. Our belief is for continual improvement over the course of the year.”
Shares were up 2.5% in after-hours trading for the company’s results.
Net revenue rose to $7.1 billion in the three months ended December 31, up 24% from the previous 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 Co also reported that they outpaced quarterly profit estimates this week, driven by renewed consumer spending on international travel, dining and shopping.
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