Visa raises its dividend 16 per cent as payment activity grows
Visa raised its quarterly dividend after reporting growth in payment volume and processed transactions. Revenue increased 13 per cent in its fiscal fourth quarter, with cross-border activity also expanding. The payments network returned 5.2 billion dollars through buybacks and dividends during the quarter, while litigation and other special items affected reported earnings.
Economics & Markets··Morning
Quarterly revenue rises 13 per cent
Visa, the global payments network, released its fiscal fourth-quarter results on 27 October. Earnings and revenue exceeded consensus estimates for the quarter ended in September.[1], [2]
Net revenue increased 13 per cent to 12.1 billion dollars, with the same growth rate at constant exchange rates. Reported net income rose 18 per cent to 6 billion dollars. Adjusted net income was 6.6 billion dollars. Diluted earnings were 3.19 dollars per share under generally accepted accounting principles, compared with adjusted earnings of 3.48 dollars per share.[1]
Cross-border volume and transaction counts increase
Payment volume expanded 9 per cent at constant exchange rates. Cross-border volume excluding transactions within Europe grew 14 per cent. The network processed 74.2 billion transactions, up 10 per cent. Client incentives increased 21 per cent to 5.1 billion dollars. Quarterly earnings included a 469 million dollar provision for the interchange multidistrict litigation and 282 million dollars related to an investment donation to the Visa Foundation.[1]
Board lifts the quarterly dividend to 0.78 dollars
Visa’s board raised the quarterly cash dividend 16 per cent to 0.78 dollars per share. The company scheduled payment for 1 December, with shareholder eligibility determined on 10 November. Repurchases and dividends totalled 5.2 billion dollars during the quarter and 25.6 billion dollars over the fiscal year. Annual net revenue reached 45.9 billion dollars, up 15 per cent, or 14 per cent at constant exchange rates.[1]
