By Maria Armental
Visa Inc.’s March quarter results beat Wall Street targets, reflecting growth in payment and transaction volume, including more lucrative cross-border transactions.
The San Francisco-based company, the largest card network in the United States, said second-quarter earnings rose to $3.65 billion, or $1.70 per Class A share, from 3, $03 billion or $1.38 per share a year earlier.
Net revenue rose to $7.19 billion from $5.73 billion a year earlier.
Analysts polled by FactSet had expected $1.66 per share on $6.83 billion in revenue.
Customer incentives rose 25% to $2.49 billion, above the $2.43 billion expected by analysts.
Services revenue, which is based on the previous quarter’s payment volume, rose 24% to $3.5 billion, the company said.
Revenue from international transactions, which is tied to cross-border spending, rose 48% to $2.2 billion.
Payment volume increased by 17% in constant dollars.
Visa recorded about $60 million in charges in the quarter related to Russia and Ukraine, including about $35 million from the deconsolidation of its Russian subsidiary.
Russia accounted for about 4% of Visa’s total net income in the most recent fiscal year, which ended in September, and Ukraine about 1%.
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