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Visa Inc. Reports Fiscal Third Quarter 2015 Earnings Results
  • GAAP quarterly net income of $1.7 billion or $0.69 per share including a non-cash, non-operating expense related to the revaluation of the Visa Europe put option
  • Adjusted quarterly net income of $1.8 billion or $0.74 per share excluding the revaluation of the Visa Europe put option

FOSTER CITY, Calif.--(BUSINESS WIRE)--Jul. 23, 2015-- Visa Inc. (NYSE:V) today announced financial results for the Company’s fiscal third quarter 2015. GAAP net income for the quarter, inclusive of a non-cash, non-operating expense related to an adjustment in the Company’s fair value of its Visa Europe put option, was $1.7 billion or $0.69 per share. These results also include a tax benefit of $280 million resulting from the successful resolution of uncertain tax positions with taxing authorities. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

Excluding the $110 million non-cash, non-operating expense recorded upon remeasurement of the Visa Europe put option, adjusted net income for the quarter was $1.8 billion, an increase of 33% over the prior year, or $0.74 per share, an increase of 36% over the prior year. The change in the fair value of the Visa Europe put option was a result of our quarterly revaluation required by U.S. GAAP. The Company’s adjusted quarterly net income and earnings per share are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measure in the accompanying financial tables.

Net operating revenue in the fiscal third quarter of 2015 was $3.5 billion, an increase of 12% nominally or 14% on a constant dollar basis over the prior year, driven by solid growth in service, data processing and international transaction revenues.

“We continue to deliver solid financial results and operating metrics without the help of an improving economic environment. Strong underlying fundamentals continue to offset the drag from geopolitical tension and the strengthening dollar on our business,” said Charlie Scharf, Chief Executive Officer of Visa Inc.

Fiscal Third Quarter 2015 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2015, on which fiscal third quarter service revenue is recognized, was 11% over the prior year at $1.2 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2015, was 11% over the prior year at $1.3 trillion.

Cross-border volume growth, on a constant dollar basis, was 8% for the three months ended June 30, 2015.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2015, were 18.0 billion, an 8% increase over the prior year. As a result of recent changes in Russian National Payment System law, the Company has transitioned the processing of Russian domestic transactions to the Russian National Payment Card System during the fiscal third quarter. This impacted processed transactions growth negatively by approximately 2 percentage points during the quarter.

Fiscal third quarter 2015 service revenues were $1.6 billion, an increase of 9% over the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues rose 6% over the prior year to $1.4 billion. International transaction revenues grew 21% over the prior year to $1.0 billion. Other revenues were $199 million, an increase of 2% over the prior year. Client incentives, which are a contra revenue item, were $670 million and represent 16.0% of gross revenues.

Total operating expenses were $1.3 billion for the quarter, an 11% increase over the prior year, primarily related to an increase in personnel expenses, additional depreciation from our ongoing investments in technology assets, and general and administrative expenses.

GAAP effective tax rate was 21.7% for the quarter ended June 30, 2015. The rate included a benefit of $280 million resulting from the successful resolution of uncertain tax positions with taxing authorities in the third quarter.

Cash, cash equivalents, and available-for-sale investment securities were $8.0 billion at June 30, 2015.

The weighted-average number of diluted shares of class A common stock outstanding was 2.4 billion for the quarter ended June 30, 2015.

Notable Events:

During the three months ended June 30, 2015, the Company repurchased 15.5 million shares of class A common stock, at an average price of $68.05 per share, using $1.1 billion of cash on hand. Through the nine months ended June 30, 2015, the Company repurchased a total of 44.1 million shares of class A common stock, at an average price of $65.98 per share, using $2.9 billion of cash on hand. The Company has $2.8 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

On July 22, 2015, the board of directors declared a quarterly cash dividend of $0.12 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on September 1, 2015, to all holders of record of the Company’s class A, B and C common stock as of August 14, 2015.

Visa Europe Update:

Visa Inc. believes there is compelling logic for both Visa Inc. and Visa Europe to consummate a business combination and therefore regularly engages in such discussions and is currently in such discussions with Visa Europe. The Company is targeting to resolve these discussions by the end of October and will provide an update during the fourth quarter earnings call, if not sooner. There is no assurance, however, that any transaction will be ultimately agreed or implemented.

Financial Outlook:

Visa Inc. reaffirms its financial outlook for the following metrics for fiscal full-year 2015:

  • Annual operating margin: Mid 60s; and
  • Annual free cash flow greater than $6 billion.

Visa Inc. updates its financial outlook for the following metrics for fiscal full-year 2015:

  • Annual net revenue growth: Constant dollar revenue growth of low double digits, with an expectation of about 2.5 percentage points of negative foreign currency impact;
  • Client incentives as a percent of gross revenues: Low-end of the 17.5% to 18.5% range;
  • Tax rate: 29% to 30% range; and
  • Annual adjusted diluted class A common stock earnings per share growth: Mid-teens range.

Fiscal full-year 2015 annual adjusted diluted earnings per share growth assumes an adjusted basis for fiscal full-year 2014.

Fiscal Third Quarter 2015 Earnings Results Conference Call Details:

Visa’s executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at http://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 90 days. Investor information, including supplemental financial information, is available on Visa Inc.’s Investor Relations website at http://investor.visa.com.

About Visa:

Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world's most advanced processing networks — VisaNet — that is capable of handling more than 56,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.

Forward-Looking Statements:

This Press Release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as "estimates," "expectation," “outlook,” "will," “continued" and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make about our revenue, client incentives, operating margin, tax rate, earnings per share, free cash flow, and the growth of those items.

By their nature, forward-looking statements: (i) speak only as of the date they are made; (ii) are not statements of historical fact or guarantees of future performance; and (iii) are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from our forward-looking statements due to a variety of factors, including the following:

  • the impact of laws, regulations and marketplace barriers, including:
    • rules capping debit interchange reimbursement rates and expanding financial institutions' and merchants' choices among debit payments networks promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act;
    • increased regulation in jurisdictions outside of the United States and in other product categories;
    • increased government support of national payments networks outside the United States; and
    • increased regulation of consumer privacy, data use and security;
  • developments in litigation and government enforcement, including those affecting interchange reimbursement fees, antitrust and tax;
  • new lawsuits, investigations or proceedings, or changes to our potential exposure in connection with pending lawsuits, investigations or proceedings;
  • economic factors, such as:
    • economic fragility in the Eurozone and in the United States;
    • general economic, political and social conditions in mature and emerging markets globally;
    • general stock market fluctuations, which may impact consumer spending;
    • material changes in cross-border activity, foreign exchange controls and fluctuations in currency exchange rates;
    • volatility in market prices for oil and natural gas; and
    • material changes in our financial institution clients' performance compared to our estimates;
  • industry developments, such as competitive pressure, rapid technological developments and disintermediation from our payments network;
  • system developments, such as:
    • disruption of our transaction processing systems or the inability to process transactions efficiently;
    • account data breaches or increased fraudulent or other illegal activities involving Visa-branded cards or payment products; and
    • failure to maintain systems interoperability with Visa Europe;
  • any prospective transaction with Visa Europe may not be agreed to or implemented;
  • costs arising if we become obligated to purchase all of Visa Europe’s outstanding capital stock;
  • the loss of organizational effectiveness or key employees;
  • the failure to integrate acquisitions successfully or to effectively develop new products and businesses;
  • natural disasters, terrorist attacks, military or political conflicts, and public health emergencies; and

various other factors, including those contained in our Annual Report on Form 10-K for the year ended September 30, 2014, and our other filings with the U.S. Securities and Exchange Commission. You should not place undue reliance on such statements. Except as required by law, we do not intend to update or revise any forward–looking statements as a result of new information, future developments or otherwise.

   
 
VISA INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30,

2015

September 30,

2014

(in millions, except par value data)
Assets
Cash and cash equivalents $ 2,147 $ 1,971
Restricted cash—litigation escrow 1,143 1,498
Investment securities:
Trading 71 69
Available-for-sale 2,504 1,910
Settlement receivable 704 786
Accounts receivable 892 822
Customer collateral 1,068 961
Current portion of client incentives 248 210
Deferred tax assets 834 1,028
Prepaid expenses and other current assets   457     307  
Total current assets 10,068 9,562
 
Investment securities, available-for-sale 3,300 3,015
Client incentives 94 81
Property, equipment and technology, net 1,847 1,892
Other assets 920 855
Intangible assets, net 11,375 11,411
Goodwill   11,825     11,753  
Total assets $ 39,429   $ 38,569  
 
Liabilities
Accounts payable $ 89 $ 147
Settlement payable 1,237 1,332
Customer collateral 1,068 961
Accrued compensation and benefits 439 450
Client incentives 1,053 1,036
Accrued liabilities 806 624
Accrued litigation   1,097     1,456  
Total current liabilities 5,789 6,006
 
Deferred tax liabilities 4,134 4,145
Other liabilities   879     1,005  
Total liabilities   10,802     11,156  
 
Equity
Preferred stock, $0.0001 par value, 25 shares authorized and none issued
Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 1,951 and 1,978 shares issued and outstanding at June 30, 2015 and September 30, 2014, respectively
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at June 30, 2015 and September 30, 2014
Class C common stock, $0.0001 par value, 1,097 shares authorized, 19 and 22 shares issued and outstanding at June 30, 2015 and September 30, 2014, respectively
Additional paid-in capital 18,008 18,299
Accumulated income 10,623 9,131
Accumulated other comprehensive loss, net:
Investment securities, available-for-sale 5 31
Defined benefit pension and other postretirement plans (86 ) (84 )
Derivative instruments classified as cash flow hedges 78 38
Foreign currency translation adjustments   (1 )   (2 )
Total accumulated other comprehensive loss, net   (4 )   (17 )
Total equity   28,627     27,413  
Total liabilities and equity $ 39,429   $ 38,569  
 
VISA INC.        
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
Three Months Ended

June 30,

Nine Months Ended

June 30,

2015 2014 2015 2014
(in millions, except per share data)
Operating Revenues
Service revenues $ 1,550 $ 1,417 $ 4,665 $ 4,298
Data processing revenues 1,400 1,321 4,123 3,819
International transaction revenues 1,039 860 2,973 2,622
Other revenues 199 195 607 558
Client incentives   (670 )   (638 )   (2,059 )   (1,824 )
Total operating revenues   3,518     3,155     10,309     9,473  
 
Operating Expenses
Personnel 566 463 1,558 1,379
Marketing 224 228 619 659
Network and processing 117 127 340 379
Professional fees 82 82 229 234
Depreciation and amortization 130 109 375 323
General and administrative 137 126 404 354
Litigation provision           3      
Total operating expenses   1,256     1,135     3,528     3,328  
Operating income 2,262 2,020 6,781 6,145
Non-operating (expense) income   (94 )   10     (69 )   29  
Income before income taxes 2,168 2,030 6,712 6,174
Income tax provision   471     670     1,896     1,809  
Net income $ 1,697   $ 1,360   $ 4,816   $ 4,365  
 
Basic earnings per share
Class A common stock $ 0.69   $ 0.54   $ 1.96   $ 1.73  
Class B common stock $ 1.14   $ 0.91   $ 3.23   $ 2.91  
Class C common stock $ 2.78   $ 2.17   $ 7.84   $ 6.91  
 
Basic weighted-average shares outstanding
Class A common stock   1,955     1,982     1,964     2,001  
Class B common stock   245     245     245     245  
Class C common stock   20     26     21     26  
 
Diluted earnings per share
Class A common stock $ 0.69   $ 0.54   $ 1.96   $ 1.72  
Class B common stock $ 1.14   $ 0.91   $ 3.22   $ 2.90  
Class C common stock $ 2.77   $ 2.17   $ 7.82   $ 6.89  
 
Diluted weighted-average shares outstanding
Class A common stock   2,448     2,511     2,462     2,533  
Class B common stock   245     245     245     245  
Class C common stock   20     26     21     26  
 
VISA INC.    
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended

June 30,

2015 2014
(in millions)
Operating Activities
Net income $ 4,816 $ 4,365
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of client incentives 2,059 1,824
Fair value adjustment for the Visa Europe put option 110
Share-based compensation 139 130
Excess tax benefit for share-based compensation (78 ) (82 )
Depreciation and amortization of property, equipment, technology and intangible assets 375 323
Deferred income taxes 196 (358 )
Other 18 10
Change in operating assets and liabilities:
Settlement receivable 82 24
Accounts receivable (64 ) (55 )
Client incentives (2,093 ) (1,775 )
Other assets (342 ) (318 )
Accounts payable (52 ) (86 )
Settlement payable (95 ) 82
Accrued and other liabilities 141 273
Accrued litigation   (362 )   1,055  
Net cash provided by operating activities   4,850     5,412  
 
Investing Activities
Purchases of property, equipment, technology and intangible assets (276 ) (326 )
Proceeds from sales of property, equipment and technology 10
Investment securities, available-for-sale:
Purchases (2,315 ) (1,842 )
Proceeds from sales and maturities 1,410 1,863
Acquisition, net of cash received (93 ) (134 )
Purchases of / contributions to other investments (22 ) (3 )
Proceeds / distributions from other investments   10      
Net cash used in investing activities   (1,276 )   (442 )
 
Financing Activities
Repurchase of class A common stock (2,910 ) (3,362 )
Dividends paid (885 ) (758 )
Payments from (return to) litigation escrow account—retrospective responsibility plan 355 (1,056 )
Cash proceeds from issuance of common stock under employee equity plans 68 81
Restricted stock and performance-based shares settled in cash for taxes (105 ) (85 )
Excess tax benefit for share-based compensation   78     82  
Net cash used in financing activities   (3,399 )   (5,098 )
Effect of exchange rate changes on cash and cash equivalents   1      
Increase (decrease) in cash and cash equivalents 176 (128 )
Cash and cash equivalents at beginning of year   1,971     2,186  
Cash and cash equivalents at end of period $ 2,147   $ 2,058  
 
Supplemental Disclosure
Income taxes paid, net of refunds $ 1,892 $ 1,943
Accruals related to purchases of property, equipment, technology and intangible assets $ 67 $ 42
 
VISA INC.          
FISCAL 2015 AND 2014 QUARTERLY RESULTS OF OPERATIONS
(UNAUDITED)
 
Fiscal 2015 Quarter Ended Fiscal 2014 Quarter Ended
June 30,
2015
March 31,
2015

December 31,
2014

September 30,
2014
June 30,
2014
(in millions)
Operating Revenues
Service revenues $ 1,550 $ 1,577 $ 1,538 $ 1,499 $ 1,417
Data processing revenues 1,400 1,340 1,383 1,348 1,321
International transaction revenues 1,039 964 970 938 860
Other revenues 199 204 204 212 195
Client incentives   (670 )   (676 )   (713 )   (768 )   (638 )
 
Total operating revenues   3,518     3,409     3,382     3,229     3,155  
 
Operating Expenses
Personnel 566 483 509 496 463
Marketing 224 190 205 241 228
Network and processing 117 109 114 128 127
Professional fees 82 77 70 94 82
Depreciation and amortization 130 125 120 112 109
General and administrative 137 141 126 153 126
Litigation provision       3         453      
 
Total operating expenses   1,256     1,128     1,144     1,677     1,135  
 
Operating income 2,262 2,281 2,238 1,552 2,020
 
Non-operating (expense) income   (94 )   1     24     (2 )   10  
 
Income before income taxes 2,168 2,282 2,262 1,550 2,030
Income tax provision   471     732     693     477     670  
 
Net income $ 1,697   $ 1,550   $ 1,569   $ 1,073   $ 1,360  
 
VISA INC.
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(UNAUDITED)
               
During the third quarter of fiscal 2015, we recorded an increase of $110 million in the fair value of the Visa Europe put option, resulting in the recognition of non-cash, non-operating expense that we do not believe is indicative of our operating performance. As such, we believe the presentation of adjusted financial results provides a clearer understanding of our operating performance for the current periods presented. This amount is not subject to income tax and therefore has no impact on our reported income tax provision. There were no comparable adjustments recorded for the three and nine months ended June 30, 2014. Net income, as adjusted, and diluted earnings per share, as adjusted, are non-GAAP financial measures and should not be relied upon as substitutes for measures calculated in accordance with U.S. GAAP. The following table reconciles our as-reported net income and diluted earnings per share, which are calculated in accordance with U.S. GAAP, to our net income, as adjusted, and diluted earnings per share, as adjusted, for the periods presented:
Three Months Ended June 30, Nine Months Ended June 30,
Net Income

Diluted Earnings
per Share(1)

Net Income

Diluted Earnings
per Share(1)

2015 2014 2015 2014 2015 2014 2015 2014
(in millions, except per share data)
As reported $ 1,697 $ 1,360 $ 0.69 $ 0.54 $ 4,816 $ 4,365 $ 1.96 $ 1.72
Revaluation of Visa Europe put option   110     0.04     110     0.04  
As adjusted $ 1,807 $ 1,360 $ 0.74 $ 0.54 $ 4,926 $ 4,365 $ 2.00 $ 1.72
Diluted weighted-average shares outstanding 2,448 2,511

 

2,462 2,533

 

 
 
(1) Figures in the table may not recalculate exactly due to rounding. Diluted earnings per share figures are calculated based on unrounded numbers.

Prior period amounts have been retroactively adjusted for the four-for-one split of class A common stock that was effected in the second quarter of fiscal 2015.

 

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended June 30, 2015, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 2015 and 2014, for cards carrying the Visa, Visa Electron and Interlink brands.

1. Branded Volume and Transactions

The tables present regional total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.

  For the 3 Months Ended June 30, 2015

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

                   
All Visa Credit & Debit
Asia Pacific $ 509 4.2 % 10.8 % $ 364 7.8 % 15.2 % 4,362 $ 145 -3.8 % 1.1 % 1,002
Canada 61 -5.8 % 5.1 % 56 -6.0 % 4.9 % 675 5 -3.3 % 7.8 % 12
CEMEA 238 -14.0 % 7.1 % 61 -6.3 % 14.8 % 1,783 177 -16.4 % 4.7 % 1,199
LAC 237 -11.0 % 11.5 % 88 -12.5 % 12.3 % 2,591 148 -10.0 % 11.0 % 1,071

US

  809 7.9 % 7.9 %   683 8.7 % 8.7 % 13,314   127 4.0 % 4.0 % 952
Visa Inc. 1,854 0.5 % 8.9 % 1,252 5.1 % 10.9 % 22,725 602 -8.0 % 5.1 % 4,236
 
Visa Credit Programs
US $ 352 11.3 % 11.3 % $ 339 11.6 % 11.6 % 4,072 $ 13 3.6 % 3.6 % 16

International

  490 0.2 % 12.5 %   453 2.8 % 14.3 % 5,889   37 -23.6 % -6.3 % 160
Visa Inc. 842 4.5 % 12.0 % 791 6.4 % 13.2 % 9,960 50 -17.9 % -3.9 % 177
 
Visa Debit Programs
US $ 457 5.5 % 5.5 % $ 344 5.9 % 5.9 % 9,242 $ 113 4.1 % 4.1 % 936

International

  555 -8.5 % 7.4 %   117 -5.1 % 10.8 % 3,522   438 -9.4 % 6.6 % 3,124
Visa Inc. 1,012 -2.7 % 6.5 % 461 2.9 % 7.1 % 12,764 552 -6.9 % 6.1 % 4,060
 
  For the 3 Months Ended March 31, 2015

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                       
All Visa Credit & Debit
Asia Pacific $ 495 2.9 % 8.6 % $ 343 4.8 % 11.6 % 4,092 $ 152 -1.2 % 2.4 % 986 711 809
Canada 54 -5.0 % 7.1 % 49 -5.3 % 6.8 % 602 5 -1.7 % 10.9 % 12 42 49
CEMEA 213 -15.6 % 12.4 % 54 -7.8 % 20.4 % 1,619 159 -17.9 % 9.9 % 1,136 329 323
LAC 243 -2.9 % 13.4 % 93 -1.3 % 15.7 % 2,529 149 -3.8 % 12.0 % 1,042 417 450

US

  748 8.4 % 8.4 %   628 9.2 % 9.2 % 12,204   120 4.4 % 4.4 % 892 624 789
Visa Inc. 1,752 1.3 % 9.6 % 1,168 5.4 % 10.8 % 21,046 584 -6.0 % 7.2 % 4,067 2,123 2,420
 
Visa Credit Programs
US $ 316 12.3 % 12.3 % $ 303 12.3 % 12.3 % 3,623 $ 13 12.2 % 12.2 % 15 241 318

International

  464 0.3 % 11.7 %   428 2.7 % 12.8 % 5,533   36 -21.7 % 0.6 % 169 489 546
Visa Inc. 780 4.8 % 12.0 % 731 6.4 % 12.6 % 9,156 49 -14.8 % 3.5 % 184 730 864
 
Visa Debit Programs
US $ 432 5.8 % 5.8 % $ 325 6.5 % 6.5 % 8,581 $ 107 3.5 % 3.5 % 877 382 471

International

  540 -6.4 % 9.4 %   111 -3.5 % 12.2 % 3,310   428 -7.1 % 8.7 % 3,006 1,011 1,085
Visa Inc. 972 -1.3 % 7.7 % 437 3.8 % 7.9 % 11,891 535 -5.1 % 7.6 % 3,883 1,393 1,556
 
  For the 3 Months Ended December 31, 2014

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                       
All Visa Credit & Debit
Asia Pacific $ 511 3.6 % 8.0 % $ 359 5.8 % 10.7 % 4,186 $ 152 -1.4 % 1.9 % 974 698 797
Canada 66 -0.1 % 8.7 % 62 -0.1 % 8.7 % 671 5 0.2 % 9.0 % 11 42 49
CEMEA 265 -7.4 % 16.2 % 65 3.6 % 27.1 % 1,619 200 -10.4 % 13.1 % 1,225 325 321
LAC 286 -0.4 % 13.8 % 109 -0.6 % 15.3 % 2,697 177 -0.2 % 12.8 % 1,130 415 453

US

  772 9.4 % 9.4 %   651 10.2 % 10.2 % 12,594   121 5.2 % 5.2 % 914 614 782
Visa Inc. 1,900 3.4 % 10.5 % 1,246 7.0 % 11.5 % 21,767 654 -2.9 % 8.7 % 4,254 2,093 2,402
 
Visa Credit Programs
US $ 341 13.7 % 13.7 % $ 327 13.9 % 13.9 % 3,956 $ 13 9.2 % 9.2 % 16 236 313

International

  512 1.9 % 11.3 %   468 4.0 % 12.2 % 5,775   44 -15.9 % 2.4 % 188 485 544
Visa Inc. 853 6.3 % 12.2 % 795 7.8 % 12.9 % 9,731 58 -11.2 % 3.9 % 204 721 857
 
Visa Debit Programs
US $ 431 6.2 % 6.2 % $ 324 6.6 % 6.6 % 8,638 $ 108 4.7 % 4.7 % 898 377 469

International

  616 -2.2 % 11.3 %   127 2.7 % 15.6 % 3,398   489 -3.4 % 10.3 % 3,152 994 1,076
Visa Inc. 1,047 1.1 % 9.1 % 450 5.5 % 9.0 % 12,036 597 -2.0 % 9.2 % 4,050 1,372 1,545
 
  For the 3 Months Ended September 30, 2014

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                       
All Visa Credit & Debit
Asia Pacific $ 506 9.1 % 9.0 % $ 352 11.9 % 11.8 % 4,000 $ 154 3.2 % 3.2 % 960 677 774
Canada 66 2.0 % 7.4 % 61 1.7 % 7.0 % 651 5 5.5 % 11.0 % 12 40 47
CEMEA 280 5.9 % 15.0 % 68 18.0 % 26.5 % 1,489 213 2.5 % 11.7 % 1,173 321 318
LAC 276 6.6 % 12.1 % 105 7.4 % 14.4 % 2,496 171 6.1 % 10.8 % 1,056 417 448

US

  756 9.2 % 9.2 %   632 9.9 % 9.9 % 12,315   124 6.0 % 6.0 % 951 590 754
Visa Inc. 1,885 8.0 % 10.3 % 1,217 10.2 % 11.5 % 20,950 667 4.2 % 8.3 % 4,152 2,044 2,341
 
Visa Credit Programs
US $ 327 12.7 % 12.7 % $ 313 12.8 % 12.8 % 3,734 $ 14 11.8 % 11.8 % 17 230 304

International

  506 7.6 % 10.4 %   458 9.0 % 11.3 % 5,554   49 -3.7 % 2.8 % 192 484 545
Visa Inc. 833 9.6 % 11.3 % 770 10.5 % 11.9 % 9,289 62 -0.6 % 4.7 % 209 714 850
 
Visa Debit Programs
US $ 429 6.7 % 6.7 % $ 319 7.2 % 7.2 % 8,580 $ 110 5.4 % 5.4 % 934 360 450

International

  622 6.9 % 11.7 %   127 16.7 % 20.8 % 3,081   495 4.6 % 9.5 % 3,009 970 1,042
Visa Inc. 1,052 6.8 % 9.6 % 447 9.7 % 10.8 % 11,661 605 4.8 % 8.7 % 3,943 1,330 1,492
 
  For the 3 Months Ended June 30, 2014

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                       
All Visa Credit & Debit
Asia Pacific $ 488 7.1 % 9.6 % $ 338 11.1 % 12.6 % 3,821 $ 151 -1.0 % 3.5 % 910 658 754
Canada 65 0.6 % 7.6 % 60 1.1 % 8.2 % 627 5 -5.2 % 1.5 % 12 39 46
CEMEA 276 5.0 % 14.2 % 65 18.1 % 25.8 % 1,389 212 1.6 % 11.0 % 1,196 313 310
LAC 266 -1.3 % 10.0 % 101 0.3 % 12.1 % 2,408 165 -2.3 % 8.8 % 1,013 418 446

US

  750 9.4 % 9.4 %   628 10.1 % 10.1 % 12,224   122 5.9 % 5.9 % 943 580 743
Visa Inc. 1,845 6.1 % 10.1 % 1,191 9.4 % 11.5 % 20,469 654 0.7 % 7.4 % 4,073 2,008 2,299
 
Visa Credit Programs
US $ 316 12.1 % 12.1 % $ 303 12.3 % 12.3 % 3,574 $ 13 8.3 % 8.3 % 16 223 296

International

  489 5.7 % 10.1 %   440 7.0 % 11.0 % 5,366   49 -4.3 % 1.6 % 199 478 536
Visa Inc. 805 8.1 % 10.9 % 744 9.1 % 11.6 % 8,940 62 -1.9 % 3.2 % 215 701 832
 
Visa Debit Programs
US $ 433 7.4 % 7.4 % $ 325 8.1 % 8.1 % 8,650 $ 109 5.6 % 5.6 % 927 356 447

International

  607 2.7 % 11.1 %   123 15.0 % 22.9 % 2,879   484 0.0 % 8.4 % 2,932 950 1,020
Visa Inc. 1,040 4.6 % 9.4 % 448 9.9 % 11.3 % 11,529 593 1.0 % 7.8 % 3,859 1,307 1,467
 
  For the 12 Months Ended June 30, 2015

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

                   
All Visa Credit & Debit
Asia Pacific $ 2,021 4.9 % 9.1 % $ 1,418 7.5 % 12.3 % 16,641 $ 603 -0.8 % 2.2 % 3,922
Canada 248 -2.1 % 7.1 % 228 -2.3 % 6.9 % 2,598 20 0.2 % 9.7 % 47
CEMEA 996 -7.7 % 12.8 % 247 1.6 % 22.2 % 6,510 748 -10.5 % 10.0 % 4,733
LAC 1,041 -1.9 % 12.7 % 396 -1.9 % 14.5 % 10,312 646 -2.0 % 11.7 % 4,299

US

  3,085 8.7 % 8.7 %   2,594 9.5 % 9.5 % 50,427   492 4.9 % 4.9 % 3,709
Visa Inc. 7,390 3.3 % 9.8 % 4,882 6.9 % 11.1 % 86,488 2,508 -3.2 % 7.4 % 16,710
 
Visa Credit Programs
US $ 1,335 12.5 % 12.5 % $ 1,282 12.6 % 12.6 % 15,385 $ 54 9.1 % 9.1 % 65

International

  1,972 2.5 % 11.5 %   1,806 4.6 % 12.6 % 22,751   166 -16.0 % 0.0 % 709
Visa Inc. 3,307 6.3 % 11.9 % 3,088 7.8 % 12.6 % 38,136 219 -11.0 % 2.1 % 774
 
Visa Debit Programs
US $ 1,750 6.0 % 6.0 % $ 1,312 6.6 % 6.6 % 35,042 $ 438 4.4 % 4.4 % 3,645

International

  2,333 -2.6 % 10.0 %   482 2.4 % 14.9 % 13,310   1,851 -3.8 % 8.8 % 12,291
Visa Inc. 4,083 0.9 % 8.3 % 1,795 5.4 % 8.7 % 48,352 2,289 -2.3 % 7.9 % 15,936
 
  For the 12 Months Ended June 30, 2014

Total
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Payments
Transactions
(millions)

 

Cash
Volume
($ billions)

 

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

 

Cash
Transactions
(millions)

 

Accounts
(millions)

 

Cards
(millions)

                       
All Visa Credit & Debit
Asia Pacific $ 1,926 7.4 % 11.8 % $ 1,319 9.7 % 14.2 % 14,630 $ 608 2.8 % 7.2 % 3,532 658 754
Canada 253 1.4 % 8.1 % 233 1.6 % 8.2 % 2,390 20 -0.2 % 6.4 % 46 39 46
CEMEA 1,079 7.6 % 14.2 % 243 20.9 % 27.7 % 4,994 836 4.3 % 10.7 % 4,598 313 310
LAC 1,062 -0.6 % 10.6 % 403 1.5 % 13.8 % 9,629 659 -1.9 % 8.7 % 4,060 418 446

US

  2,838 8.6 % 8.6 %   2,369 9.3 % 9.3 % 46,360   469 5.0 % 5.0 % 3,641 580 743
Visa Inc. 7,158 6.4 % 10.4 % 4,568 8.8 % 11.7 % 78,003 2,590 2.4 % 8.1 % 15,878 2,008 2,299
 
Visa Credit Programs
US $ 1,187 10.6 % 10.6 % $ 1,138 10.9 % 10.9 % 13,492 $ 49 5.1 % 5.1 % 63 223 296

International

  1,925 5.5 % 11.4 %   1,727 6.4 % 12.4 % 20,866   197 -1.5 % 2.7 % 767 478 536
Visa Inc. 3,112 7.4 % 11.1 % 2,865 8.1 % 11.8 % 34,359 247 -0.2 % 3.2 % 830 701 832
 
Visa Debit Programs
US $ 1,651 7.2 % 7.2 % $ 1,231 8.0 % 8.0 % 32,868 $ 419 5.0 % 5.0 % 3,578 356 447

International

  2,395 4.6 % 12.2 %   471 15.9 % 24.0 % 10,776   1,924 2.2 % 9.6 % 11,469 950 1,020
Visa Inc. 4,046 5.7 % 9.9 % 1,702 10.0 % 11.6 % 43,644 2,344 2.7 % 8.6 % 15,047 1,307 1,467
 

2. Cross-Border Volume

The table below represents cross-border volume growth for cards carrying the Visa, Visa Electron, Interlink and PLUS brands. Cross-border volume refers to payments and cash volume where the issuing country is different from the merchant country.

Period  

Growth
(Nominal
USD)

 

Growth
(Constant
USD)

   

3 Months Ended

Jun 30, 2015 0% 8%
Mar 31, 2015 2% 8%
Dec 31, 2014 4% 8%
Sep 30, 2014 9% 10%
Jun 30, 2014 6% 7%
 

12 Months Ended

Jun 30, 2015 4% 9%
Jun 30, 2014 8% 9%
 

3. Visa Processed Transactions

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks.

Period  

Processed
Transactions
(millions)

  Growth
   

3 Months Ended

Jun 30, 2015 18,024 8%
Mar 31, 2015 16,980 11%
Dec 31, 2014 17,599 10%
Sep 30, 2014 16,991 10%
Jun 30, 2014 16,662 11%
 

12 Months Ended

Jun 30, 2015 69,595 10%
Jun 30, 2014 63,492 12%
 

Footnote

Payments volume represents the aggregate dollar amount of purchases made with cards carrying the Visa, Visa Electron and Interlink brands for the relevant period; and cash volume represents the aggregate dollar amount of cash disbursements obtained with these cards for the relevant period and includes the impact of balance transfers and convenience checks; but excludes proprietary PLUS volume. Total volume represents payments volume plus cash volume.

Visa payment products are comprised of credit and debit programs, and data relating to each program is included in the tables. Debit programs include Visa’s signature based and Interlink (PIN) debit programs.

The data presented is based on results reported quarterly by Visa’s financial institution clients on their operating certificates. Estimates may be utilized if data is unavailable.

On occasion, previously presented information may be updated. Prior period updates, if any, are not material.

Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Effective with the 3 months ended September 2013, Croatia moved from the CEMEA region to Visa Europe. Several European Union countries in Central Europe, Israel and Turkey are not included in CEMEA. LAC is comprised of countries in Central and South America and the Caribbean. International includes Asia Pacific, Canada, CEMEA and LAC.

Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Visa Inc. volumes are reported (“Nominal USD”). These exchange rates are calculated on a quarterly basis using the established exchange rate for each quarter. To eliminate the impact of foreign currency fluctuations against the U.S. dollar in measuring performance, Visa Inc. also reports year-over-year growth in total volume, payments volume and cash volume on the basis of local currency information (“Constant USD”). This presentation represents Visa’s historical methodology which may be subject to review and refinement.

Source: Visa Inc.

Visa Inc.
Investor Relations:
Jack Carsky or Victoria Hyde-Dunn, 650-432-7644
ir@visa.com
or
Media Relations:
John Earnhardt, 415-805-4949
globalmedia@visa.com