Visa beats expectations
VISA posted higher-than-expected quarterly earnings last night, as consumers used their debit cards more.
Net income was $514m (£314m), or 69 cents a share, for the fourth quarter ending 30 September, compared with a net loss of $356m last year.
The world’s largest payment network increased its quarterly dividend by 19 per cent and authorized a $1bn share repurchase plan. Visa is partly insulated from the credit crisis because it processes transactions instead of lending funds.
But the company has seen a slowdown in the growth of revenue and transaction volumes as consumers use their credit cards less.
“We are beginning to see some very early signs of stabilisation in our business,” said chief executive Joseph Saunders.
Visa forecast capital expenditures of up to $250m for 2010, one-third less than in 2009.