01—Abstract
Summary
Summary of the 10-Q filed July 26, 2019. Cited figures are marked; the original filing is the authoritative source.
Visa Inc. reported strong financial performance for the nine months ended June 30, 2019, with net revenues increasing by 11% to $16.84 billiona and net income growing by 21% to $9.06 billion compared to the prior year.
This growth was driven by solid increases in service, data processing, and international transaction revenues, supported by robust growth in payment volumes and processed transactions. Despite some foreign currency headwinds, the company demonstrated effective cost management, with operating expenses showing a slight decrease of 1% for the nine-month period. The company also returned significant capital to shareholders through share repurchases totaling $6.5 billionb and dividends of $1.7 billion during the period.
Key financial strengths include a healthy operating income of $11.27 billionc for the nine months ended June 30, 2019, and a strong balance sheet with total assets of $70.25 billion. Visa's liquidity remains robust, supported by substantial cash flow from operations and an extended credit facility.
The company also saw positive credit rating upgrades during the period. While legal matters persist, particularly related to interchange litigation, the company has made progress on its settlement discussions and continues to manage these risks.
02—Key points
Key Highlights
- Net revenues grew 11% to $16.84 billion for the nine months ended June 30, 2019, compared to the prior year.
- Net income increased 21% to $9.06 billion for the nine months ended June 30, 2019.
- Operating income was strong at $11.27 billion for the nine months ended June 30, 2019.
- Visa returned $6.5 billion to shareholders through share repurchases and $1.7 billion in dividends during the first nine months of fiscal 2019.
- The company's credit ratings were upgraded by Standard & Poor's and Moody's during the period.
- Total assets stood at $70.25 billion as of June 30, 2019.
- The company successfully managed operating expenses, which decreased by 1% for the nine months ended June 30, 2019.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2019filed July 26, 2019Financial Statements
Q3 FY2019 against Q3 FY2018
| Line item | Q3 FY2019Q3 FY2018 | Change |
|---|---|---|
| Revenue | $5.84B$5.24B | +11.5% |
| Operating Expenses | $1.93B$2.35B | −18.0% |
| Operating Income | $3.91B$2.88B | +35.5% |
| Net Income | $3.10B$2.33B | +33.1% |
05—Questions
Frequently Asked Questions
What was Visa's revenue growth in the reported period?
Visa reported an 11% increase in net revenues for the nine months ended June 30, 2019, reaching $16.84 billion, driven by growth in service, data processing, and international transaction revenues.
How did Visa manage its expenses?
Total operating expenses decreased by 1% to $5.57 billion for the nine months ended June 30, 2019, compared to the prior year. This was achieved despite investments in personnel and marketing, largely due to a significant reduction in the litigation provision compared to the prior year.
What is the status of Visa's legal matters, particularly the interchange litigation?
Visa is involved in ongoing legal proceedings, including the interchange multidistrict litigation. While settlement discussions are progressing, including preliminary approval for a damages class settlement, the final outcome remains subject to court approval and further negotiations for other classes.
How is Visa returning capital to shareholders?
Visa actively returns capital to shareholders through share repurchases and dividends. For the nine months ended June 30, 2019, the company repurchased $6.5 billion of its stock and paid $1.7 billion in dividends.
06—Continue