10-QPeriod: Q3 FY2019

VISA INC. Quarterly Report for Q3 Ended Jun 30, 2019

Filed July 26, 2019For Securities:V

Summary

Visa Inc. reported strong financial performance for the nine months ended June 30, 2019, with net revenues increasing by 11% to $16.84 billion 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 billion and dividends of $1.7 billion during the period. Key financial strengths include a healthy operating income of $11.27 billion 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.

Financial Highlights

43 data points
Beta

Revenue

$5.84B

Net Income

$3.10B

53.1% Net Margin

Total Assets

$70.25B

Cash & Equivalents

$7.91B

Free Cash Flow

$3.38B

Financial Statements
Beta
Revenue$5.84B
Operating Expenses$1.93B
Operating Income$3.91B
Net Income$3.10B

Key Highlights

  • 1Net revenues grew 11% to $16.84 billion for the nine months ended June 30, 2019, compared to the prior year.
  • 2Net income increased 21% to $9.06 billion for the nine months ended June 30, 2019.
  • 3Operating income was strong at $11.27 billion for the nine months ended June 30, 2019.
  • 4Visa returned $6.5 billion to shareholders through share repurchases and $1.7 billion in dividends during the first nine months of fiscal 2019.
  • 5The company's credit ratings were upgraded by Standard & Poor's and Moody's during the period.
  • 6Total assets stood at $70.25 billion as of June 30, 2019.
  • 7The company successfully managed operating expenses, which decreased by 1% for the nine months ended June 30, 2019.

Frequently Asked Questions

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.

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.

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.

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.