According to Visa, net profit for the fourth quarter shrank to £1.65 billion.
The financial services group reported 4% growth in payment volumes.
The turnover of the American multinational company fell to 3.93 billion pounds in the fourth quarter.
Visa Inc. (NYSE: V) said on Wednesday that there are signs of an improvement in overall payment volumes in the fourth quarter of the fiscal year. However, the company acknowledged the impact of the coronavirus pandemic, which continues to restrict international travel.
Visa Inc. reported on Wednesday an increase of approximately 1.5% in expanded trade. The company’s shares will now be exchanged at a price of £141 per share. The stock started the year at £147 per share, but had fallen to a year low of £104.54 per share in March due to COVID-19 restrictions. Confused about choosing a reliable stockbroker for online trading? To make your choice easier, here is a comparison of the few providers.
Visa reports a 4% growth in payment volume
On a constant dollar basis, Visa said that payment volume grew 4% in the 4th quarter. In contrast, the cross-border volume was 41% lower when excluding intra-European transactions. Visa said:
Many countries had stable to positive year-on-year growth in domestic spending in the fourth quarter. But overall, cross-border spending continues to decline, led by travel spending, as most borders remain closed”.
A report on Wednesday also said Visa Inc. was interested in acquiring YellowPepper USA.
At £3.93 billion, the financial services company’s fourth quarter revenue was significantly lower than the £4.73 billion in the same quarter last year. The FactSet Consensus for Visa’s fourth quarter revenues was lower at £3.85 billion.
The U.S. multinational reported that its net profit for the final quarter was £1.65 billion, or 74.70 pence per share. This compares with higher net profits of £2.33 billion or £1.03 per share in the fourth quarter of last year.
Visa refrains from issuing its guidance for the 2021 financial year
On an adjusted basis, the San Francisco-based company earned 86 pence per share compared to £1.13 per share in the prior year. According to FactSet, experts had forecast slightly lower earnings of 84 pence per share for Visa in the last quarter.
Citing the uncertainty of COVID-19, Visa refrained from making a forecast for the 2021 financial year. In related news from the United States, Peer Mastercard also published its quarterly earnings report on Wednesday.
With an annual profit of about 45%, Visa has developed quite positively on the stock market in the past year. At the time of writing this report, the company is valued at £296.50 billion and has a price-earnings ratio of 34.39.