Visa posts double-digit revenue growth on resilient consumer spending

Investing.com -- Visa reported a 14% rise in fiscal third-quarter revenue on Tuesday, driven by resilient consumer and business spending, higher cross-border payments and increased transaction volumes.

The payments company posted net revenue of $11.6 billion for the quarter ended June 30, while GAAP net income rose 7% to $5.6 billion. GAAP earnings per share increased 10% to $2.97, while adjusted earnings per share climbed 11% to $3.32.

Earlier on Tuesday, Bloomberg News reported that Visa plans to cut about 7% of its workforce, or roughly 2,600 jobs, citing a staff memo. The report said the reductions will primarily affect the company's technology and product teams.

Payments volume rose 10%, cross-border volume excluding intra-Europe increased 12%, total cross-border volume climbed 13%, and processed transactions grew 10% to 71.7 billion during the quarter.

Data processing revenue increased 17% to $6.0 billion, service revenue rose 14% to $4.9 billion, international transaction revenue grew 6% to $3.9 billion and other revenue surged 45% to $1.5 billion.

Operating expenses rose 19%, primarily due to higher personnel costs. The quarter included severance costs of $563 million, a $237 million litigation provision related to the interchange multidistrict litigation case and a deferred tax benefit tied to changes in U.S. taxation of certain foreign earnings.

Visa returned $6.2 billion to shareholders through share repurchases and dividends during the quarter.

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