Exhibit 99.1
Visa Inc. Posts Solid Fiscal Third Quarter 2009 Earnings Results and Updates Longer-term Guidance
• | Adjusted quarterly net income of $744 million or $0.98 per diluted class A common share |
• | Excluding the impact from the sale of the Company’s equity interest in VisaNet do Brasil, adjusted quarterly net income of $507 million or $0.67 per diluted class A common share |
• | GAAP quarterly net income of $729 million or $0.97 per diluted class A common share |
SAN FRANCISCO, CA, July 29, 2009 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal third quarter 2009 ended June 30, 2009. On an adjusted basis (reflective of restructuring and purchase amortization), net income for the quarter was $744 million, or $0.98 per diluted class A common share. Excluding the impact from the sale of the Company’s equity interest in VisaNet do Brasil, adjusted quarterly net income was $507 million or $0.67 per diluted class A common share. GAAP net income for the quarter was $729 million, or $0.97 per diluted class A common share. The weighted average number of diluted class A common shares outstanding was 756 million. The Company’s adjusted net income and adjusted diluted net income per class A common share are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying financial tables.
Net operating revenue in the fiscal third quarter of 2009 was $1.6 billion, an increase of 2% over the prior year, driven by contributions across all revenue categories. Though slightly negative in the U.S., payments volume continued to grow on a constant dollar basis in all other regions globally. Processed transactions continued to post solid growth globally.
“With little real improvement in the economic backdrop, Visa still posted solid operational and financial performance results during the fiscal third quarter,” said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. “Throughout this challenging time, the resiliency of our debit products and our credit products overseas, continue to exemplify the resiliency and stability of our business model.”
“While we cannot predict the specific timing of a global economic turnaround, we remain committed to doing our part in delivering balanced growth to our shareholders over the long term,” added Saunders. “As we look forward to the remainder of our fiscal 2009 year and beyond, we will remain focused on leveraging our inherent operating scale, maintaining strong financial performance and expense control.”
Fiscal Third Quarter 2009 Financial Highlights:
Visa Inc.’s operational performance highlights for the fiscal third quarter, as measured by business activity through March 31, 2009, include:
• | Payments volume growth, on a nominal basis, was a negative 5% over the prior year at $617 billion; |
• | Total volume, on a nominal basis and inclusive of cash volume, was $969 billion, a 7% decline over the prior year; and |
• | Total cards carrying the Visa brands rose 6% worldwide over the prior year to over 1.7 billion. |
Total processed transactions, which represent transactions processed by VisaNet through June 30, 2009, totaled 10.3 billion, an 8% increase over the prior year.
For the fiscal third quarter 2009, service revenues were $769 million, an increase of 3% versus the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues rose 12% over the prior year to $605 million. International transaction revenues, which are driven by cross-border payments volume, grew 2% over the prior year to $458 million. Other revenues, which include the Visa Europe licensing fee, were $158 million, up 6% over the prior year. Volume and support incentives, which are a contra revenue item, were $344 million, an increase of 25% over the prior year.
Adjusted total operating expenses were $804 million for the fiscal third quarter, a 9% decrease from the prior year’s adjusted total operating expenses of $883 million. Total operating expenses on a GAAP basis were $824 million for the quarter, a 15% decrease from the prior year.
Cash, cash equivalents, restricted cash, and investment securities were $6.1 billion at June 30, 2009.
Notable Events:
On June 30, 2009, Visa Inc. entered into a strategic alliance with Monitise plc, a UK based firm, to facilitate the delivery of Visa mobile payments and related services to consumers around the world. Concurrent with the strategic alliance, Visa has agreed to make a minority equity investment in Monitise. Monitise is a recognized expert in mobile financial services that operates payments and mobile banking services for some of the world’s leading financial institutions.
On July 1, 2009, Visa Inc. announced that Visa International, its wholly-owned subsidiary, sold 136,478,372 shares of Companhia Brasileira de Meios de Pagamento (“VisaNet do Brasil”), in connection with VisaNet do Brasil’s June IPO. Visa’s proceeds from the sale, net of underwriter discounts and fees, are approximately US$1 billion based on the then current exchange rates. Visa recorded a GAAP gain from the sale in the quarter ended June 30, 2009, net of tax, of $237 million. The gain reflects net proceeds received in July 2009, in excess of Visa International’s recorded book value of $535 million.
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As previously announced, Visa has initiated a program to allow its class C stockholders to apply (prior to September 30, 2009) for an early termination of the transfer restrictions applicable to class C shares, for up to 30% of the class C shares held by each such stockholder as of July 1, 2009, subject to certain terms and conditions. The remaining class C shares will continue to be subject to the general transfer restrictions that expire on March 25, 2011 under Visa’s Certificate of Incorporation. Class C shares sold under this program will automatically convert to class A shares, tradable in the public market. The release of the class C shares does not increase the number of outstanding shares of the Company and there is no dilutive effect to the outstanding share count from these transactions.
On July 16, 2009, as planned, the Company deposited $700 million (“Loss Funds”) into the litigation escrow account previously established under the Company’s Retrospective Responsibility Plan. The deposit of the Loss Funds into the escrow account reduced the conversion rate applicable to the Company’s class B common stock outstanding from 0.6296 per class A share to 0.5824 per class A share. The deposit of Loss Funds has the effect of a repurchase of approximately 11.6 million class A common stock equivalents from the Company’s class B shareholders.
On July 22, 2009, the Board of Directors declared a quarterly divided in the aggregate amount of $0.105 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on September 1, 2009 to all holders of record of Visa’s class A, class B and class C common stock as of August 14, 2009.
Financial Outlook:
Visa Inc. updates its financial outlook for the following metrics through 2010:
• | Annual adjusted operating margin in the low 50% range. |
• | Capital expenditures around $300 million in 2009 while still representing 3 to 4% of gross revenues in 2010. |
Visa Inc. affirms its financial outlook for the following metrics through 2010:
• | Annual net revenue growth of high single digits in 2009 and at the lower end of the 11% to 15% range in 2010, given certain economic recovery assumptions; |
• | Annual adjusted diluted class A common stock earnings per share growth of greater than 20%; |
• | Annual free cash flow in excess of $1 billion. |
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This outlook reflects an assumed 41% GAAP tax rate for fiscal year 2009, which reflects the tax impact of the Company’s sale of its equity interest in VisaNet do Brasil. The Company’s intent is to reduce this rate to a level around 35-36% over the next four years.
Fiscal Third Quarter 2009 Earnings Results Conference Call Details:
Visa’s executive management team will host a live audio webcast beginning at 5:00 p.m. EDT (2:00 p.m. PDT) today to discuss the financial results and business highlights.
All interested parties are invited to listen to the live webcast athttp://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 30 days.
Investor information, including supplemental financial information, is available on Visa Inc.’s Investor Relations website athttp://investor.visa.com.
###
About Visa Inc.
Visa Inc. operates the world’s largest retail electronic payments network providing processing services and payment product platforms. This includes consumer credit, debit, prepaid and commercial payments, which are offered under the Visa, Visa Electron, Interlink and PLUS brands. Visa enjoys unsurpassed acceptance around the world, and Visa/PLUS is one of the world’s largest global ATM networks, offering cash access in local currency in more than 170 countries. For more information, visitwww.corporate.visa.com.
Forward Looking Statements
Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. These statements can be identified by the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will” and similar expressions which are intended to identify forward-looking statements. In addition, any underlying assumptions are forward-looking statements. Such forward-looking statements include but are not limited to statements regarding certain of Visa’s goals and expectations with respect to adjusted earnings per share, revenue, adjusted operating margin, and free cash flow, and the growth rate in those items, as well as other measures of economic performance.
By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are not guarantees of future performance or results and (iii) are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements as a result of a variety of factors, including all the risks discussed in Part 1, Item 1A – “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2008. You are cautioned not to place undue reliance on such statements, which speak only as of the date of this presentation. Unless required to do so under U.S. federal securities laws or other applicable laws, we do not intend to update or revise any forward-looking statements.
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Contacts:
Investor Relations: Jack Carsky or Victoria Hyde-Dunn, 415-932-2213,ir@visa.com
Media Relations: Paul Cohen, 415-932-2564,globalmedia@visa.com
5
Visa Inc.
Selected Consolidated Statements of Operations
(unaudited)
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(in millions except per share data) | ||||||||||||||||
Operating Revenues | ||||||||||||||||
Service revenues | $ | 769 | $ | 749 | $ | 2,366 | $ | 2,273 | ||||||||
Data processing revenues | 605 | 539 | 1,703 | 1,525 | ||||||||||||
International transaction revenues | 458 | 449 | 1,409 | 1,209 | ||||||||||||
Other revenues | 158 | 150 | 462 | 409 | ||||||||||||
Volume and support incentives | (344 | ) | (274 | ) | (908 | ) | (862 | ) | ||||||||
Total operating revenues | 1,646 | 1,613 | 5,032 | 4,554 | ||||||||||||
Operating Expenses | ||||||||||||||||
Personnel | 262 | 310 | 809 | 882 | ||||||||||||
Network, EDP and communications | 97 | 84 | 282 | 245 | ||||||||||||
Advertising, marketing and promotion | 229 | 271 | 635 | 696 | ||||||||||||
Professional and consulting fees | 82 | 108 | 246 | 302 | ||||||||||||
Depreciation and amortization | 57 | 57 | 165 | 178 | ||||||||||||
Administrative and other | 96 | 85 | 225 | 234 | ||||||||||||
Litigation provision | 1 | 50 | 1 | 342 | ||||||||||||
Total operating expenses | 824 | 965 | 2,363 | 2,879 | ||||||||||||
Operating income | 822 | 648 | 2,669 | 1,675 | ||||||||||||
Other Income (Expense) | ||||||||||||||||
Equity in earnings of unconsolidated affiliates | — | — | — | 1 | ||||||||||||
Interest expense | (30 | ) | (30 | ) | (90 | ) | (116 | ) | ||||||||
Investment income, net | 504 | 97 | 557 | 172 | ||||||||||||
Other | 1 | (1 | ) | 1 | 35 | |||||||||||
Total other income | 475 | 66 | 468 | 92 | ||||||||||||
Income before income taxes and minority interest | 1,297 | 714 | 3,137 | 1,767 | ||||||||||||
Income tax expense | 568 | 292 | 1,299 | 607 | ||||||||||||
Income before minority interest | 729 | 422 | 1,838 | 1,160 | ||||||||||||
Minority interest | — | — | 1 | — | ||||||||||||
Net income | $ | 729 | $ | 422 | $ | 1,839 | $ | 1,160 | ||||||||
Basic net income per share | ||||||||||||||||
Class A common stock | $ | 0.97 | $ | 0.51 | $ | 2.42 | $ | 1.44 | ||||||||
Class B common stock | $ | 0.61 | $ | 0.36 | $ | 1.58 | $ | 1.33 | ||||||||
Class C common stock | $ | 0.97 | $ | 2.42 | ||||||||||||
Class C (series I) common stock | $ | 0.51 | $ | 1.44 | ||||||||||||
Class C (series II) common stock | $ | 0.12 | $ | 0.75 | ||||||||||||
Class C (series III and IV) common stock | $ | 0.51 | $ | 1.44 | ||||||||||||
Basic weighted average shares outstanding | ||||||||||||||||
Class A common stock | 448 | 447 | 447 | 170 | ||||||||||||
Class B common stock | 246 | 246 | 246 | 363 | ||||||||||||
Class C common stock | 152 | 152 | ||||||||||||||
Class C (series I) common stock | 125 | 213 | ||||||||||||||
Class C (series II) common stock | 80 | 48 | ||||||||||||||
Class C (series III and IV) common stock | 27 | 49 | ||||||||||||||
Diluted net income per share | ||||||||||||||||
Class A common stock | $ | 0.97 | $ | 0.51 | $ | 2.41 | $ | 1.44 | ||||||||
Class B common stock | $ | 0.61 | $ | 0.36 | $ | 1.58 | $ | 1.33 | ||||||||
Class C common stock | $ | 0.97 | $ | 2.41 | ||||||||||||
Class C (series I) common stock | $ | 0.51 | $ | 1.44 | ||||||||||||
Class C (series II) common stock | $ | 0.12 | $ | 0.75 | ||||||||||||
Class C (series III and IV) common stock | $ | 0.51 | $ | 1.44 | ||||||||||||
Diluted weighted average shares outstanding | ||||||||||||||||
Class A common stock | 756 | 776 | 761 | 767 | ||||||||||||
Class B common stock | 246 | 246 | 246 | 363 | ||||||||||||
Class C common stock | 152 | 152 | ||||||||||||||
Class C (series I) common stock | 125 | 213 | ||||||||||||||
Class C (series II) common stock | 80 | 48 | ||||||||||||||
Class C (series III and IV) common stock | 27 | 49 | ||||||||||||||
6
Visa Inc.
Selected Consolidated Balance Sheets
(unaudited)
June 30, 2009 | September 30, 2008 | |||||||
(in millions, except par value and share data) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 4,200 | $ | 4,979 | ||||
Restricted cash - litigation escrow | 1,141 | 1,298 | ||||||
Investment securities | ||||||||
Trading | 83 | — | ||||||
Available-for-sale | 47 | 355 | ||||||
Settlement receivable | 998 | 1,131 | ||||||
Accounts receivable | 419 | 342 | ||||||
Customer collateral | 739 | 679 | ||||||
Current portion of volume and support incentives | 217 | 256 | ||||||
Current portion of deferred tax assets | 484 | 944 | ||||||
Prepaid expenses and other current assets | 1,234 | 1,190 | ||||||
Total current assets | 9,562 | 11,174 | ||||||
Restricted cash - litigation escrow | 420 | 630 | ||||||
Investment securities, available-for-sale | 181 | 244 | ||||||
Volume and support incentives | 118 | 123 | ||||||
Property, equipment, and technology, net | 1,170 | 1,080 | ||||||
Other assets | 77 | 634 | ||||||
Intangible assets | 10,883 | 10,883 | ||||||
Goodwill | 10,213 | 10,213 | ||||||
Total assets | $ | 32,624 | $ | 34,981 | ||||
Liabilities | ||||||||
Accounts payable | $ | 106 | $ | 159 | ||||
Settlement payable | 979 | 1,095 | ||||||
Customer collateral | 739 | 679 | ||||||
Accrued compensation and benefits | 296 | 420 | ||||||
Volume and support incentives | 328 | 249 | ||||||
Accrued liabilities | 587 | 306 | ||||||
Current portion of long-term debt | 52 | 51 | ||||||
Current portion of accrued litigation | 1,348 | 2,698 | ||||||
Redeemable class C (series III) common stock, no shares and 35,263,585 shares issued and outstanding, respectively | — | 1,508 | ||||||
Total current liabilities | 4,435 | 7,165 | ||||||
Long-term debt | 46 | 55 | �� | |||||
Accrued litigation | 905 | 1,060 | ||||||
Deferred tax liabilities | 3,653 | 3,811 | ||||||
Other liabilities | 786 | 613 | ||||||
Total liabilities | 9,825 | 12,704 | ||||||
Temporary Equity and Minority Interest | ||||||||
Class C (series II) common stock, $0.0001 par value, no shares and 218,582,801 shares authorized, no shares and 79,748,857 shares issued and outstanding, net of subscription receivable, respectively | $ | — | $ | 1,136 | ||||
Minority interest | 5 | — | ||||||
Total temporary equity and minority interest | 5 | 1,136 | ||||||
Commitment and contingencies | ||||||||
Stockholders’ Equity | ||||||||
Preferred stock, $0.0001 par value, 25,000,000 shares authorized and none issued | $ | — | $ | — | ||||
Class A common stock, $0.0001 par value, 2,001,622,245,209 shares authorized, 449,407,746 and 447,746,261 issued and outstanding, respectively | — | — | ||||||
Class B common stock, $0.0001 par value, 622,245,209 shares authorized, 245,513,385 issued and outstanding, respectively | — | — | ||||||
Class C common stock, $0.0001 par value, 1,097,165,602 shares authorized, 151,605,798 issued and 151,581,349 outstanding at June 30, 2009 | — | — | ||||||
Class C (series I) common stock, $0.0001 par value, 813,582,801 shares authorized, 124,622,548 issued and 124,097,105 outstanding at September 30, 2008 | — | — | ||||||
Class C (series III) common stock, $0.0001 par value, 64,000,000 shares authorized, 26,949,616 issued and outstanding at September 30, 2008 | — | — | ||||||
Class C (series IV) common stock, $0.0001 par value, 1,000,000 shares authorized, 549,587 issued and outstanding at September 30, 2008 | — | — | ||||||
Additional paid-in capital | 21,115 | 21,060 | ||||||
Class C treasury stock, 24,449 shares and 525,443 shares, respectively | (2 | ) | (35 | ) | ||||
Accumulated income | 1,783 | 186 | ||||||
Accumulated other comprehensive loss, net | (102 | ) | (70 | ) | ||||
Total stockholders’ equity and accumulated income | 22,794 | 21,141 | ||||||
Total liabilities, temporary equity and minority interest, and stockholders’ equity | $ | 32,624 | $ | 34,981 | ||||
7
Visa Inc.
Selected Consolidated Statements of Cash Flows
(unaudited)
Nine Months Ended June 30, | ||||||||
2009 | 2008 | |||||||
(in millions) | ||||||||
Operating Activities | ||||||||
Net income | $ | 1,839 | $ | 1,160 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Gain on sale of other investments | (473 | ) | — | |||||
Depreciation and amortization of property, equipment and technology | 165 | 178 | ||||||
Share-based compensation | 84 | 47 | ||||||
Tax benefit for share based compensation | (6 | ) | — | |||||
Restricted stock instruments settled in cash for taxes | (22 | ) | — | |||||
Fair value adjustment for liability under the framework agreement | — | (35 | ) | |||||
Interest earned on litigation escrow, net of tax | (14 | ) | (6 | ) | ||||
Net recognized loss on investment securities, including other-than-temporary impairment | 8 | 12 | ||||||
Asset impairment on non-marketable equity investments | 7 | — | ||||||
Gain on disposal of property, equipment and technology | — | (1 | ) | |||||
Minority interest | (1 | ) | — | |||||
Amortization of volume and support incentives | 908 | 862 | ||||||
Accrued litigation and accretion | 72 | 447 | ||||||
Equity in earnings of unconsolidated affiliates | — | (1 | ) | |||||
Deferred income taxes | 316 | 136 | ||||||
Change in operating assets and liabilities: | ||||||||
Trading securities | 10 | — | ||||||
Accounts receivable | (77 | ) | (24 | ) | ||||
Settlement receivable | 133 | (642 | ) | |||||
Volume and support incentives | (785 | ) | (980 | ) | ||||
Other assets | 84 | (76 | ) | |||||
Accounts payable | (53 | ) | (60 | ) | ||||
Settlement payable | (116 | ) | 510 | |||||
Accrued compensation and benefits | (124 | ) | (99 | ) | ||||
Accrued and other liabilities | 438 | 52 | ||||||
Accrued litigation | (1,626 | ) | (1,220 | ) | ||||
Member deposits | — | (3 | ) | |||||
Net cash provided by operating activities | 767 | 257 | ||||||
Investing Activities | ||||||||
Investment securities, available-for-sale: | ||||||||
Purchases | — | (1,504 | ) | |||||
Proceeds from sales and maturities | 276 | 2,402 | ||||||
Distribution from money market investment | 884 | — | ||||||
Cash acquired through reorganization | — | 1,002 | ||||||
Purchases of/contributions to other investments | (1 | ) | (24 | ) | ||||
Dividends/distributions from other investments | 1 | 22 | ||||||
Purchases of property, equipment and technology | (205 | ) | (323 | ) | ||||
Proceeds from sale of property, equipment and technology | — | 4 | ||||||
Net cash provided by investing activities | 955 | 1,579 | ||||||
Financing Activities | ||||||||
Proceeds from short-term borrowing | — | 2 | ||||||
Payments on short-term borrowing | — | (2 | ) | |||||
Proceeds from sale of common stock, net of issuance costs $550 | — | 19,100 | ||||||
Tax benefit for share based compensation | 6 | — | ||||||
Cash proceeds from exercise of stock options | 20 | — | ||||||
Funding of litigation escrow account - Retrospective Responsibility Plan | (1,100 | ) | (3,000 | ) | ||||
Payments from litigation escrow account - Retrospective Responsibility Plan | 1,481 | 1,015 | ||||||
Funding of tax escrow account for income tax withheld on stock proceeds | — | (116 | ) | |||||
Payments from tax escrow account | — | 116 | ||||||
Payment for redemption of stock | (2,646 | ) | (13,446 | ) | ||||
Dividends paid | (240 | ) | — | |||||
Principal payments on debt | (8 | ) | (15 | ) | ||||
Principal payments on capital lease obligations | (4 | ) | (3 | ) | ||||
Net cash (used in) provided by financing activities | (2,491 | ) | 3,651 | |||||
Effect of exchange rate translation on cash and cash equivalents | (10 | ) | — | |||||
(Decrease) increase in cash and cash equivalents | (779 | ) | 5,487 | |||||
Cash and cash equivalents at beginning of year | 4,979 | 275 | ||||||
Cash and cash equivalents at end of period | $ | 4,200 | $ | 5,762 | ||||
Supplemental Disclosure of Cash Flow Information | ||||||||
Income taxes paid, net of refunds | $ | 528 | $ | 563 | ||||
Amounts included in accounts payable and accrued liabilities related to purchases of property, equipment, and technology | $ | 25 | $ | 27 | ||||
Interest payments on debt | $ | 3 | $ | 6 | ||||
Common stock issued in acquisition | $ | — | $ | 17,935 | ||||
Cash dividend declared but not paid | $ | — | $ | 93 | ||||
Assets acquired in joint venture with note payable and equity interest issued | $ | 22 | $ | — | ||||
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Selected Fiscal 2008 and 2009 Quarterly Results of Operations
US$ in millions
Fiscal 2008 Quarter Ended | Fiscal 2009 Quarter Ended | |||||||||||||||||||
June 30, 2008 | September 30, 2008 | December 31, 2008 | March 31, 2009 | June 30, 2009 | ||||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service revenues | $ | 749 | $ | 788 | $ | 793 | $ | 804 | $ | 769 | ||||||||||
Data processing revenues | 539 | 548 | 554 | 544 | 605 | |||||||||||||||
International transaction revenues | 449 | 512 | 505 | 446 | 458 | |||||||||||||||
Other revenues | 150 | 160 | 156 | 148 | 158 | |||||||||||||||
Volume and support incentives | (274 | ) | (299 | ) | (269 | ) | (295 | ) | (344 | ) | ||||||||||
Total operating revenues | 1,613 | 1,709 | 1,739 | 1,647 | 1,646 | |||||||||||||||
Operating Expenses | ||||||||||||||||||||
Personnel | 310 | 317 | 275 | 272 | 262 | |||||||||||||||
Network, EDP and communications | 84 | 94 | 93 | 92 | 97 | |||||||||||||||
Advertising, marketing and promotion | 271 | 320 | 210 | 196 | 229 | |||||||||||||||
Professional and consulting fees | 108 | 136 | 80 | 84 | 82 | |||||||||||||||
Depreciation and amortization | 57 | 59 | 52 | 56 | 57 | |||||||||||||||
Administrative and other | 85 | 98 | 63 | 66 | 96 | |||||||||||||||
Litigation provision | 50 | 1,128 | — | — | 1 | |||||||||||||||
Total operating expenses | 965 | 2,152 | 773 | 766 | 824 | |||||||||||||||
Operating income (loss) | 648 | (443 | ) | 966 | 881 | 822 | ||||||||||||||
Other Income (Expense) | ||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | — | — | (1 | ) | 1 | — | ||||||||||||||
Interest expense | (30 | ) | (27 | ) | (30 | ) | (30 | ) | (30 | ) | ||||||||||
Investment income, net | 97 | 39 | 19 | 34 | 504 | |||||||||||||||
Other | (1 | ) | — | (1 | ) | 1 | 1 | |||||||||||||
Total other income (expense) | 66 | 12 | (13 | ) | 6 | 475 | ||||||||||||||
Income (loss) before income taxes | 714 | (431 | ) | 953 | 887 | 1,297 | ||||||||||||||
Income tax expense (benefit) | 292 | (75 | ) | 379 | 352 | 568 | ||||||||||||||
Income (loss) before minority interest | 422 | (356 | ) | 574 | 535 | 729 | ||||||||||||||
Minority interest | — | — | — | 1 | — | |||||||||||||||
Net income (loss) | $ | 422 | $ | (356 | ) | $ | 574 | $ | 536 | $ | 729 | |||||||||
9
Adjusted Operating Income and Net Income
US$ in millions
Three Months Ended June 30, 2009 | Three Months Ended June 30, 2008 | |||||||
Net income (as reported) | $ | 729 | $ | 422 | ||||
Addback: Income tax expense (as reported) | 568 | 292 | ||||||
Net Income before taxes and minority interest (as reported) | $ | 1,297 | $ | 714 | ||||
Adjustments: | ||||||||
Litigation reserve(1) | — | 50 | ||||||
Restructuring(2) | 3 | 15 | ||||||
Asset step-up amortization(3) | 17 | 17 | ||||||
Adjustments to operating income | 20 | 82 | ||||||
Interest accretion on American Express settlement(4) | 8 | 11 | ||||||
Interest expense on Discover settlement(5) | 1 | — | ||||||
Investment income on Litigation Escrow and EU proceeds(6) | (3 | ) | (33 | ) | ||||
Underwater contract (LIBOR adjustment)(7) | — | 1 | ||||||
Adjustments to non-operating income | 6 | (21 | ) | |||||
Total adjustments | 26 | 61 | ||||||
Adjusted income before taxes and minority interest | 1,323 | 775 | ||||||
Adjusted income tax expense(8) | (579 | ) | (318 | ) | ||||
Adjusted net income | $ | 744 | $ | 457 | ||||
Operating income (as reported) | $ | 822 | $ | 648 | ||||
Addback: Adjustments to operating income | 20 | 82 | ||||||
Adjusted operating income | $ | 842 | $ | 730 | ||||
Operating revenues (as reported) | $ | 1,646 | $ | 1,613 | ||||
Adjusted operating margin | 51 | % | 45 | % | ||||
Total operating expenses (as reported) | $ | 824 | $ | 965 | ||||
Less: Adjustments to operating expenses | (20 | ) | (82 | ) | ||||
Adjusted operating expenses | $ | 804 | $ | 883 | ||||
(1) | Litigation reserve related to the covered litigation. Settlements of, or judgments in, covered litigation will be paid from the litigation escrow account. |
(2) | Restructuring costs associated with workforce consolidation and elimination of overlapping functions. |
(3) | Non-cash amortization and depreciation of the incremental basis in technology and building assets acquired in the reorganization. |
(4) | Non-cash interest expense recorded on future payments to be made under the settlement agreement with American Express. These payments will be paid from the litigation escrow account. |
(5) | Interest expense recorded on future payments to be made under the settlement agreement with Discover. These payments will be paid from the litigation escrow account. |
(6) | Investment income earned during the period on all IPO proceeds and amounts held in the litigation escrow, including amounts the Company used in October 2008 to redeem all class C (series II) common stock and a portion of the class C (series III) common stock held by Visa Europe. |
(7) | Other expense recorded in the periods presented as a result of changes in the Company’s estimated liability under the Framework Agreement, which governs its relationship with Visa Europe. The changes were primarily due to movement in the LIBOR rates in the periods presented. This liability was satisfied as part of the October 2008 redemptions described above. |
(8) | Adjusted income tax expense for the three months ended June 30, 2009 reflects the GAAP effective tax rate for the current quarter, which is impacted by the sale of the equity interest in VisaNet do Brasil. Adjusted income tax expense for the three months ended June 30, 2008 reflects the normalized tax rate for fiscal 2008. |
10
Reconciliation of Non-GAAP Adjusted Operating Expenses
US$ in millions
Three Months Ended June 30, 2009 | Three Months Ended June 30, 2008 | |||||||||||||||||||
Actual | Adjustments | As Adjusted | Actual | Adjustments | As Adjusted | |||||||||||||||
Personnel | $ | 262 | $ | (3 | ) (1) | $ | 259 | $ | 310 | $ | (15 | ) (1) | $ | 295 | ||||||
Network, EDP and communications | 97 | — | 97 | 84 | — | 84 | ||||||||||||||
Advertising, marketing and promotion | 229 | — | 229 | 271 | — | 271 | ||||||||||||||
Professional and consulting fees | 82 | — | 82 | 108 | — | 108 | ||||||||||||||
Depreciation and amortization | 57 | (17 | ) (2) | 40 | 57 | (17 | ) (2) | 40 | ||||||||||||
Administrative and other | 96 | — | 96 | 85 | — | 85 | ||||||||||||||
Litigation provision | 1 | — | 1 | 50 | (50 | ) (3) | — | |||||||||||||
Total operating expenses | $ | 824 | $ | (20 | ) | $ | 804 | $ | 965 | $ | (82 | ) | $ | 883 | ||||||
(1) | Restructuring |
(2) | Asset step-up amortization |
(3) | Litigation reserve |
11
Reconciliation of Non-GAAP Adjusted Non-operating Income
US$ in millions
Three Months Ended June 30, 2009 | Three Months Ended June 30, 2008 | |||||||||||||||||||||||
Actual | Adjustments | As Adjusted | Actual | Adjustments | As Adjusted | |||||||||||||||||||
Equity in earnings of unconsolidated affiliates | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Interest expense | (30 | ) | 9 | (1) | (21 | ) | (30 | ) | 11 | (1) | (19 | ) | ||||||||||||
Investment income, net | 504 | (3 | ) (2) | 501 | 97 | (33 | ) (2) | 64 | ||||||||||||||||
Other | 1 | — | 1 | (1 | ) | 1 | (3) | — | ||||||||||||||||
Total other income | $ | 475 | $ | 6 | $ | 481 | $ | 66 | $ | (21 | ) | $ | 45 | |||||||||||
(1) | Interest accretion on American Express Settlement and interest expense on Discover Settlement |
(2) | Investment income on Litigation Escrow funds and funds used in October 2008 for the repurchase of shares from Visa Europe |
(3) | Underwater contract (LIBOR adjustment) |
12
Class A Common Stock Adjusted Diluted Earnings Per Share
• | Management believes the presentation of adjusted operating income and adjusted net income provides a clearer understanding of the one-time items related to the Company’s reorganization, initial public offering and other non-recurring events. These measures also adjust for expenses related to covered litigation that will be funded by the litigation escrow account. These items have an impact on our financial results but are either non-recurring or have no operating cash impact. |
• | Recognizing that we have a very complex equity structure incorporating multiple classes and series of common stock, the Company has also presented adjusted diluted class A earnings per share calculated below based on adjusted net income and the weighted average number of diluted class A shares outstanding in the periods presented (adjusted in the prior period presented). This non-GAAP financial measure has been presented to illustrate our per share results reflecting our capital structure after the redemption of all class C (series II) common stock and a portion of class C (series III) common stock, which the Company redeemed in October 2008. Management believes this non-GAAP presentation provides the reader with a clearer understanding of our per share results by excluding these redeemed shares and allocating adjusted net income only to permanent equity. |
Three Months Ended June 30, 2009 | Three Months Ended June 30, 2008 | |||||
(in millions, except per share data) | ||||||
Adjusted net income | $ | 744 | $ | 457 | ||
Weighted average number of diluted shares outstanding | 756 | 779 | ||||
Adjusted diluted earnings per share | $ | 0.98 | $ | 0.59 | ||
13
Calculation of Free Cash Flow
US$ in millions
Additions (+) / Reductions (-) to Net income | For the Nine Months Ended June 30, 2009 | |||||||
Net income (as reported) | $ | 1,839 | ||||||
Recurring Items: | ||||||||
Capital Assets | + | Depreciation and amortization | 165 | |||||
- | Capital expenditures | (205 | ) | |||||
Share-based Compensation | + | Share-based compensation | 84 | |||||
Litigation | + | Litigation provision | 1 | |||||
+ | Accretion expense | 71 | ||||||
- | Settlement payments | (1,642 | ) | |||||
Pension | + | Pension expense | 43 | |||||
- | Pension contribution | (8 | ) | |||||
VisaNet do Brasil(1) | - | Gain on sale of investment, pre-tax | (473 | ) | ||||
Taxes | + | Income tax expense | 1,299 | |||||
- | Income taxes paid | (528 | ) | |||||
Non-recurring Items(2): | ||||||||
Covered Litigation | + | Settlement payments funded by litigation escrow | 1,481 | |||||
- | Tax benefit on settlement payments | (540 | ) | |||||
+ | Settlement payments funded by Morgan Stanley | 49 | ||||||
Total Free Cash Flow | $ | 1,636 | ||||||
(1) | In July 2009, Visa received total proceeds from the sale of its equity investment in VisaNet do Brasil of approximately $1 billion. Free cash flow for the quarter ended September 30, 2009 will reflect receipt of these proceeds, as well as the payment of associated taxes estimated to be approximately half this amount. |
(2) | Adjustments to eliminate the cash impact of non-recurring items. |
14
Operational Performance Data
The tables below provide information regarding the operational results for the 3 months ended March 31, 2009, as well as the prior seven quarterly reporting periods and the 12 months ended March 31, 2009 and 2008, for cards carrying the Visa, Visa Electron and Interlink brands.
1. Branded Volume and Transactions
The tables present Payments Volume, Cash Volume, Total Volume, the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior periods are provided for volume-based data.
For the 3 Months Ended March 31, 2009 | |||||||||||||||||||||||||||||||||||
Total Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Transactions (millions) | Cash Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Cash Transactions (millions) | Accounts (millions) | Cards (millions) | |||||||||||||||||||||||
All Visa Credit & Debit | |||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 229 | -6.5 | % | 11.3 | % | $ | 147 | -7.8 | % | 10.2 | % | 2,176 | $ | 82 | -4.2 | % | 13.3 | % | 545 | 420 | 506 | |||||||||||||
Canada | 36 | -23.3 | % | -0.8 | % | 32 | -22.2 | % | 0.5 | % | 347 | 4 | -30.6 | % | -10.3 | % | 9 | 23 | 31 | ||||||||||||||||
CEMEA | 108 | -4.8 | % | 19.7 | % | 17 | -0.4 | % | 19.5 | % | 294 | 91 | -5.6 | % | 19.7 | % | 666 | 178 | 182 | ||||||||||||||||
LAC | 128 | -10.3 | % | 16.1 | % | 42 | -9.3 | % | 15.2 | % | 1,283 | 86 | -10.7 | % | 16.6 | % | 775 | 313 | 341 | ||||||||||||||||
US | 468 | -4.3 | % | -4.3 | % | 379 | -2.5 | % | -2.5 | % | 7,502 | 89 | -10.9 | % | -10.9 | % | 708 | 480 | 664 | ||||||||||||||||
Visa Inc. | 969 | -6.5 | % | 4.0 | % | 617 | -5.5 | % | 2.0 | % | 11,602 | 352 | -8.3 | % | 7.8 | % | 2,703 | 1,415 | 1,723 | ||||||||||||||||
Visa Credit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 195 | -15.5 | % | -15.5 | % | $ | 176 | -9.7 | % | -9.7 | % | 2,083 | $ | 19 | -47.0 | % | -47.0 | % | 22 | 240 | 318 | |||||||||||||
Rest of World | 236 | -11.9 | % | 7.3 | % | 204 | -11.0 | % | 8.0 | % | 3,105 | 32 | -17.7 | % | 3.1 | % | 131 | 418 | 480 | ||||||||||||||||
Visa Inc. | 431 | -13.6 | % | -4.4 | % | 380 | -10.4 | % | -1.0 | % | 5,187 | 51 | -31.7 | % | -23.7 | % | 153 | 658 | 798 | ||||||||||||||||
Visa Debit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 272 | 5.8 | % | 5.8 | % | $ | 202 | 4.7 | % | 4.7 | % | 5,419 | $ | 70 | 9.4 | % | 9.4 | % | 686 | 241 | 346 | |||||||||||||
Rest of World | 265 | -5.4 | % | 19.0 | % | 34 | -2.5 | % | 25.3 | % | 996 | 231 | -5.8 | % | 18.1 | % | 1,864 | 517 | 579 | ||||||||||||||||
Visa Inc. | 537 | 0.0 | % | 12.0 | % | 236 | 3.6 | % | 7.2 | % | 6,415 | 301 | -2.7 | % | 16.0 | % | 2,550 | 757 | 925 | ||||||||||||||||
For the 3 Months Ended December 31, 2008 | |||||||||||||||||||||||||||||||||||
Total Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Transactions (millions) | Cash Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Cash Transactions (millions) | Accounts (millions) | Cards (millions) | |||||||||||||||||||||||
All Visa Credit & Debit | |||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 243 | 1.1 | % | 12.3 | % | $ | 161 | 2.1 | % | 13.2 | % | 2,227 | $ | 82 | -0.9 | % | 10.5 | % | 533 | 414 | 501 | |||||||||||||
Canada | 43 | -16.3 | % | 2.1 | % | 38 | -15.4 | % | 3.2 | % | 395 | 4 | -23.5 | % | -6.6 | % | 9 | 23 | 30 | ||||||||||||||||
CEMEA | 136 | 18.5 | % | 34.5 | % | 20 | 11.9 | % | 30.3 | % | 306 | 117 | 19.7 | % | 35.2 | % | 708 | 174 | 179 | ||||||||||||||||
LAC | 144 | -1.2 | % | 21.7 | % | 47 | -0.4 | % | 21.3 | % | 1,344 | 97 | -1.6 | % | 21.9 | % | 848 | 312 | 340 | ||||||||||||||||
US | 505 | -2.0 | % | -2.0 | % | 409 | -1.0 | % | -1.0 | % | 7,825 | 96 | -5.7 | % | -5.7 | % | 714 | 484 | 668 | ||||||||||||||||
Visa Inc. | 1,071 | 0.3 | % | 7.9 | % | 675 | -0.9 | % | 4.4 | % | 12,097 | 396 | 2.5 | % | 14.3 | % | 2,812 | 1,407 | 1,718 | ||||||||||||||||
Visa Credit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 230 | -9.2 | % | -9.2 | % | $ | 203 | -6.9 | % | -6.9 | % | 2,375 | $ | 27 | -23.2 | % | -23.2 | % | 28 | 258 | 334 | |||||||||||||
Rest of World | 266 | -2.3 | % | 11.7 | % | 228 | -1.6 | % | 12.0 | % | 3,228 | 37 | -5.9 | % | 10.2 | % | 148 | 415 | 478 | ||||||||||||||||
Visa Inc. | 496 | -5.6 | % | 0.9 | % | 431 | -4.2 | % | 2.2 | % | 5,603 | 65 | -14.1 | % | -6.9 | % | 176 | 673 | 813 | ||||||||||||||||
Visa Debit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 275 | 5.1 | % | 5.1 | % | $ | 206 | 5.6 | % | 5.6 | % | 5,450 | $ | 69 | 3.7 | % | 3.7 | % | 687 | 227 | 333 | |||||||||||||
Rest of World | 301 | 7.1 | % | 25.1 | % | 38 | 5.9 | % | 28.7 | % | 1,043 | 263 | 7.3 | % | 24.6 | % | 1,949 | 507 | 572 | ||||||||||||||||
Visa Inc. | 575 | 6.1 | % | 14.7 | % | 244 | 5.6 | % | 8.6 | % | 6,493 | 332 | 6.5 | % | 19.6 | % | 2,636 | 734 | 905 |
15
Operational Performance Data
| March 31, 2009
|
For the 3 Months Ended September 30, 2008 | |||||||||||||||||||||||||||||||||||
Total Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Transactions (millions) | Cash Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Cash Transactions (millions) | Accounts (millions) | Cards (millions) | |||||||||||||||||||||||
All Visa Credit & Debit | |||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 250 | 16.4 | % | 20.4 | % | $ | 163 | 16.3 | % | 20.5 | % | 2,144 | $ | 87 | 16.6 | % | 20.1 | % | 525 | 400 | 480 | |||||||||||||
Canada | 50 | 5.5 | % | 9.1 | % | 44 | 6.9 | % | 10.6 | % | 395 | 5 | -4.9 | % | -1.6 | % | 9 | 24 | 32 | ||||||||||||||||
CEMEA | 144 | 43.4 | % | 44.4 | % | 21 | 38.6 | % | 42.1 | % | 280 | 123 | 44.3 | % | 44.8 | % | 671 | 169 | 176 | ||||||||||||||||
LAC | 159 | 31.3 | % | 26.5 | % | 51 | 32.9 | % | 28.5 | % | 1,237 | 108 | 30.5 | % | 25.5 | % | 798 | 301 | 334 | ||||||||||||||||
US | 524 | 7.1 | % | 7.1 | % | 421 | 8.6 | % | 8.6 | % | 7,680 | 103 | 1.6 | % | 1.6 | % | 744 | 474 | 651 | ||||||||||||||||
Visa Inc. | 1,127 | 15.9 | % | 16.4 | % | 701 | 12.4 | % | 13.4 | % | 11,737 | 426 | 22.0 | % | 21.8 | % | 2,748 | 1,368 | 1,673 | ||||||||||||||||
Visa Credit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 244 | 1.7 | % | 1.7 | % | $ | 213 | 3.5 | % | 3.5 | % | 2,363 | $ | 31 | -9.2 | % | -9.2 | % | 30 | 263 | 336 | |||||||||||||
Rest of World | 280 | 15.6 | % | 18.9 | % | 239 | 16.1 | % | 19.2 | % | 3,115 | 41 | 12.9 | % | 17.4 | % | 153 | 410 | 473 | ||||||||||||||||
Visa Inc. | 525 | 8.7 | % | 10.2 | % | 452 | 9.8 | % | 11.2 | % | 5,478 | 73 | 2.2 | % | 4.2 | % | 183 | 672 | 809 | ||||||||||||||||
Visa Debit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 280 | 12.4 | % | 12.4 | % | $ | 208 | 14.3 | % | 14.3 | % | 5,318 | $ | 71 | 7.3 | % | 7.3 | % | 714 | 211 | 314 | |||||||||||||
Rest of World | 322 | 33.8 | % | 32.7 | % | 41 | 37.5 | % | 37.8 | % | 941 | 282 | 33.3 | % | 32.0 | % | 1,851 | 484 | 549 | ||||||||||||||||
Visa Inc. | 602 | 22.9 | % | 22.4 | % | 249 | 17.5 | % | 17.5 | % | 6,259 | 353 | 27.1 | % | 26.2 | % | 2,565 | 695 | 864 | ||||||||||||||||
For the 3 Months Ended June 30, 2008 | |||||||||||||||||||||||||||||||||||
Total Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Transactions (millions) | Cash Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Cash Transactions (millions) | Accounts (millions) | Cards (millions) | |||||||||||||||||||||||
All Visa Credit & Debit | |||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 250 | 24.3 | % | 21.1 | % | $ | 162 | 22.4 | % | 18.9 | % | 2,032 | $ | 88 | 28.0 | % | 25.5 | % | 498 | 387 | 472 | |||||||||||||
Canada | 51 | 14.3 | % | 10.3 | % | 45 | 14.5 | % | 10.4 | % | 383 | 6 | 13.0 | % | 9.0 | % | 9 | 24 | 31 | ||||||||||||||||
CEMEA | 131 | 45.8 | % | 40.7 | % | 19 | 37.8 | % | 38.1 | % | 255 | 112 | 47.2 | % | 41.2 | % | 640 | 159 | 168 | ||||||||||||||||
LAC | 155 | 35.4 | % | 22.9 | % | 50 | 40.3 | % | 27.5 | % | 1,160 | 105 | 33.2 | % | 20.8 | % | 754 | 303 | 328 | ||||||||||||||||
US | 526 | 8.8 | % | 8.8 | % | 423 | 9.7 | % | 9.7 | % | 7,661 | 103 | 4.9 | % | 4.9 | % | 738 | 465 | 642 | ||||||||||||||||
Visa Inc. | 1,113 | 19.2 | % | 16.5 | % | 699 | 15.2 | % | 13.6 | % | 11,490 | 414 | 26.6 | % | 21.8 | % | 2,639 | 1,338 | 1,642 | ||||||||||||||||
Visa Credit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 246 | 4.7 | % | 4.7 | % | $ | 213 | 5.0 | % | 5.0 | % | 2,333 | $ | 34 | 2.9 | % | 2.9 | % | 29 | 262 | 335 | |||||||||||||
Rest of World | 278 | 21.7 | % | 17.9 | % | 238 | 22.6 | % | 18.3 | % | 2,969 | 40 | 16.4 | % | 15.3 | % | 146 | 404 | 464 | ||||||||||||||||
Visa Inc. | 524 | 13.1 | % | 11.3 | % | 450 | 13.6 | % | 11.6 | % | 5,303 | 74 | 9.8 | % | 9.3 | % | 175 | 666 | 798 | ||||||||||||||||
Visa Debit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 280 | 12.6 | % | 12.6 | % | $ | 210 | 15.0 | % | 15.0 | % | 5,327 | $ | 69 | 5.9 | % | 5.9 | % | 708 | 203 | 308 | |||||||||||||
Rest of World | 309 | 39.4 | % | 31.0 | % | 38 | 40.3 | % | 31.9 | % | 860 | 271 | 39.3 | % | 30.8 | % | 1,756 | 470 | 536 | ||||||||||||||||
Visa Inc. | 589 | 25.2 | % | 21.5 | % | 248 | 18.2 | % | 17.3 | % | 6,187 | 340 | 30.9 | % | 24.9 | % | 2,464 | 673 | 844 | ||||||||||||||||
For the 3 Months Ended March 31, 2008 | |||||||||||||||||||||||||||||||||||
Total Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Transactions (millions) | Cash Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Cash Transactions (millions) | Accounts (millions) | Cards (millions) | |||||||||||||||||||||||
All Visa Credit & Debit | |||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 245 | 29.4 | % | 22.5 | % | $ | 159 | 26.5 | % | 19.4 | % | 1,913 | $ | 85 | 35.2 | % | 28.6 | % | 458 | 376 | 457 | |||||||||||||
Canada | 47 | 30.9 | % | 10.0 | % | 41 | 30.5 | % | 9.7 | % | 337 | 6 | 33.8 | % | 12.5 | % | 9 | 24 | 31 | ||||||||||||||||
CEMEA | 114 | 40.8 | % | 35.3 | % | 17 | 40.4 | % | 38.0 | % | 236 | 96 | 40.9 | % | 34.8 | % | 584 | 148 | 156 | ||||||||||||||||
LAC | 143 | 37.8 | % | 22.4 | % | 46 | 47.5 | % | 30.5 | % | 1,123 | 97 | 33.7 | % | 18.8 | % | 719 | 288 | 312 | ||||||||||||||||
US | 488 | 10.8 | % | 10.8 | % | 389 | 12.0 | % | 12.0 | % | 7,080 | 100 | 6.5 | % | 6.5 | % | 689 | 456 | 664 | ||||||||||||||||
Visa Inc. | 1,036 | 22.0 | % | 16.6 | % | 652 | 19.1 | % | 14.9 | % | 10,689 | 384 | 27.2 | % | 19.8 | % | 2,460 | 1,291 | 1,620 | ||||||||||||||||
Visa Credit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 231 | 8.0 | % | 8.0 | % | $ | 195 | 8.1 | % | 8.1 | % | 2,167 | $ | 36 | 7.5 | % | 7.5 | % | 30 | 260 | 368 | |||||||||||||
Rest of World | 268 | 28.5 | % | 18.5 | % | 229 | 29.5 | % | 19.1 | % | 2,798 | 39 | 23.0 | % | 15.0 | % | 134 | 387 | 446 | ||||||||||||||||
Visa Inc. | 499 | 18.1 | % | 12.9 | % | 424 | 18.7 | % | 13.2 | % | 4,965 | 75 | 15.0 | % | 10.8 | % | 164 | 647 | 814 | ||||||||||||||||
Visa Debit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 257 | 13.5 | % | 13.5 | % | $ | 193 | 16.2 | % | 16.2 | % | 4,913 | $ | 64 | 6.0 | % | 6.0 | % | 659 | 196 | 297 | |||||||||||||
Rest of World | 280 | 39.6 | % | 29.3 | % | 35 | 44.1 | % | 32.7 | % | 812 | 245 | 38.9 | % | 28.9 | % | 1,636 | 448 | 510 | ||||||||||||||||
Visa Inc. | 537 | 25.8 | % | 20.3 | % | 228 | 19.8 | % | 18.0 | % | 5,725 | 309 | 30.6 | % | 22.4 | % | 2,296 | 644 | 806 |
16
Operational Performance Data
| March 31, 2009
|
For the 3 Months Ended December 31, 2007 | |||||||||||||||||||||||||||||||||||
Total Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Transactions (millions) | Cash Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Cash Transactions (millions) | Accounts (millions) | Cards (millions) | |||||||||||||||||||||||
All Visa Credit & Debit | |||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 241 | 28.4 | % | 24.0 | % | $ | 158 | 24.3 | % | 20.3 | % | 1,931 | $ | 83 | 36.9 | % | 31.7 | % | 452 | 368 | 446 | |||||||||||||
Canada | 51 | 29.3 | % | 13.6 | % | 45 | 28.5 | % | 12.8 | % | 382 | 6 | 36.5 | % | 19.9 | % | 9 | 23 | 31 | ||||||||||||||||
CEMEA | 115 | 43.8 | % | 38.5 | % | 18 | 44.1 | % | 40.5 | % | 235 | 97 | 43.8 | % | 38.2 | % | 590 | 139 | 147 | ||||||||||||||||
LAC | 145 | 33.3 | % | 22.1 | % | 47 | 44.1 | % | 31.3 | % | 1,132 | 99 | 28.8 | % | 18.1 | % | 757 | 284 | 307 | ||||||||||||||||
US | 515 | 11.5 | % | 11.5 | % | 413 | 12.4 | % | 12.4 | % | 7,417 | 102 | 7.7 | % | 7.7 | % | 715 | 455 | 660 | ||||||||||||||||
Visa Inc. | 1,067 | 21.5 | % | 17.7 | % | 681 | 18.5 | % | 15.6 | % | 11,098 | 387 | 27.3 | % | 21.8 | % | 2,523 | 1,269 | 1,591 | ||||||||||||||||
Visa Credit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 253 | 9.2 | % | 9.2 | % | $ | 218 | 9.7 | % | 9.7 | % | 2,462 | $ | 36 | 5.9 | % | 5.9 | % | 33 | 259 | 365 | |||||||||||||
Rest of World | 272 | 26.7 | % | 19.8 | % | 232 | 27.3 | % | 20.3 | % | 2,863 | 40 | 23.2 | % | 17.2 | % | 136 | 372 | 431 | ||||||||||||||||
Visa Inc. | 525 | 17.6 | % | 14.1 | % | 450 | 18.1 | % | 14.6 | % | 5,326 | 75 | 14.4 | % | 11.2 | % | 169 | 630 | 796 | ||||||||||||||||
Visa Debit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 261 | 13.8 | % | 13.8 | % | $ | 195 | 15.6 | % | 15.6 | % | 4,955 | $ | 66 | 8.7 | % | 8.7 | % | 682 | 197 | 295 | |||||||||||||
Rest of World | 281 | 39.1 | % | 31.2 | % | 36 | 43.5 | % | 34.0 | % | 817 | 245 | 38.5 | % | 30.8 | % | 1,672 | 442 | 500 | ||||||||||||||||
Visa Inc. | 542 | 25.6 | % | 21.5 | % | 231 | 19.2 | % | 17.7 | % | 5,772 | 311 | 30.9 | % | 24.8 | % | 2,354 | 639 | 795 | ||||||||||||||||
For the 3 Months Ended September 30, 2007 | |||||||||||||||||||||||||||||||||||
Total Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Transactions (millions) | Cash Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Cash Transactions (millions) | Accounts (millions) | Cards (millions) | |||||||||||||||||||||||
All Visa Credit & Debit | |||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 215 | 25.6 | % | 20.6 | % | $ | 140 | 22.1 | % | 17.5 | % | 1,796 | $ | 74 | 32.8 | % | 26.8 | % | 417 | 348 | 427 | |||||||||||||
Canada | 47 | 22.7 | % | 12.9 | % | 42 | 21.4 | % | 11.8 | % | 362 | 6 | 33.0 | % | 22.5 | % | 9 | 23 | 31 | ||||||||||||||||
CEMEA | 101 | 43.0 | % | 38.8 | % | 15 | 39.0 | % | 35.6 | % | 211 | 85 | 43.8 | % | 39.4 | % | 545 | 125 | 136 | ||||||||||||||||
LAC | 121 | 26.7 | % | 18.9 | % | 38 | 38.5 | % | 29.5 | % | 1,004 | 83 | 21.9 | % | 14.6 | % | 691 | 267 | 289 | ||||||||||||||||
US | 489 | 9.7 | % | 9.7 | % | 388 | 10.8 | % | 10.8 | % | 7,039 | 101 | 5.7 | % | 5.7 | % | 730 | 440 | 642 | ||||||||||||||||
Visa Inc. | 973 | 18.4 | % | 15.8 | % | 623 | 15.9 | % | 13.8 | % | 10,411 | 349 | 23.3 | % | 19.3 | % | 2,392 | 1,203 | 1,526 | ||||||||||||||||
Visa Credit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 240 | 6.7 | % | 6.7 | % | $ | 206 | 8.5 | % | 8.5 | % | 2,314 | $ | 35 | -2.8 | % | -2.8 | % | 34 | 253 | 358 | |||||||||||||
Rest of World | 243 | 22.5 | % | 17.1 | % | 206 | 23.6 | % | 17.8 | % | 2,654 | 37 | 16.4 | % | 13.5 | % | 128 | 353 | 410 | ||||||||||||||||
Visa Inc. | 483 | 14.1 | % | 11.6 | % | 412 | 15.6 | % | 12.9 | % | 4,968 | 71 | 6.2 | % | 4.8 | % | 162 | 607 | 769 | ||||||||||||||||
Visa Debit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 249 | 12.7 | % | 12.7 | % | $ | 182 | 13.5 | % | 13.5 | % | 4,724 | $ | 67 | 10.7 | % | 10.7 | % | 696 | 187 | 284 | |||||||||||||
Rest of World | 241 | 36.0 | % | 28.6 | % | 29 | 39.6 | % | 31.3 | % | 718 | 211 | 35.5 | % | 28.3 | % | 1,534 | 409 | 473 | ||||||||||||||||
Visa Inc. | 490 | 23.1 | % | 20.0 | % | 212 | 16.5 | % | 15.6 | % | 5,442 | 278 | 28.6 | % | 23.6 | % | 2,230 | 596 | 757 | ||||||||||||||||
For the 3 Months Ended June 30, 2007 | |||||||||||||||||||||||||||||||||||
Total Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Transactions (millions) | Cash Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Cash Transactions (millions) | Accounts (millions) | Cards (millions) | |||||||||||||||||||||||
All Visa Credit & Debit | |||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 201 | 20.6 | % | 16.6 | % | $ | 132 | 19.9 | % | 16.8 | % | 1,708 | $ | 69 | 21.9 | % | 16.1 | % | 373 | 336 | 412 | |||||||||||||
Canada | 45 | 18.2 | % | 12.0 | % | 40 | 17.4 | % | 11.3 | % | 352 | 5 | 24.5 | % | 18.0 | % | 9 | 22 | 30 | ||||||||||||||||
CEMEA | 90 | 38.7 | % | 37.3 | % | 14 | 32.4 | % | 32.8 | % | 197 | 76 | 39.9 | % | 38.1 | % | 508 | 121 | 124 | ||||||||||||||||
LAC | 114 | 32.4 | % | 18.9 | % | 35 | 41.8 | % | 27.7 | % | 945 | 79 | 28.6 | % | 15.3 | % | 669 | 257 | 281 | ||||||||||||||||
US | 484 | 9.6 | % | 9.6 | % | 386 | 10.4 | % | 10.4 | % | 6,907 | 98 | 6.3 | % | 6.3 | % | 721 | 418 | 616 | ||||||||||||||||
Visa Inc. | 934 | 17.1 | % | 14.6 | % | 606 | 14.8 | % | 13.3 | % | 10,108 | 327 | 21.8 | % | 17.2 | % | 2,280 | 1,154 | 1,464 | ||||||||||||||||
Visa Credit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 235 | 6.4 | % | 6.4 | % | $ | 203 | 8.3 | % | 8.3 | % | 2,251 | $ | 33 | -4.3 | % | -4.3 | % | 32 | 245 | 345 | |||||||||||||
Rest of World | 228 | 19.8 | % | 16.1 | % | 194 | 21.2 | % | 17.0 | % | 2,519 | 35 | 12.6 | % | 11.1 | % | 120 | 339 | 394 | ||||||||||||||||
Visa Inc. | 464 | 12.6 | % | 11.0 | % | 396 | 14.3 | % | 12.5 | % | 4,770 | 67 | 3.7 | % | 3.1 | % | 152 | 584 | 739 | ||||||||||||||||
Visa Debit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 248 | 12.8 | % | 12.8 | % | $ | 183 | 12.9 | % | 12.9 | % | 4,656 | $ | 65 | 12.5 | % | 12.5 | % | 689 | 173 | 270 | |||||||||||||
Rest of World | 222 | 34.2 | % | 24.9 | % | 27 | 39.1 | % | 28.9 | % | 682 | 195 | 33.5 | % | 24.4 | % | 1,439 | 397 | 454 | ||||||||||||||||
Visa Inc. | 470 | 21.9 | % | 18.4 | % | 210 | 15.7 | % | 14.8 | % | 5,339 | 260 | 27.5 | % | 21.3 | % | 2,128 | 570 | 725 |
17
Operational Performance Data
| March 31, 2009
|
For the 12 Months Ended March 31, 2009 | |||||||||||||||||||||||||||||||||||
Total Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Transactions (millions) | Cash Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Cash Transactions (millions) | Accounts (millions) | Cards (millions) | |||||||||||||||||||||||
All Visa Credit & Debit | |||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 972 | 7.8 | % | 16.2 | % | $ | 633 | 7.4 | % | 15.7 | % | 8,580 | $ | 339 | 8.8 | % | 17.3 | % | 2,101 | 420 | 506 | |||||||||||||
Canada | 179 | -5.4 | % | 5.6 | % | 160 | -4.5 | % | 6.6 | % | 1,519 | 19 | -12.2 | % | -1.9 | % | 36 | 23 | 31 | ||||||||||||||||
CEMEA | 520 | 24.0 | % | 35.1 | % | 77 | 20.6 | % | 32.5 | % | 1,136 | 443 | 24.6 | % | 35.6 | % | 2,685 | 178 | 182 | ||||||||||||||||
LAC | 586 | 11.8 | % | 22.0 | % | 189 | 13.4 | % | 23.3 | % | 5,023 | 397 | 11.1 | % | 21.4 | % | 3,175 | 313 | 341 | ||||||||||||||||
US | 2,022 | 2.3 | % | 2.3 | % | 1,632 | 3.6 | % | 3.6 | % | 30,668 | 391 | -2.6 | % | -2.6 | % | 2,904 | 480 | 664 | ||||||||||||||||
Visa Inc. | 4,279 | 6.7 | % | 11.2 | % | 2,691 | 5.0 | % | 8.3 | % | 46,926 | 1,588 | 9.8 | % | 16.5 | % | 10,901 | 1,415 | 1,723 | ||||||||||||||||
Visa Credit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 916 | -4.6 | % | -4.6 | % | $ | 805 | -2.0 | % | -2.0 | % | 9,154 | $ | 111 | -19.8 | % | -19.8 | % | 109 | 240 | 318 | |||||||||||||
Rest of World | 1,060 | 4.9 | % | 14.1 | % | 909 | 5.6 | % | 14.5 | % | 12,417 | 151 | 0.8 | % | 11.8 | % | 578 | 418 | 480 | ||||||||||||||||
Visa Inc. | 1,976 | 0.3 | % | 4.6 | % | 1,713 | 1.9 | % | 6.1 | % | 21,571 | 263 | -9.1 | % | -4.2 | % | 687 | 658 | 798 | ||||||||||||||||
Visa Debit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 1,106 | 8.9 | % | 8.9 | % | $ | 827 | 9.7 | % | 9.7 | % | 21,514 | $ | 279 | 6.5 | % | 6.5 | % | 2,795 | 241 | 346 | |||||||||||||
Rest of World | 1,197 | 17.0 | % | 27.1 | % | 151 | 18.2 | % | 31.0 | % | 3,840 | 1,046 | 16.8 | % | 26.5 | % | 7,419 | 517 | 579 | ||||||||||||||||
Visa Inc. | 2,303 | 13.0 | % | 17.7 | % | 977 | 10.9 | % | 12.5 | % | 25,355 | 1,326 | 14.5 | % | 21.7 | % | 10,214 | 757 | 925 | ||||||||||||||||
For the 12 Months Ended March 31, 2008 | |||||||||||||||||||||||||||||||||||
Total Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Payments Transactions (millions) | Cash Volume ($ billions) | Growth (Nominal USD) | Growth (Constant USD) | Cash Transactions (millions) | Accounts (millions) | Cards (millions) | |||||||||||||||||||||||
All Visa Credit & Debit | |||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 901 | 26.2 | % | 20.9 | % | $ | 590 | 23.3 | % | 18.5 | % | 7,347 | $ | 312 | 31.9 | % | 25.6 | % | 1,701 | 376 | 457 | |||||||||||||
Canada | 190 | 25.2 | % | 12.2 | % | 167 | 24.4 | % | 11.5 | % | 1,433 | 22 | 32.0 | % | 18.3 | % | 37 | 24 | 31 | ||||||||||||||||
CEMEA | 419 | 41.7 | % | 37.5 | % | 64 | 39.2 | % | 36.7 | % | 879 | 355 | 42.1 | % | 37.7 | % | 2,227 | 148 | 156 | ||||||||||||||||
LAC | 524 | 32.7 | % | 20.5 | % | 167 | 43.2 | % | 29.7 | % | 4,204 | 357 | 28.3 | % | 16.6 | % | 2,836 | 288 | 312 | ||||||||||||||||
US | 1,976 | 10.4 | % | 10.4 | % | 1,575 | 11.4 | % | 11.4 | % | 28,443 | 401 | 6.6 | % | 6.6 | % | 2,855 | 456 | 664 | ||||||||||||||||
Visa Inc. | 4,010 | 19.8 | % | 16.2 | % | 2,563 | 17.1 | % | 14.4 | % | 42,306 | 1,447 | 25.0 | % | 19.5 | % | 9,655 | 1,291 | 1,620 | ||||||||||||||||
Visa Credit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 960 | 7.6 | % | 7.6 | % | $ | 821 | 8.7 | % | 8.7 | % | 9,195 | $ | 139 | 1.5 | % | 1.5 | % | 129 | 260 | 368 | |||||||||||||
Rest of World | 1,011 | 24.5 | % | 17.9 | % | 860 | 25.6 | % | 18.5 | % | 10,834 | 150 | 18.8 | % | 14.1 | % | 518 | 387 | 446 | ||||||||||||||||
Visa Inc. | 1,971 | 15.6 | % | 12.4 | % | 1,682 | 16.7 | % | 13.3 | % | 20,028 | 289 | 9.8 | % | 7.3 | % | 648 | 647 | 814 | ||||||||||||||||
Visa Debit Programs | |||||||||||||||||||||||||||||||||||
US | $ | 1,016 | 13.2 | % | 13.2 | % | $ | 754 | 14.6 | % | 14.6 | % | 19,248 | $ | 262 | 9.5 | % | 9.5 | % | 2,726 | 196 | 297 | |||||||||||||
Rest of World | 1,023 | 37.4 | % | 28.5 | % | 127 | 41.8 | % | 31.7 | % | 3,029 | 896 | 36.8 | % | 28.0 | % | 6,281 | 448 | 510 | ||||||||||||||||
Visa Inc. | 2,039 | 24.2 | % | 20.1 | % | 881 | 17.8 | % | 16.6 | % | 22,278 | 1,158 | 29.5 | % | 23.0 | % | 9,007 | 644 | 806 |
18
Operational Performance Data
| March 31, 2009
|
Footnote
The preceding tables present Payments Volume, Cash Volume, Total Volume, the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior periods are provided for volume-based data.
Payments Volume represents the aggregate dollar amount of purchases made with cards carrying the Visa, Visa Electron and Interlink brands for the relevant period; and Cash Volume represents the aggregate dollar amount of cash disbursements obtained with these cards for the relevant period and includes the impact of balance transfers and convenience checks; but excludes proprietary PLUS volume. Total Volume represents Payments Volume plus Cash Volume.
Visa payment products are comprised of credit and debit programs, and data relating to each program is included in the tables. Debit programs include Visa’s signature based and Interlink (PIN) debit programs.
The data presented is reported quarterly by Visa’s members on their operating certificates and is subject to verification by Visa. On occasion, members may update previously submitted information.
Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Several European Union countries in Central Europe, Israel and Turkey are not included in CEMEA. LAC is comprised of countries in Central and South America and the Caribbean. Rest of World includes Asia Pacific, Canada, CEMEA and LAC.
Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Visa Inc. volumes are reported (“Nominal USD”). These exchange rates are calculated on a quarterly basis using the established exchange rate for each quarter. To eliminate the impact of foreign currency fluctuations against the U.S. dollar in measuring performance, Visa Inc. also reports period-over-period growth in Total Volume, Payments Volume and Cash Volume on the basis of local currency information (“Constant USD”). This presentation represents Visa’s historical methodology which may be subject to review and refinement.
19
Operational Performance Data
| March 31, 2009
|
2. Processed Transactions
The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks.
Period | Processed Transactions (millions) | Year-over-Year Growth | |||
3 Months Ended | |||||
Jun 30, 2009 | 10,266 | 8 | % | ||
Mar 31, 2009 | 9,360 | 6 | % | ||
Dec 31, 2008 | 9,797 | 8 | % | ||
Sep 30, 2008 | 9,590 | 11 | % | ||
Jun 30, 2008 | 9,473 | 13 | % | ||
Mar 31, 2008 | 8,800 | 15 | % | ||
Dec 31, 2007 | 9,094 | 13 | % | ||
Sep 30, 2007 | 8,645 | 12 | % | ||
12 Months Ended | |||||
Jun 30, 2009 | 39,012 | 8 | % | ||
Jun 30, 2008 | 36,012 | 13 | % |
20