Visa Inc (NYSE:V) told investors that the continued recovery in cross-border travel, combined with stable payments value and processed transaction growth, contributed to growth in first-quarter revenues.
The global payments company reported net revenues of $7.9 billion for the three months to 31 December 2022, up 12% from the same quarter a year earlier, as payments volume rose 7%. It processed 10% more transactions, with cross-border volume excluding transactions within Europe jumping 31%.
Net income for the quarter improved by 17% to $4.6 billion on a non-GAAP basis, resulting in earnings per share of $2.18, an increase of 21% from 1Q 2022. That was higher than the $2.01 per share in adjusted earnings and $7.7 billion in revenue expected by analysts, according to Refinitiv.
Over the quarter, it returned $4 billion of capital to shareholders in the form of share repurchases and dividends.
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“I continue to see a bright future for Visa and believe that we have the right strategy to invest in and capitalize on the opportunities ahead across consumer payments, new flows and value-added services,” Visa chairman and CEO Alfred Kelly said in a statement. “
"On February 1, Ryan McInerney will become CEO of Visa and I will assume the role of executive chairman. I am confident Ryan will lead Visa to new heights and I am grateful to all of our 26,500 employees who continue to position Visa at the center of money movement in increasingly innovative ways,” he added.
Visa’s shares traded 2.5% higher at $230.26 by noon in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com