Visa Inc.’s Al Kelly warned the firm will be challenged “for a number of quarters” even as declines in spending on its network began to moderate in April.
- Cross-border spending — among the most lucrative transactions for Visa and its rival Mastercard Inc. — fell 2% in the first three months of the year. Still, Visa said in a presentation on its website that declines in such spending moderated and certain online transactions showed increases.
- Kelly, the chief executive officer, said “although the road ahead will likely be challenging for a number of quarters, our business model is resilient,” noting the firm renewed several partnerships in the period.
- Visa, which has vowed it won’t make any virus-related layoffs this year, said costs rose 4% to $1.93 billion, below the $2.02 billion average of analyst estimates compiled by Bloomberg.
- Overall spending on the firm’s cards rose 4.6% to $2.14 trillion, despite a drop in spending in the Asia-Pacific region, besting the $1.91 trillion average of analyst estimates compiled by Bloomberg. The firm warned in March of a sharp decline in spending on travel, entertainment, restaurants and fuel.
- The shares fell as much as 1.5% in extended trading after the
announcement. They ended regular New York trading at $178.72 on Thursday, for a decline this year of about 5%.
- Read the statement announcing Visa’s fiscal second-quarter resultshere.
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