Visa Q2 profits up 3.6%, helped by more spending on network

Visa said that its fiscal secondquarter profits increased 3.6% from a year earlier, helped by growth in payments being processed over the company’s namesake network.

The San Francisco-based company reported net income of $3.08 billion, or $1.38 per share, in the three months ended March 31. That compares with a profit of $2.98 billion, or $1.31 per share, in the same period last year.

Excluding one-time items, including acquisition costs and the impact of equity investments, Visa earned $1.39 a share, or 5 cents more than the consensus analyst forecast, according to FactSet.

Revenue increased 7% to $5.9 billion, topping analysts’ estimates for $5.7 billion.

Visa said its payments volume increased 5% during the quarter, while its cross-border bank transfers fell 2%. Processed

transactions climbed 7%. The company earns a small fee for every transaction on its network.

Beginning in February, the COVID-19 pandemic initially affected transactions over Visa’s network in Asia. By the latter part of March, however, as the outbreak spread globally and governments imposed social distancing and shutdowns of nonessential businesses, transaction and payments volumes sharply declined, the company said.

In a statement, CEO Alfred Kelly said the company’s business model is resilient, but warned “the road ahead will likely be challenging for a number of quarters.”

Like other companies, Visa declined to provide a full-year earnings outlook, citing the “significant uncertainty” in the global economy due to COVID-19. (AP)