News Details

Visa Inc. Posts Strong Fiscal Third Quarter 2011 Earnings Results and Authorizes New $1 Billion Share Repurchase Program

07/27/2011

SAN FRANCISCO, July 27, 2011 /PRNewswire via COMTEX/ --

  • GAAP quarterly net income of $1.0 billion including a non-operating gain related to the Visa Europe put option revaluation
  • Adjusted quarterly net income of $883 million or $1.26 per diluted class A common share excluding the revaluation of the Visa Europe put option
  • The Company authorized a new $1 billion share repurchase program

 

 

Visa Inc. (NYSE: V) today announced financial results for the Company's fiscal third quarter 2011 ended June 30, 2011. GAAP net income for the quarter, inclusive of a non-cash, non-operating gain related to the Company's revaluation of its Visa Europe put option, was $1.0 billion.

On an adjusted basis, which excludes the revaluation of the Company's Visa Europe put option, net income for the quarter was $883 million, an increase of 23% over the prior year, and diluted class A common stock earnings per share were $1.26, an increase of 29% over the prior year. The weighted-average number of diluted class A common shares outstanding was approximately 704 million. The Company's adjusted quarterly net income per class A common shares outstanding is a non-GAAP financial measure that is reconciled to its most directly comparable GAAP measure in the accompanying financial tables.

GAAP net operating revenue in the fiscal third quarter of 2011 was $2.3 billion, an increase of 14% over the prior year and driven by strong double-digit growth in service revenues, data processing revenues and international transaction revenues. Currency fluctuations contributed two percentage points of growth towards quarterly net operating revenues.

"Visa delivered another quarter of strong financial and operational performance as we benefitted from growth in global payments volume, and solid cross border and processed transaction growth," said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. "As we address the new regulatory landscape, we are prepared to deliver on our financial goals and remain an industry leading growth company in the global transactions space."

"Visa is a diverse global enterprise, with strong positions in both developed and emerging markets around the world, and we are committed to further diversifying our business and accelerating growth in key markets worldwide," said Saunders. "We are executing on our growth strategy, investing heavily in innovation and taking important steps to bring new products and solutions to our partners and consumers."

Fiscal Third Quarter 2011 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2011, on which fiscal third quarter service revenue is recognized, was a positive 13% over the prior year at $862 billion.

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2011, was a positive 13% over the prior year at $941 billion.

Cross border volume growth, on a constant dollar basis, was a positive 14% for the three months ended June 30, 2011.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2011, were 13 billion, a positive 11% increase over the prior year.

For the fiscal third quarter 2011, service revenues were $1.1 billion, an increase of 21% 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 $886 million. International transaction revenues, which are driven by cross border payments volume, grew 15% over the prior year to $662 million. Other revenues, which include the Visa Europe licensing fee, were $167 million, a 10% decrease over the prior year. Client incentives, which are a contra revenue item, were $448 million and represents 16% of gross revenues.

Total operating expenses on a GAAP basis were $977 million for the quarter, a 10% increase over the prior year.

Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $6.7 billion at June 30, 2011.

Visa's effective tax rate was 38% for the quarter ended June 30, 2011, excluding the revaluation of the Visa Europe put option.

Notable Events:

On June 6, 2011, the Company acquired Fundamo, a leading platform provider of mobile financial services for mobile network operators and financial institutions in developing economies, for total consideration of approximately $110 million paid with cash on hand. In addition, the Company announced a new, long-term commercial agreement with Monitise plc, a leading provider of mobile money solutions for financial institutions in more developed geographies. The combination of acquiring Fundamo and expanding the relationship with Monitise will enable Visa to deliver best-in-class mobile financial services and payments capabilities to consumers across the full spectrum of uses, geographies and mobile environments from basic services on simple handsets to more advanced services for smart phone owners.

During the quarter, the Company received regulatory approval for the sale of its 10 percent investment in Visa Vale issuer Companhia Brasileira de Solucoes e Servicos, or CBSS, to Banco do Brasil and Bradesco. This resulted in a pre-tax gain, net of transaction costs, of $85 million recognized in the investment income net line on the consolidated statements of operations. The amount of the gain net of tax was $44 million.

During the three months ended June 30, 2011, the Company repurchased approximately 13.7 million class A common shares, at an average price of $77.36 per share, for a total cost of $1.1 billion.

As announced on July 22, 2011, the Board of Directors declared a quarterly dividend in the aggregate amount of $0.15 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 7, 2011, to all holders of record of the Company's class A, class B and class C common stock as of August 19, 2011.

Today, the Company announces that its Board of Directors has authorized a new $1 billion class A share repurchase program. The authorization will be in place through July 20, 2012, and is subject to further change at the discretion of the Board.

Financial Outlook:

Visa Inc. updates its financial outlook for the following metric for 2011:

  • Capital expenditures: Moderately above $300 million.

 

Visa Inc. affirms its financial outlook for the following metrics through 2011:

  • Annual net revenue growth: 11% to 15% range;
  • Client incentives as a percent of gross revenues: top end of the 16% to 16.5% range;
  • Marketing expenses: Less than $900 million;
  • Annual operating margin: About 60%;
  • GAAP tax rate: 36.5% to 37% range, excluding the revaluation of the Visa Europe put option;
  • Annual diluted class A common stock earnings per share growth of greater than 20%; and
  • Annual free cash flow in excess of $3 billion.

 

Visa Inc. affirms its financial outlook for the following metrics through 2012:

  • Annual net revenue growth: high single to low double digit range; and
  • Annual diluted class A common stock earnings per share growth: mid to high teens range.

 

Fiscal Third Quarter 2011 Earnings Results Conference Call Details:

Visa's executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) today to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at http://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 at http://investor.visa.com.

About Visa

Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks--VisaNet--that is capable of handling more than 20,000 transaction messages a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com.

Forward Looking Statements:

This press release contains forward--looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by the terms "expect," "will," "continue" and similar references to the future. Examples of such forward--looking statements include, but are not limited to, statements we make about gross and net revenue, client incentive payments, expenses, operating margin, tax rate, earnings per share, capital expenditures, free cash flow and the growth of those items.

By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are neither statements of historical fact nor guarantees of future performance and (iii) are subject to risks, uncertainties, assumptions and changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements because of a variety of factors, including the following:

  • the impact of new laws, regulations and marketplace barriers, particularly the rules recently promulgated under the Wall Street Reform and Consumer Protection Act, including:
    • rules expanding issuers' and retailers' choice among debit payment networks;
    • rules capping debit interchange rates;
    • the spread of regulation of debit payments to credit and other product categories;
    • the spread of U.S. regulations to other countries;
    • rules about consumer privacy and data use and security; and
    • designation as a systemically important payment system;
  • developments in current or future disputes and our ability to absorb their impact, including interchange; currency conversion; and tax;
  • macroeconomic factors such as:
    • global economic, political, health, environmental and other conditions;
    • cross-border activity and currency exchange rates; and
    • material changes in our clients' performance compared to our estimates;
  • industry and systemic developments, such as:
    • competitive pressure on client pricing and in the payments industry generally;
    • bank and merchant consolidation and their increased focus on payment card costs;
    • disintermediation from the payments value stream through government actions or bilateral agreements;
    • adverse changes in our relationships and reputation;
    • our clients' failure to fund settlement obligations we have guaranteed;
    • disruption of our transaction processing systems or the inability to process transactions efficiently;
    • rapid technological developments;
    • account data breaches and increased fraudulent and other illegal activity involving our cards; and
    • issues arising at Visa Europe, including failure to maintain interoperability between our systems;
  • costs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding stock;
  • loss of organizational effectiveness or key employees;
  • failure to integrate successfully CyberSource, PlaySpan, Fundamo or other acquisitions;
  • changes in accounting principles or treatment; and

 

the other factors discussed in our most recent Annual Report on Form 10--K. You should not place undue reliance on such statements. Unless required to do so by law, we do not intend to update or revise any forward--looking statement, because of new information or future developments or otherwise.

Contacts: Investor Relations: Jack Carsky or Victoria Hyde-Dunn, 415-932-2213, ir@visa.com Media Relations: Will Valentine, 415-932-2564, globalmedia@visa.com


VISA INC.








CONSOLIDATED STATEMENTS OF OPERATIONS








(UNAUDITED)

























Three Months Ended
June 30,


Nine Months Ended
June 30,


2011


2010


2011


2010


(in millions, except per share data)

Operating Revenues
















Service revenues

$ 1,055


$ 873


$ 3,156


$ 2,585

Data processing revenues

886


792


2,553


2,285

International transaction revenues

662


574


1,916


1,671

Other revenues

167


183


484


546

Client incentives

(448)


(393)


(1,304)


(1,139)

Total operating revenues

2,322


2,029


6,805


5,948









Operating Expenses








Personnel

363


285


1,071


869

Network and processing

91


103


251


306

Marketing

251


277


631


731

Professional fees

84


77


222


178

Depreciation and amortization

74


63


211


187

General and administrative

114


87


319


242

Litigation provision

-


-


6


(41)

Total operating expenses

977


892


2,711


2,472









Operating income

1,345


1,137


4,094


3,476









Other Income (Expense)








Interest expense

(11)


(13)


(19)


(57)

Investment income, net

88


1


107


29

Other

121


(3)


120


(5)

Total other income (expense)

198


(15)


208


(33)









Income before income taxes

1,543


1,122


4,302


3,443

Income tax provision

539


406


1,534


1,252









Net income including non-controlling interest

1,004

-

716


2,768


2,191

Loss attributable to non-controlling interest

1


-


2


1









Net income attributable to Visa Inc.

$ 1,005


$ 716


$ 2,770


$ 2,192









Basic earnings per share








Class A common stock

$ 1.43


$ 0.97


$ 3.90


$ 2.97

Class B common stock

$ 0.70


$ 0.56


$ 1.97


$ 1.72

Class C common stock

$ 1.43


$ 0.97


$ 3.90


$ 2.97









Basic weighted-average shares outstanding








Class A common stock

521


494


506


478

Class B common stock

245


245


245


245

Class C common stock

59


99


78


117









Diluted earnings per share








Class A common stock

$ 1.43


$ 0.97


$ 3.89


$ 2.96

Class B common stock

$ 0.70


$ 0.55


$ 1.96


$ 1.71

Class C common stock

$ 1.43


$ 0.97


$ 3.89


$ 2.96









Diluted weighted-average shares outstanding








Class A common stock

704


738


712


742

Class B common stock

245


245


245


245

Class C common stock

59


99


78


117



VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)






June 30,


September 30,


2011


2010


(in millions, except par value data)

Assets




Cash and cash equivalents

$ 3,600


$ 3,867

Restricted cash - litigation escrow

2,927


1,866

Investment securities




Trading

65


60

Available-for-sale

155


124

Settlement receivable

405


402

Accounts receivable

551


476

Customer collateral

897


899

Current portion of client incentives

195


175

Current portion of deferred tax assets

507


623

Prepaid expenses and other current assets

214


242





Total current assets

9,516


8,734





Restricted cash - litigation escrow

-


70

Investment securities, available-for-sale

7


24

Client incentives

109


101

Property, equipment and technology, net

1,510


1,357

Other assets

184


197

Intangible assets, net

11,453


11,478

Goodwill

11,668


11,447





Total assets

$ 34,447


$ 33,408









Liabilities




Accounts payable

$ 93


$ 137

Settlement payable

465


406

Customer collateral

897


899

Accrued compensation and benefits

334


370

Client incentives

606


418

Accrued liabilities

611


625

Current portion of long-term debt

13


12

Current portion of accrued litigation

512


631





Total current liabilities

3,531


3,498





Long-term debt

22


32

Accrued litigation

-


66

Deferred tax liabilities

4,254


4,181

Other liabilities

588


617





Total liabilities

8,395


8,394









Equity




Preferred stock, $0.0001 par value, 25 shares authorized and none issued

$ -


$ -

Class A common stock, $0.0001 par value, 2,001, 622 shares authorized, 519 and 493 shares issued and outstanding at June 30, 2011 and September 30, 2010, respectively

-


-

Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at June 30, 2011 and September 30, 2010

-


-

Class C common stock, $0.0001 par value, 1,097 shares authorized, 52 and 97 shares issued and outstanding at June 30, 2011 and September 30, 2010, respectively

-


-

Additional paid-in capital

20,056


20,794

Accumulated income

6,130


4,368

Accumulated other comprehensive income (loss), net




Investment securities, available-for-sale

-


3

Defined benefit pension and other postretirement plans

(112)


(115)

Derivative instruments classified as cash flow hedges

(33)


(40)

Foreign currency translation gain

9


1

Total accumulated other comprehensive loss, net

(136)


(151)





Total Visa Inc. stockholders' equity

26,050


25,011





Non-controlling interest

2


3

Total equity

26,052


25,014









Total liabilities and equity

$ 34,447


$ 33,408



VISA INC.




CONSOLIDATED STATEMENTS OF CASH FLOWS




(UNAUDITED)





Nine Months Ended June 30,






2011


2010


(in millions)

Operating Activities








Net income including non-controlling interest

$ 2,768


2,191

Adjustments to reconcile net income including non-controlling interest to net cash provided by (used in) operating activities:




Amortization of client incentives

1,304


1,139

Fair value adjustment for the Visa Europe put option

(122)


-

Share-based compensation

122


95

Excess tax benefit for share-based compensation

(12)


(13)

Depreciation and amortization of property, equipment and technology and intangible assets

211


187

Litigation provision and accretion

15


(18)

Net recognized gain on investment securities, including other-than-temporary impairment

(3)


(17)

Net recognized (gain) loss on other investments, including other-than-temporary impairment

(86)


3

Deferred income taxes

169


190

Other

(18)


(9)

Change in operating assets and liabilities:




Trading securities

(5)


3

Settlement receivable

3


189

Accounts receivable

(70)


(57)

Client incentives

(1,144)


(999)

Other assets

30


(27)

Accounts payable

(47)


(62)

Settlement payable

52


(188)

Accrued compensation and benefits

(37)


(107)

Accrued and other liabilities

74


195

Accrued litigation

(200)


(897)





Net cash provided by operating activities

3,004


1,798





Investing Activities




Acquisitions, net of cash received of $22

(268)


-

Purchases of property, equipment and technology

(236)


(144)

Proceeds from disposal of property, equipment and technology

-


1

Distributions from money market investment

-


85

Investment securities, available-for-sale:




Purchases

(50)


(1)

Proceeds from sales and maturities

35


50

Purchases of / contributions to other investments

(10)


(3)

Proceeds / distributions from other investments

104


2

Net cash used in investing activities

(425)


(10)





Financing Activities




Repurchase of class A common stock

(1,600)


(664)

Dividends paid

(320)


(278)

Deposits into litigation escrow account - retrospective responsibility plan

(1,200)


(500)

Payment from litigation escrow account - retrospective responsibility plan

210


210

Cash proceeds from exercise of stock options

63


36

Excess tax benefit for share-based compensation

12


13

Principal payments on debt

(9)


(9)

Principal payments on capital lease obligations

(10)


(10)

Net cash used in financing activities

(2,854)


(1,202)

Effect of exchange rate changes on cash and cash equivalents

8


2

(Decrease) increase in cash and cash equivalents

(267)


588

Cash and cash equivalents at beginning of year

3,867


4,617

Cash and cash equivalents at end of period

$ 3,600


$ 5,205









Supplemental Disclosure of Cash Flow Information








Income taxes paid, net of refunds

$ 1,251


$ 977

Amounts included in accounts payable and accrued and other liabilities related to purchases of property, equipment and technology

$ 17


$ 15

Interest payments on debt

$ 2


$ 3


VISA INC.













FISCAL 2010 AND 2011 QUARTERLY RESULTS OF OPERATIONS











(UNAUDITED)



























Fiscal 2010 Quarter Ended


Fiscal 2011 Quarter Ended


June 30,
2010





September 30,
2010


December 31,
2010


March 31,

2011


June 30,
2011


(in millions)

Operating Revenues










Service revenues

$ 873



$ 912


$ 1,008


$ 1,093


$ 1,055

Data processing revenues (1)

792



840


844


823


886

International transaction revenues

574



619


630


624


662

Other revenues (2)

183



167


161


156


167

Client incentives

(393)



(421)


(405)


(451)


(448)

Total operating revenues

2,029



2,117


2,238


2,245


2,322











Operating Expenses










Personnel

285



353


357


351


363

Network and processing (1)

103



119


80


80


91

Marketing (2)

277



233


197


183


251

Professional fees

77



108


61


77


84

Depreciation and amortization

63



78


67


70


74

General and administrative

87



117


110


95


114

Litigation provision

-



(4)


-


6


-

Total operating expenses

892



1,004


872


862


977











Operating income (1) (2)

1,137



1,113


1,366


1,383


1,345











Other Income (Expense)










Interest (expense) income

(13)



(15)


4


(12)


(11)

Investment income, net

1



20


10


9


88

Other

(3)



77


2


(3)


121

Total other (expense) income

(15)



82


16


(6)


198











Income before income taxes

1,122



1,195


1,382


1,377


1,543

Income tax provision

406



422


498


497


539

Net income including non-controlling interest

716



773


884


880


1004

Loss attributable to non-controlling interest

-




1


-


1


1

Net income attributable to Visa Inc. (1) (2)

$ 716



$ 774


$ 884


$ 881


$ 1,005





















(1) As previously announced, beginning in the first quarter of fiscal 2011, the Company changed its presentation for non-Visa transactions pass-through revenues and expenses from a gross reporting to a net reporting basis. Previously, pass-through revenues were recorded in data processing and related expenses were recorded in network and processing. This change in presentation does not impact operating income or net income attributable to Visa Inc. as revenue and expense amounts completely offset. On a quarterly basis, related fiscal 2010 revenues and expenses were $35 million in Q3 and $38 million in Q4. These amounts will not recur in fiscal 2011 as a result of this change in presentation.

(2) As previously announced, as a result of certain contractual changes relating to our Visa Extras rewards platform, certain fiscal 2010 revenues recorded in other revenues, and expenses recorded in marketing, will not recur in fiscal 2011. These changes do not impact operating income or net income attributable to Visa Inc. as revenue and expense amounts completely offset. On a quarterly basis, related fiscal 2010 revenues and expenses were $27 million in Q3 and $7 million in Q4.


Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended June 30, 2011, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 2011 and 2010, for cards carrying the Visa, Visa Electron and Interlink brands. Also included is a table with information on the number of billable transactions processed on Visa Inc.'s CyberSource network.

1. Branded Volume and Transactions

The tables present total volume, payments volume, and cash volume, and 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 years are provided for volume-based data.






For the 3 Months Ended June 30, 2011





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)













All Visa Credit & Debit












Asia Pacific

$377

21.8%

12.4%

$246

24.4%

13.7%

2,744

$130

17.2%

10.1%

593

Canada

60

13.7%

7.7%

55

14.3%

8.4%

474

5

6.9%

1.3%

10

CEMEA

204

32.1%

26.8%

35

42.9%

36.7%

530

169

30.1%

24.9%

991

LAC

245

32.2%

23.3%

86

38.3%

28.7%

1,830

159

29.1%

20.5%

911

US

624

10.2%

10.2%

518

10.5%

10.5%

10,415

106

8.8%

8.8%

901

Visa Inc.

1,510

19.0%

14.7%

941

17.3%

13.5%

15,993

569

22.1%

16.7%

3,407













Visa Credit Programs












US

$235

9.7%

9.7%

$224

9.8%

9.8%

2,569

$11

6.1%

6.1%

17

Rest of World

399

24.8%

15.5%

348

25.2%

15.7%

4,056

52

22.1%

14.8%

180

Visa Inc.

634

18.7%

13.3%

571

18.7%

13.3%

6,625

62

18.9%

13.1%

197













Visa Debit Programs












US

$390

10.5%

10.5%

$295

10.9%

10.9%

7,846

$95

9.1%

9.1%

885

Rest of World

487

27.4%

20.2%

75

35.5%

26.3%

1,522

412

26.0%

19.1%

2,326

Visa Inc.

876

19.3%

15.7%

369

15.2%

13.7%

9,368

507

22.5%

17.1%

3,211







For the 3 Months Ended March 31, 2011







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

$352

18.7%

12.4%

$230

18.5%

11.8%

2,629

$121

19.0%

13.5%

578

476

573

Canada

52

12.3%

7.3%

48

11.4%

6.5%

420

5

21.2%

15.8%

9

25

33

CEMEA

177

26.5%

24.9%

30

33.8%

31.2%

483

147

25.1%

23.7%

906

226

225

LAC

222

26.8%

20.5%

77

32.5%

25.9%

1,740

145

23.9%

17.8%

860

360

389

US

576

11.2%

11.2%

477

11.6%

11.6%

9,580

99

9.2%

9.2%

839

510

650

Visa Inc.

1,379

17.2%

14.4%

862

15.7%

13.1%

14,853

517

19.9%

16.6%

3,193

1,598

1,870















Visa Credit Programs














US

$209

7.6%

7.6%

$199

9.1%

9.1%

2,283

$10

-15.7%

-15.7%

15

197

256

Rest of World

364

19.2%

13.2%

318

19.1%

12.9%

3,825

46

19.9%

15.5%

163

444

504

Visa Inc.

573

14.7%

11.1%

517

15.1%

11.4%

6,108

56

11.7%

8.5%

177

641

760















Visa Debit Programs














US

$367

13.3%

13.3%

$278

13.4%

13.4%

7,297

$89

12.8%

12.8%

824

312

395

Rest of World

439

24.4%

19.9%

68

31.8%

26.1%

1,448

372

23.2%

18.9%

2,192

644

715

Visa Inc.

806

19.1%

16.8%

345

16.6%

15.7%

8,745

461

21.0%

17.6%

3,016

956

1,110







For the 3 Months Ended December 31, 2010







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

$361

13.6%

7.9%

$240

21.9%

15.3%

2,767

$121

0.2%

-4.1%

591

473

571

Canada

58

12.1%

7.6%

53

11.3%

6.8%

467

5

22.8%

17.9%

9

25

33

CEMEA

184

25.6%

26.6%

30

32.8%

31.5%

478

154

24.3%

25.7%

955

219

222

LAC

233

21.4%

19.0%

81

26.0%

25.8%

1,822

151

19.1%

15.6%

914

358

387

US

591

11.5%

11.5%

493

12.5%

12.5%

9,999

98

7.0%

7.0%

850

530

685

Visa Inc.

1,427

15.3%

13.3%

898

16.6%

14.5%

15,533

530

13.2%

11.3%

3,319

1,605

1,898















Visa Credit Programs














US

$226

5.4%

5.4%

$216

7.6%

7.6%

2,534

$10

-27.0%

-27.0%

16

205

267

Rest of World

381

20.1%

15.2%

334

19.8%

14.7%

4,008

48

22.6%

18.7%

167

442

503

Visa Inc.

608

14.2%

11.3%

550

14.7%

11.8%

6,542

58

9.5%

6.9%

183

647

770















Visa Debit Programs














US

$365

15.8%

15.8%

$277

16.6%

16.6%

7,465

$88

13.1%

13.1%

834

324

419

Rest of World

454

16.5%

14.1%

71

33.3%

30.0%

1,526

384

13.8%

11.6%

2,302

633

709

Visa Inc.

820

16.1%

14.8%

348

19.7%

19.1%

8,991

472

13.7%

11.9%

3,136

957

1,127







For the 3 Months Ended September 30, 2010







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

$326

16.2%

11.9%

$212

16.2%

12.2%

2,681

$114

16.2%

11.4%

595

467

556

Canada

53

10.4%

7.4%

49

10.2%

7.2%

450

5

12.0%

8.9%

9

24

32

CEMEA

164

22.1%

23.3%

27

26.4%

27.5%

418

137

21.3%

22.4%

860

208

212

LAC

204

22.4%

20.2%

69

24.0%

23.8%

1,634

135

21.6%

18.4%

873

356

385

US

574

12.3%

12.3%

474

13.5%

13.5%

9,758

100

7.1%

7.1%

870

502

668

Visa Inc.

1,320

15.8%

14.4%

830

15.1%

13.9%

14,941

491

16.9%

15.2%

3,207

1,557

1,852















Visa Credit Programs














US

$217

3.3%

3.3%

$207

6.4%

6.4%

2,431

$10

-35.9%

-35.9%

17

208

269

Rest of World

338

14.6%

11.6%

295

14.5%

11.5%

3,835

43

15.3%

12.5%

157

439

501

Visa Inc.

555

9.9%

8.2%

503

11.0%

9.3%

6,266

53

0.2%

-1.6%

174

647

770















Visa Debit Programs














US

$356

18.6%

18.6%

$266

19.7%

19.7%

7,327

$90

15.7%

15.7%

853

294

399

Rest of World

409

22.2%

20.1%

61

34.2%

32.4%

1,347

348

20.3%

18.1%

2,180

616

683

Visa Inc.

765

20.5%

19.4%

327

22.1%

21.8%

8,675

438

19.3%

17.6%

3,033

910

1,082







For the 3 Months Ended June 30, 2010







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

$309

19.3%

12.4%

$198

19.9%

12.5%

2,580

$111

18.1%

12.3%

581

458

545

Canada

53

17.5%

7.5%

48

18.1%

8.1%

434

5

11.5%

2.1%

9

24

31

CEMEA

154

27.0%

25.7%

24

30.9%

28.5%

394

130

26.3%

25.2%

852

203

204

LAC

185

23.2%

16.3%

62

25.8%

21.1%

1,519

123

21.9%

14.0%

849

353

382

US

567

12.1%

12.1%

469

13.8%

13.8%

9,515

97

4.9%

4.9%

855

492

675

Visa Inc.

1,269

17.3%

14.1%

802

16.8%

14.0%

14,441

467

18.0%

14.3%

3,145

1,530

1,837















Visa Credit Programs














US

$214

2.3%

2.3%

$204

5.9%

5.9%

2,347

$10

-39.3%

-39.3%

17

210

274

Rest of World

320

18.7%

11.7%

278

18.6%

11.6%

3,679

42

19.3%

12.4%

155

436

499

Visa Inc.

534

11.5%

7.9%

481

12.9%

9.2%

6,026

53

0.2%

-3.1%

171

646

772















Visa Debit Programs














US

$353

19.1%

19.1%

$266

20.6%

20.6%

7,168

$87

14.8%

14.8%

838

282

401

Rest of World

382

24.5%

19.3%

55

38.0%

31.0%

1,248

327

22.4%

17.5%

2,136

601

664

Visa Inc.

735

21.8%

19.2%

321

23.3%

22.4%

8,415

414

20.7%

17.0%

2,974

884

1,065






For the 12 Months Ended June 30, 2011





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)













All Visa Credit & Debit












Asia Pacific

$1,416

17.6%

11.1%

$929

20.3%

13.3%

10,821

$487

12.6%

7.2%

2,357

Canada

224

12.2%

7.5%

204

11.9%

7.2%

1,811

19

15.3%

10.5%

38

CEMEA

729

26.7%

25.5%

122

34.3%

32.0%

1,909

607

25.3%

24.2%

3,713

LAC

903

25.7%

20.8%

313

30.3%

26.2%

7,025

590

23.4%

18.1%

3,558

US

2,365

11.3%

11.3%

1,962

12.0%

12.0%

39,753

403

8.0%

8.0%

3,460

Visa Inc.

5,637

16.9%

14.2%

3,530

16.2%

13.8%

61,320

2,106

18.0%

14.9%

13,126













Visa Credit Programs












US

$887

6.5%

6.5%

$846

8.2%

8.2%

9,817

$41

-20.5%

-20.5%

65

Rest of World

1,482

19.8%

14.0%

1,294

19.7%

13.8%

15,724

188

20.1%

15.4%

666

Visa Inc.

2,369

14.4%

11.0%

2,140

14.9%

11.5%

25,541

229

10.0%

6.8%

731













Visa Debit Programs












US

$1,478

14.4%

14.4%

$1,116

15.0%

15.0%

29,935

$362

12.6%

12.6%

3,395

Rest of World

1,789

22.6%

18.5%

274

33.7%

28.5%

5,843

1,515

20.7%

16.8%

9,000

Visa Inc.

3,267

18.7%

16.6%

1,390

18.2%

17.4%

35,778

1,877

19.1%

16.0%

12,395






For the 12 Months Ended June 30, 2010








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

$1,205

22.8%

13.6%

$772

21.3%

11.3%

10,056

$433

25.5%

18.0%

2,237

458

545

Canada

199

14.9%

3.0%

182

17.4%

5.2%

1,663

17

-6.5%

-16.3%

35

24

31

CEMEA

575

13.4%

14.6%

91

21.3%

17.6%

1,425

484

12.1%

14.0%

3,155

203

204

LAC

718

23.5%

14.3%

240

27.3%

18.6%

5,837

478

21.7%

12.3%

3,355

353

382

US

2,126

6.1%

6.1%

1,752

8.1%

8.1%

35,241

373

-2.2%

-2.2%

3,142

492

675

Visa Inc.

4,823

13.6%

10.0%

3,038

13.5%

9.8%

54,222

1,785

13.7%

10.4%

11,926

1,530

1,837















Visa Credit Programs














US

$833

-5.4%

-5.4%

$782

-0.4%

-0.4%

9,139

$51

-46.5%

-46.5%

73

210

274

Rest of World

1,238

17.7%

8.6%

1,081

19.4%

9.8%

14,222

157

7.1%

1.1%

573

436

499

Visa Inc.

2,071

7.2%

2.7%

1,862

10.2%

5.4%

23,361

208

-14.1%

-16.7%

646

646

772















Visa Debit Programs














US

$1,292

15.2%

15.2%

$971

16.0%

16.0%

26,101

$322

12.7%

12.7%

3,069

282

401

Rest of World

1,460

22.5%

17.3%

205

36.1%

26.0%

4,759

1,255

20.5%

16.0%

8,210

601

664

Visa Inc.

2,752

18.9%

16.3%

1,175

19.0%

17.7%

30,860

1,577

18.8%

15.3%

11,280

884

1,065


Footnote

The preceding tables present regional total volume, payments volume and cash volume, and 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 years 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. Effective with the 3 months ended September, 2009, Pakistan and Afghanistan were moved from the AP to CEMEA region. 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 year-over-year 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.

2. Cross Border Volume

The table below represents cross border volume growth for cards carrying the Visa, Visa Electron, Interlink and PLUS brands. Cross border volume refers to payments and cash volume where the issuing country is different from the merchant country.


Period

Growth (Nominal USD)

Growth (Constant USD)




3 Months Ended



Jun 30, 2011

20%

14%

Mar 31, 2011

16%

13%

Dec 31, 2010

16%

15%

Sep 30, 2010

16%

16%

Jun 30, 2010

20%

17%




12 Months Ended



Jun 30, 2011

17%

14%

Jun 30, 2010

8%

6%


3. Visa Processed Transactions

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa's networks. CyberSource transactions are not included in this table and are reported in the next section.


Period

Processed Transactions (millions)

Growth




3 Months Ended



Jun 30, 2011

13,038

11%

Mar 31, 2011

12,040

13%

Dec 31, 2010

12,580

15%

Sep 30, 2010

12,119

16%

Jun 30, 2010

11,721

14%




12 Months Ended



Jun 30, 2011

49,778

14%

Jun 30, 2010

43,755

12%


4. CyberSource Transactions

The table below represents billable transactions processed on Visa Inc.'s CyberSource network.


Period

Billable Transactions (millions)

Growth




3 Months Ended



Jun 30, 2011

1,045

38%

Mar 31, 2011

1,018

38%

Dec 31, 2010

987

40%

Sep 30, 2010

829

36%

Jun 30, 2010

758

31%




12 Months Ended



Jun 30, 2011

3,879

38%

Jun 30, 2010

2,814

31%


SOURCE Visa Inc.