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SMALL BUSINESS
Visa Inc. Posts Strong Fiscal First Quarter 2009 Earnings Results and Reaffirms 2009 Adjusted Diluted Earnings Per Share Guidance
- Adjusted quarterly net income of
- GAAP quarterly net income of
- Payments volume growth of 12% over the prior year to
Net operating revenue in the fiscal first quarter of 2009 was
"We are very pleased with our fiscal first quarter earnings results and our ability to deliver strong operating performance," said
"Even though we now foresee tougher economic trends in the second half of fiscal 2009 with resulting net revenue growth likely in the low single digits, we remain stead-fast in our ability to meet our 2009 EPS guidance," added Saunders. "Rationalizing our expense structure and further leveraging operational efficiencies within the organization remain priorities. These directives, coupled with providing innovative products and services along with the global expansion of our business, will further support our long-term success."
Fiscal First Quarter 2009 Financial Highlights:
Visa Inc.'s operational performance highlights for the fiscal first quarter, as measured by business activity through
- Payments volume grew 12% over the prior year to
$701 billion ; - Total volume, inclusive of cash volume was
$1.1 trillion , an increase of 16% over the prior year; - Total cards carrying the Visa brands rose 10% worldwide over the prior year to 1.7 billion; and
- Total payment transactions increased by 13% over the prior year to 14.5 billion.
Total processed transactions, which represent transactions processed by VisaNet through
For the fiscal first quarter 2009, service revenues were
Adjusted total operating expenses were
Cash, cash equivalents, restricted cash, and available-for-sale investment securities were
Notable Events:
In
In
On
Financial Outlook:
Visa Inc. updates its financial outlook for the following metric for full-year 2009:
- Annual net revenue growth in the high single-digits
Visa Inc. affirms its financial outlook for the following metrics through 2010 with the caveat that annual net revenue growth may be somewhat challenged in 2010 if the current economic environment in the U.S. and around the globe persists beyond 2009:
- Annual net revenue growth at the lower end of the 11% to 15% range;
- Annual adjusted operating margin in the mid-to-high 40% range;
- Annual adjusted diluted class A common earnings per share growth of greater than 20%;
- Annual free cash flow in excess of
$1 billion ; and - Capital expenditures in the range of
$300 to $350 million in 2009 and representing 3 to 4% of gross revenues in 2010.
This outlook reflects an assumed 40% percent GAAP tax rate for fiscal year 2009. The company's intent is to reduce this rate to a level around 35-36% over the next four years.
Fiscal First Quarter 2009 Earnings Results Conference Call Details:
Visa's executive management team will host a live audio webcast beginning at
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 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, visit www.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
Contacts:
Investor Relations: Jack Carsky or Victoria Hyde-Dunn, 415-932-2213,
ir@visa.com
Media Relations: Paul Cohen or Sandra Chu, 415-932-2564,
globalmedia@visa.com
Visa Inc. Selected Consolidated Statements of Operations (unaudited) For the three months ended December 31, --------------------- 2008 2007 ---- ---- (in millions except per share data)
Operating Revenues Service revenues $793 $732 Data processing revenues 554 492 International transaction revenues 505 381 Other revenues 156 133 Volume and support incentives (269) (250) ---- ---- Total operating revenues 1,739 1,488 ----- -----
Operating Expenses Personnel 275 283 Network, EDP and communications 93 83 Advertising, marketing and promotion 210 210 Professional and consulting fees 80 98 Depreciation and amortization 52 62 Administrative and other 63 74 Litigation provision - - --- --- Total operating expenses 773 810 --- ---
Operating income 966 678 --- ---
Other Income (Expense) Equity in earnings of unconsolidated affiliates (1) 1 Interest expense (30) (45) Investment income, net 19 41 Other (1) 8 --- --- Total other (expense) income (13) 5 --- ---
Income before income taxes and minority interest 953 683 Income tax expense 379 259 --- --- Income before minority interest 574 424 Minority interest - - ---
Net income $574 $424 ==== ====
Basic net (loss) income per share All regional classes and series of common stock $0.55 ===== Class A common stock $0.74 ===== Class B common stock $0.52 ===== Class C common stock $0.74 ===== Basic weighted average shares outstanding All regional classes and series of common stock 775 === Class A common stock 446 === Class B common stock 245 === Class C common stock 152 === Diluted net income per share All regional classes and series of common stock $0.55 ===== Class A common stock $0.74 ===== Class B common stock $0.52 ===== Class C common stock $0.74 ===== Diluted weighted average shares outstanding All regional classes and series of common stock 775 === Class A common stock 772 === Class B common stock 245 === Class C common stock 152 ===
Visa Inc. Selected Consolidated Balance Sheets (unaudited) December 31, September 30, 2008 2008 ------------ ------------- (in millions except par value and share data) Assets Cash and cash equivalents $2,613 $4,979 Restricted cash - litigation escrow 2,078 1,298 Investment securities Trading 86 - Available-for-sale 103 355 Settlement receivable 745 1,131 Accounts receivable 378 342 Customer collateral 661 679 Current portion of volume and support incentives 233 256 Current portion of deferred tax assets 800 944 Prepaid and other current assets 392 1,190 --- -----
Total current assets 8,089 11,174
Restricted cash - litigation escrow 560 630 Investment securities, available-for-sale 205 244 Volume and support incentives 127 123 Property, equipment and technology, net 1,117 1,080 Other assets 628 634 Intangible assets 10,883 10,883 Goodwill 10,213 10,213 ------ ------
Total assets 31,822 34,981 ======= =======
Liabilities Accounts payable $93 $159 Settlement payable 642 1,095 Customer collateral 661 679 Accrued compensation and benefits 262 420 Volume and support incentives 245 249 Accrued liabilities 362 306 Current portion of long-term debt 51 51 Current portion of accrued litigation 2,296 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 4,612 7,165
Long-term debt 53 55 Accrued litigation 1,009 1,060 Deferred tax liabilities 3,843 3,811 Other liabilities 660 613 --- ---
Total liabilities 10,177 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 --- -----
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, 448,876,279 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 - - Class C common stock, $0.0001 par value, 1,097,165,602 shares authorized, 151,602,324 issued and 151,587,829 outstanding at December 31, 2008 - - 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 21,059 21,060 Class C treasury stock, 14,495 shares, and 525,443 shares, respectively (2) (35) Accumulated income 677 186 Accumulated other comprehensive loss, net (94) (70) --- --- Total stockholders' equity and accumulated income 21,640 21,141 ------ ------
Total liabilities, temporary equity and minority interest, and stockholders' equity $31,822 $34,981 ======= =======
Visa Inc. Selected Consolidated Statements Of Cash Flows (unaudited) For the Three Months Ended December 31, ------------------ 2008 2007 ---- ---- (in millions) Operating Activities
Net income $574 $424 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property, equipment and technology 52 62 Amortization of intangibles, investments, debt issuance costs and accretion of member deposits - 1 Share-based compensation 32 - Interest earned on litigation escrow, net of tax (7) - Net recognized loss on investment securities, including other-than- temporary impairment 7 2 Asset impairment 1 - Gain on disposal of property, equipment and technology - (1) Amortization of volume and support incentives 269 250 Accrued litigation and accretion 25 39 Equity in earnings of unconsolidated affiliates 1 (1) Deferred income taxes 179 (9) Change in operating assets and liabilities: Trading securities 7 - Accounts receivable (36) (29) Settlement receivable 386 (567) Volume and support incentives (254) (269) Other assets 95 (27) Accounts payable (66) (89) Settlement payable (453) 368 Accrued compensation and benefits (157) (166) Accrued and other liabilities 59 198 Accrued litigation (529) (1) Member deposits - (3) --- ---
Net cash provided by operating activities 185 182 --- ---
Investing Activities
Investment securities, available-for-sale: Purchases - (1,257) Proceeds from sales and maturities 195 1,732 Distribution of money market investment 775 - Non-marketable securities - (160) Cash acquired through reorganization - 1,002 Purchases of/contributions to other investments (1) - Dividends/distributions from other investments - 1 Purchases of property, equipment and technology (68) (71) Proceeds from sale of property, equipment and technology - 4 - -
Net cash provided by investing activities 901 1,251 --- -----
Financing Activities
Proceeds from short-term borrowing - 2 Payments on short-term borrowing - (2) Funding of litigation escrow account - Retrospective Responsibility Plan (1,100) - Payments from litigation escrow account - Retrospective Responsibility Plan 397 - Payment for redemption of stock (2,646) - Dividends paid (81) - Principal payments on debt (2) (9) Principal payments on capital lease obligations - (1) --- --- Net cash used in financing activities (3,432) (10) ------ ---
Effect of exchange rate translation on cash and cash equivalents (20) - --- --- (Decrease) increase in cash and cash equivalents (2,366) 1,423 Cash and cash equivalents at beginning of year 4,979 275 ----- ---
Cash and cash equivalents at end of period $2,613 $1,698 ====== ======
Supplemental Disclosure of Cash Flow Information Income taxes paid, net of refunds $4 $5 Amounts included in accounts payable and accrued and other liabilities related to $21 $2 purchases of property, equipment and technology Interest payments on debt $1 $1 Common stock issued in acquisition $- $16,785 Assets acquired in joint venture with note payable and equity interest issued $22 $-
Adjusted Operating Income and Net Income US$ in millions
For the Three For the Three Months Ended Months Ended December 31, December 31, 2008 2007 ------------- -------------
Net income (as reported) $574 $424 Addback: Income tax expense (as reported) 379 259 --- --- Net income before taxes (as reported) $953 $683
Adjustments: Restructuring (1) 28 36 Asset step-up amortization (2) 17 17 --- --- Adjustments to operating income 45 53
Interest accretion on American Express settlement (3) 10 23 Interest expense on Discover settlement (4) 3 - Investment income on Litigation Escrow and EU proceeds (5) (13) - Underwater contract (LIBOR adjustment) (6) - (8) --- --- Adjustments to non-operating income - 15
Total adjustments 45 68
Adjusted net income before tax 998 751 Adjusted income tax expense (7) (399) (308) ---- ---- Adjusted net income $599 $443 ==== ====
Operating income (as reported) $966 $678 Addback: Adjustments to operating income 45 53 --- --- Adjusted operating income $1,011 $731 ====== ==== Operating revenues (as reported) $1,739 $1,488 Adjusted operating margin 58% 49%
Total operating expenses (as reported) $773 $810 Less: Adjustments to operating expenses (45) (53) --- --- Adjusted operating expenses $728 $757 ==== ====
(1) Restructuring costs associated with workforce consolidation and elimination of overlapping functions. (2) Non-cash amortization and depreciation of the incremental basis in technology and building assets acquired in the reorganization. (3) Non-cash interest expense recorded on future payments to be made under the settlement agreement with American Express. These payments will be paid from the litigation escrow account. (4) Interest expense recorded on future payments to be made under the settlement agreement with Discover. These payments will be paid from the litigation escrow account. (5) Investment income earned during the period on all IPO proceeds held, including amounts held in the litigation escrow and amounts the Company used in October 2008 to redeem all class C (series II) common stock and a portion of the class C (series III) common stock outstanding. (6) Other expense (income) recorded in the periods presented as a result of changes in the Company's estimated liability under the Framework Agreement, which governs its relationship with Visa Europe. The changes were primarily due to movement in the LIBOR rates in the periods presented. This liability terminated after the October 2008 redemptions described above. (7) Reflects a normalized tax rate of 40% and 41% for fiscal 2009, and 2008, respectively.
Reconciliation of Non-GAAP Adjusted Operating Expenses US$ in millions
For the Three Months For the Three Months Ended December 31, 2008 Ended December 31, 2007 As As Adju- Adju- Actual Adjustments sted Actual Adjustments sted ------ ----------- ----- ------ ----------- ----- Personnel $275 $(27) (1) $248 $283 $(27) (1) $256 Network, EDP and communications 93 - 93 83 - 83 Advertising, marketing and promotions 210 - 210 210 - 210 Professional and consulting fees 80 (1) (1) 79 98 (9) (1) 89 Depreciation and amortization 52 (17) (2) 35 62 (17) (2) 45 Administrative and other 63 - 63 74 - 74 Litigation provision - - - - - - --- --- --- --- --- --- Total operating expenses $773 $(45) $728 $810 $(53) $757 ---- ---- ---- ---- ---- ----
(1) Restructuring (2) Asset step-up amortization
Reconciliation of Non-GAAP Adjusted Non-operating (Expense) Income US$ in millions
For the Three Months For the Three Months Ended December 31, 2008 Ended December 31, 2007 As As Adju- Adju- Actual Adjustments sted Actual Adjustments sted ------ ----------- ----- ------ ----------- ----- Equity in earnings of unconsolidated affiliates $(1) - $(1) $1 - $1 Interest expense (30) 13 (1) (17) (45) 23 (1) (22) Investment income, net 19 (13) (2) 6 41 - 41 Other (1) - (1) 8 (8) (3) - --- --- --- --- --- --- Total other (expense) income $(13) - $(13) $5 15 $20 ---- --- ---- --- --- ---
(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)
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. 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.
For the Three For the Three Months Ended Months Ended December 31, December 31, 2008 2007 ------------- ------------- (in millions, except per share data)
Adjusted net income $599 $443
Weighted average number of diluted shares outstanding 772 775 ----- ----- Adjusted diluted earnings per share $0.78 $0.57 ----- -----
Operational Performance Data
The tables below provide information regarding the operational results for the 3 months ended
1. Branded Volume and Transactions
The tables present Payments Volume, Cash Volume, Total Volume, the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior periods are provided for volume-based data.
For the 3 Months Ended September 30, 2008
Total Growth Growth Payments Volume (Nominal (Constant Volume ($ billions) USD) USD) ($ billions) ------------ ------- -------- ------------ All Visa Credit & Debit Asia Pacific $250 16.4% 20.4% $163 Canada 50 5.5% 9.1% 44 CEMEA 144 43.4% 44.4% 21 LAC 159 31.3% 26.5% 51 US 524 7.1% 7.1% 421 Visa Inc. 1,127 15.9% 16.4% 701
Visa Credit Programs US $244 1.7% 1.7% $213 Rest of World 280 15.6% 18.9% 239 Visa Inc. 525 8.7% 10.2% 452
Visa Debit Programs US $280 12.4% 12.4% $208 Rest of World 322 33.8% 32.7% 41 Visa Inc. 602 22.9% 22.5% 249
For the 3 Months Ended September 30, 2008 Payments Growth Growth Trans- Cash Nominal (Constant actions Volume USD) USD) (millions) ($ billions) ------- ------- --------- ------------ All Visa Credit & Debit Asia Pacific 16.3% 20.5% 2,144 $87 Canada 6.9% 10.6% 395 5 CEMEA 38.6% 42.1% 280 123 LAC 33.0% 28.5% 1,236 108 US 8.6% 8.6% 7,680 103 Visa Inc. 12.5% 13.4% 11,736 426
Visa Credit Programs US 3.5% 3.5% 2,360 $31 Rest of World 16.1% 19.2% 3,114 41 Visa Inc. 9.8% 11.2% 5,475 73
Visa Debit Programs US 14.4% 14.4% 5,320 $71 Rest of World 37.5% 37.8% 941 282 Visa Inc. 17.6% 17.6% 6,261 353
For the 3 Months Ended September 30, 2008 Cash Growth Growth Trans- (Nominal (Constant actions Accounts Cards USD) USD) (millions) (millions) (millions) ------- ------- -------- -------- -------- All Visa Credit & Debit Asia Pacific 16.6% 20.1% 525 400 480 Canada -4.9% -1.6% 9 24 32 CEMEA 44.3% 44.8% 671 169 176 LAC 30.5% 25.5% 798 301 334 US 1.5% 1.5% 743 478 654 Visa Inc. 21.9% 21.7% 2,747 1,371 1,676
Visa Credit Programs US -9.2% -9.2% 30 266 339 Rest of World 12.9% 17.4% 153 410 473 Visa Inc. 2.1% 4.2% 183 675 812
Visa Debit Programs US 7.1% 7.1% 714 212 314 Rest of World 33.3% 32.0% 1,850 484 549 Visa Inc. 27.0% 26.1% 2,564 695 864
For the 3 Months Ended June 30, 2008
Total Growth Growth Payments Volume (Nominal (Constant Volume ($ billions) USD) USD) ($ billions) ------------ ------- -------- ------------ All Visa Credit & Debit Asia Pacific $250 24.3% 21.1% $162 Canada 51 14.3% 10.3% 45 CEMEA 131 45.8% 40.7% 19 LAC 155 35.4% 22.9% 50 US 526 8.8% 8.8% 423 Visa Inc. 1,113 19.2% 16.5% 699
Visa Credit Programs US $246 4.7% 4.7% $213 Rest of World 278 21.7% 17.9% 238 Visa Inc. 524 13.1% 11.3% 450
Visa Debit Programs US $280 12.6% 12.6% $210 Rest of World 309 39.4% 31.0% 38 Visa Inc. 589 25.3% 21.6% 248
For the 3 Months Ended June 30, 2008 Payments Growth Growth Trans- Cash Nominal (Constant actions Volume USD) USD) (millions) ($ billions) ------- ------- --------- ------------ All Visa Credit & Debit Asia Pacific 22.4% 18.9% 2,032 $88 Canada 14.5% 10.4% 383 6 CEMEA 37.8% 38.1% 255 112 LAC 40.3% 27.5% 1,160 105 US 9.8% 9.8% 7,659 103 Visa Inc. 15.2% 13.6% 11,489 414
Visa Credit Programs US 5.0% 5.0% 2,334 $34 Rest of World 22.6% 18.3% 2,969 40 Visa Inc. 13.6% 11.6% 5,303 74
Visa Debit Programs US 15.0% 15.0% 5,325 $69 Rest of World 40.3% 31.9% 860 271 Visa Inc. 18.3% 17.3% 6,185 340
For the 3 Months Ended June 30, 2008 Cash Growth Growth Trans- (Nominal (Constant actions Accounts Cards USD) USD) (millions) (millions) (millions) ------- ------- -------- -------- -------- All Visa Credit & Debit Asia Pacific 28.0% 25.5% 498 387 472 Canada 13.0% 9.0% 9 24 31 CEMEA 47.2% 41.2% 640 159 168 LAC 33.2% 20.8% 754 303 328 US 4.9% 4.9% 738 465 643 Visa Inc. 26.6% 21.8% 2,639 1,338 1,642
Visa Credit Programs US 2.9% 2.9% 29 262 335 Rest of World 16.4% 15.3% 146 404 464 Visa Inc. 9.8% 9.3% 175 666 799
Visa Debit Programs US 5.9% 5.9% 708 203 308 Rest of World 39.3% 30.8% 1,756 470 536 Visa Inc. 30.9% 24.9% 2,464 673 844
For the 3 Months Ended March 31, 2008
Total Growth Growth Payments Volume (Nominal (Constant Volume ($ billions) USD) USD) ($ billions) ------------ ------- -------- ------------ All Visa Credit & Debit Asia Pacific $245 29.4% 21.2% $159 Canada 47 30.9% 10.0% 41 CEMEA 114 40.8% 36.6% 17 LAC 143 37.8% 21.8% 46 US 488 10.8% 10.8% 388 Visa Inc. 1,036 22.0% 17.0% 652
Visa Credit Programs US $231 8.0% 8.0% $195 Rest of World 268 28.5% 17.9% 229 Visa Inc. 499 18.1% 13.1% 424
Visa Debit Programs US $257 13.5% 13.5% $193 Rest of World 280 39.6% 28.7% 35 Visa Inc. 537 25.8% 21.0% 228
For the 3 Months Ended March 31, 2008 Payments Growth Growth Trans- Cash Nominal (Constant actions Volume USD) USD) (millions) ($ billions) ------- ------- --------- ------------ All Visa Credit & Debit Asia Pacific 26.5% 18.1% 1,913 $85 Canada 30.5% 9.7% 337 6 CEMEA 40.4% 38.9% 236 96 LAC 47.5% 30.1% 1,123 97 US 12.0% 12.0% 7,078 100 Visa Inc. 19.1% 15.0% 10,687 384
Visa Credit Programs US 8.1% 8.1% 2,167 $36 Rest of World 29.5% 18.2% 2,798 39 Visa Inc. 18.7% 13.3% 4,964 75
Visa Debit Programs US 16.3% 16.3% 4,911 $64 Rest of World 44.1% 31.7% 812 245 Visa Inc. 19.8% 18.4% 5,723 309
For the 3 Months Ended March 31, 2008 Cash Growth Growth Trans- (Nominal (Constant actions Accounts Cards USD) USD) (millions) (millions) (millions) ------- ------- -------- -------- -------- All Visa Credit & Debit Asia Pacific 35.2% 27.4% 458 376 457 Canada 33.8% 12.5% 9 24 31 CEMEA 40.9% 36.2% 584 148 156 LAC 33.7% 18.2% 719 288 312 US 6.5% 6.5% 689 456 664 Visa Inc. 27.2% 20.6% 2,460 1,291 1,620
Visa Credit Programs US 7.5% 7.5% 30 260 368 Rest of World 23.0% 16.1% 134 387 446 Visa Inc. 15.0% 11.8% 164 647 814
Visa Debit Programs US 6.0% 6.0% 659 196 296 Rest of World 38.9% 28.3% 1,636 448 510 Visa Inc. 30.6% 23.0% 2,296 644 806
For the 3 Months Ended December 31, 2007
Total Growth Growth Payments Volume (Nominal (Constant Volume ($ billions) USD) USD) ($ billions) ------------ ------- -------- ------------ All Visa Credit & Debit Asia Pacific $241 28.4% 23.0% $158 Canada 51 29.3% 13.6% 45 CEMEA 115 43.8% 38.9% 18 LAC 145 33.3% 21.3% 47 US 515 11.4% 11.4% 413 Visa Inc. 1,067 21.5% 17.8% 680
Visa Credit Programs US $253 9.1% 9.1% $218 Rest of World 272 26.7% 19.5% 232 Visa Inc. 525 17.6% 14.3% 450
Visa Debit Programs US $261 13.7% 13.7% $195 Rest of World 281 39.1% 29.8% 36 Visa Inc. 542 25.6% 21.5% 231
For the 3 Months Ended December 31, 2007 Payments Growth Growth Trans- Cash Nominal (Constant actions Volume USD) USD) (millions) ($ billions) ------- ------- --------- ------------ All Visa Credit & Debit Asia Pacific 24.3% 19.6% 1,931 $83 Canada 28.5% 12.8% 382 6 CEMEA 44.1% 40.1% 235 97 LAC 44.1% 30.5% 1,132 99 US 12.4% 12.4% 7,413 102 Visa Inc. 18.5% 15.7% 11,093 387
Visa Credit Programs US 9.7% 9.7% 2,462 $36 Rest of World 27.3% 19.7% 2,863 40 Visa Inc. 18.1% 14.6% 5,325 75
Visa Debit Programs US 15.5% 15.5% 4,951 $66 Rest of World 43.5% 32.9% 817 245 Visa Inc. 19.1% 17.9% 5,768 311
For the 3 Months Ended December 31, 2007 Cash Growth Growth Trans- (Nominal (Constant actions Accounts Cards USD) USD) (millions) (millions) (millions) ------- ------- -------- -------- -------- All Visa Credit & Debit Asia Pacific 36.9% 29.9% 452 368 446 Canada 36.5% 19.9% 9 23 31 CEMEA 43.8% 38.7% 590 139 147 LAC 28.8% 17.4% 757 284 307 US 7.7% 7.7% 716 455 660 Visa Inc. 27.3% 21.8% 2,524 1,269 1,591
Visa Credit Programs US 5.9% 5.9% 33 259 365 Rest of World 23.2% 18.5% 136 372 431 Visa Inc. 14.4% 12.2% 169 630 796
Visa Debit Programs US 8.7% 8.7% 683 197 295 Rest of World 38.5% 29.4% 1,672 442 500 Visa Inc. 30.9% 24.4% 2,355 639 795
For the 3 Months Ended September 30, 2007
Total Growth Growth Payments Volume (Nominal (Constant Volume ($ billions) USD) USD) ($ billions) ------------ ------- -------- ------------ All Visa Credit & Debit Asia Pacific $215 25.6% 20.6% $140 Canada 47 22.7% 12.9% 42 CEMEA 101 43.0% 38.8% 15 LAC 121 26.7% 18.9% 38 US 489 9.6% 9.6% 388 Visa Inc. 972 18.4% 15.7% 623
Visa Credit Programs US $240 6.7% 6.7% $206 Rest of World 243 22.5% 17.1% 206 Visa Inc. 483 14.1% 11.6% 412
Visa Debit Programs US $249 12.6% 12.6% $182 Rest of World 241 36.0% 28.6% 29 Visa Inc. 489 23.0% 20.0% 212
For the 3 Months Ended September 30, 2007 Payments Growth Growth Trans- Cash Nominal (Constant actions Volume USD) USD) (millions) ($ billions) ------- ------- --------- ------------ All Visa Credit & Debit Asia Pacific 22.1% 17.5% 1,796 $74 Canada 21.4% 11.8% 362 6 CEMEA 39.0% 35.6% 211 85 LAC 38.5% 29.5% 1,004 83 US 10.7% 10.7% 7,035 101 Visa Inc. 15.9% 13.8% 10,407 349
Visa Credit Programs US 8.5% 8.5% 2,314 $35 Rest of World 23.6% 17.8% 2,654 37 Visa Inc. 15.6% 12.9% 4,968 71
Visa Debit Programs US 13.4% 13.4% 4,721 $67 Rest of World 39.6% 31.3% 718 211 Visa Inc. 16.4% 15.6% 5,439 278
For the 3 Months Ended September 30, 2007 Cash Growth Growth Trans- (Nominal (Constant actions Accounts Cards USD) USD) (millions) (millions) (millions) ------- ------- -------- -------- -------- All Visa Credit & Debit Asia Pacific 32.8% 26.8% 417 348 427 Canada 33.0% 22.5% 9 23 31 CEMEA 43.8% 39.4% 545 125 136 LAC 21.9% 14.6% 691 267 289 US 5.7% 5.7% 730 440 642 Visa Inc. 23.3% 19.3% 2,392 1,203 1,526
Visa Credit Programs US -2.8% -2.8% 34 253 358 Rest of World 16.4% 13.5% 128 353 410 Visa Inc. 6.2% 4.8% 162 607 769
Visa Debit Programs US 10.7% 10.7% 696 187 284 Rest of World 35.5% 28.3% 1,534 409 473 Visa Inc. 28.6% 23.6% 2,230 596 757
For the 3 Months Ended June 30, 2007
Total Growth Growth Payments Volume (Nominal (Constant Volume ($ billions) USD) USD) ($ billions) ------------ ------- -------- ------------ All Visa Credit & Debit Asia Pacific $201 20.6% 16.6% $132 Canada 45 18.2% 12.0% 40 CEMEA 90 38.7% 37.3% 14 LAC 114 32.4% 18.9% 35 US 483 9.5% 9.5% 385 Visa Inc. 933 17.1% 14.6% 606
Visa Credit Programs US $235 6.4% 6.4% $203 Rest of World 228 19.8% 16.1% 194 Visa Inc. 464 12.6% 11.0% 396
Visa Debit Programs US $248 12.7% 12.7% $183 Rest of World 222 34.2% 24.9% 27 Visa Inc. 470 21.9% 18.3% 210
For the 3 Months Ended June 30, 2007 Payments Growth Growth Trans- Cash Nominal (Constant actions Volume USD) USD) (millions) ($ billions) ------- ------- --------- ------------ All Visa Credit & Debit Asia Pacific 19.9% 16.8% 1,708 $69 Canada 17.4% 11.3% 352 5 CEMEA 32.4% 32.8% 197 76 LAC 41.8% 27.7% 945 79 US 10.4% 10.4% 6,904 98 Visa Inc. 14.7% 13.2% 10,105 327
Visa Credit Programs US 8.3% 8.3% 2,250 $33 Rest of World 21.2% 17.0% 2,519 35 Visa Inc. 14.3% 12.5% 4,770 67
Visa Debit Programs US 12.8% 12.8% 4,653 $65 Rest of World 39.1% 28.9% 682 195 Visa Inc. 15.6% 14.7% 5,336 260
For the 3 Months Ended June 30, 2007 Cash Growth Growth Trans- (Nominal (Constant actions Accounts Cards USD) USD) (millions) (millions) (millions) ------- ------- -------- -------- -------- All Visa Credit & Debit Asia Pacific 21.9% 16.1% 373 336 412 Canada 24.5% 18.0% 9 22 30 CEMEA 39.9% 38.1% 508 121 124 LAC 28.6% 15.3% 669 257 281 US 6.3% 6.3% 721 418 616 Visa Inc. 21.8% 17.2% 2,280 1,154 1,464
Visa Credit Programs US -4.3% -4.3% 32 245 345 Rest of World 12.6% 11.1% 120 339 394 Visa Inc. 3.7% 3.1% 152 584 739
Visa Debit Programs US 12.5% 12.5% 689 173 270 Rest of World 33.5% 24.4% 1,439 397 454 Visa Inc. 27.5% 21.3% 2,128 570 725
For the 3 Months Ended March 31, 2007
Total Growth Growth Payments Volume (Nominal (Constant Volume ($ billions) USD) USD) ($ billions) ------------ ------- -------- ------------ All Visa Credit & Debit Asia Pacific $189 23.1% 18.8% $126 Canada 36 10.3% 11.8% 31 CEMEA 81 44.8% 43.8% 12 LAC 104 19.4% 19.6% 31 US 440 9.2% 9.2% 347 Visa Inc. 850 16.1% 15.4% 548
Visa Credit Programs US $214 7.8% 7.8% $181 Rest of World 208 17.1% 15.4% 177 Visa Inc. 423 12.2% 11.6% 357
Visa Debit Programs US $226 10.4% 10.4% $166 Rest of World 201 33.4% 30.4% 24 Visa Inc. 427 20.1% 19.4% 190
For the 3 Months Ended March 31, 2007 Payments Growth Growth Trans- Cash Nominal (Constant actions Volume USD) USD) (millions) ($ billions) ------- ------- --------- ------------ All Visa Credit & Debit Asia Pacific 20.8% 17.0% 1,599 $63 Canada 9.2% 10.7% 309 4 CEMEA 35.3% 40.6% 183 68 LAC 25.9% 25.4% 904 72 US 9.0% 9.0% 6,261 94 Visa Inc. 12.9% 12.4% 9,256 302
Visa Credit Programs US 8.0% 8.0% 2,021 $33 Rest of World 18.5% 16.6% 2,343 32 Visa Inc. 13.0% 12.3% 4,364 65
Visa Debit Programs US 10.1% 10.1% 4,240 $60 Rest of World 35.3% 32.5% 652 176 Visa Inc. 12.8% 12.7% 4,892 237
For the 3 Months Ended March 31, 2007 Cash Growth Growth Trans- (Nominal (Constant actions Accounts Cards USD) USD) (millions) (millions) (millions) ------- ------- -------- -------- -------- All Visa Credit & Debit Asia Pacific 28.1% 22.6% 382 321 397 Canada 19.1% 20.7% 9 22 30 CEMEA 46.6% 44.4% 477 117 122 LAC 16.8% 17.2% 658 251 271 US 9.8% 9.8% 698 412 607 Visa Inc. 22.3% 21.1% 2,224 1,123 1,426
Visa Credit Programs US 7.0% 7.0% 30 243 341 Rest of World 9.8% 9.3% 105 322 375 Visa Inc. 8.3% 8.1% 135 565 716
Visa Debit Programs US 11.4% 11.4% 668 169 266 Rest of World 33.1% 30.1% 1,421 389 444 Visa Inc. 26.8% 25.0% 2,089 558 710
For the 3 Months Ended December 31, 2006
Total Growth Growth Payments Volume (Nominal (Constant Volume ($ billions) USD) USD) ($ billions) ------------ ------- -------- ------------ All Visa Credit & Debit Asia Pacific $188 21.9% 15.9% $127 Canada 40 11.1% 11.3% 35 CEMEA 80 43.0% 40.4% 12 LAC 109 22.2% 17.5% 33 US 462 8.4% 8.4% 367 Visa Inc. 878 15.4% 13.6% 574
Visa Credit Programs US $232 7.7% 7.7% $199 Rest of World 214 17.9% 14.1% 182 Visa Inc. 447 12.4% 10.8% 381
Visa Debit Programs US $230 9.0% 9.0% $169 Rest of World 202 32.0% 26.2% 25 Visa Inc. 431 18.7% 16.7% 194
For the 3 Months Ended December 31, 2006 Payments Growth Growth Trans- Cash Nominal (Constant actions Volume USD) USD) (millions) ($ billions) ------- ------- --------- ------------ All Visa Credit & Debit Asia Pacific 21.1% 15.8% 1,600 $61 Canada 10.1% 10.3% 344 4 CEMEA 32.2% 33.9% 175 68 LAC 30.4% 25.3% 911 77 US 8.1% 8.1% 6,557 95 Visa Inc. 12.4% 11.3% 9,586 304
Visa Credit Programs US 7.7% 7.7% 2,281 $34 Rest of World 19.2% 15.4% 2,371 32 Visa Inc. 12.9% 11.4% 4,651 66
Visa Debit Programs US 8.6% 8.6% 4,276 $61 Rest of World 36.0% 30.5% 658 177 Visa Inc. 11.5% 11.2% 4,934 238
For the 3 Months Ended December 31, 2006 Cash Growth Growth Trans- (Nominal (Constant actions Accounts Cards USD) USD) (millions) (millions) (millions) ------- ------- -------- -------- -------- All Visa Credit & Debit Asia Pacific 23.7% 16.0% 381 308 381 Canada 19.8% 20.0% 9 22 30 CEMEA 45.1% 41.7% 470 104 112 LAC 19.0% 14.5% 687 241 262 US 9.2% 9.2% 698 402 600 Visa Inc. 21.4% 18.2% 2,245 1,077 1,384
Visa Credit Programs US 7.7% 7.7% 32 240 345 Rest of World 11.4% 7.2% 107 314 363 Visa Inc. 9.5% 7.5% 140 554 709
Visa Debit Programs US 10.0% 10.0% 666 162 255 Rest of World 31.4% 25.6% 1,440 361 421 Visa Inc. 25.2% 21.4% 2,105 523 676
For the 12 Months Ended September 30, 2008
Total Growth Growth Payments Volume (Nominal (Constant Volume ($ billions) USD) USD) ($ billions) ------------ ------- -------- ------------ All Visa Credit & Debit Asia Pacific $985 24.3% 21.4% $642 Canada 199 18.9% 10.8% 176 CEMEA 504 43.5% 40.4% 75 LAC 602 34.3% 23.2% 193 US 2,053 9.5% 9.5% 1,645 Visa Inc. 4,343 19.5% 16.9% 2,732
Visa Credit Programs US $975 5.8% 5.8% $839 Rest of World 1,098 22.8% 18.5% 937 Visa Inc. 2,073 14.2% 12.2% 1,776
Visa Debit Programs US $1,077 13.0% 13.0% $807 Rest of World 1,192 37.8% 30.6% 149 Visa Inc. 2,269 24.8% 21.7% 956
For the 12 Months Ended September 30, 2008 Payments Growth Growth Trans- Cash Nominal (Constant actions Volume USD) USD) (millions) ($ billions) ------- ------- --------- ------------ All Visa Credit & Debit Asia Pacific 22.2% 19.3% 8,021 $343 Canada 19.1% 10.9% 1,497 23 CEMEA 40.1% 39.9% 1,006 429 LAC 40.8% 29.1% 4,651 409 US 10.6% 10.6% 29,830 407 Visa Inc. 16.2% 14.4% 45,005 1,610
Visa Credit Programs US 6.5% 6.5% 9,323 $136 Rest of World 23.6% 18.8% 11,744 160 Visa Inc. 14.9% 12.7% 21,067 297
Visa Debit Programs US 15.3% 15.3% 20,507 $271 Rest of World 41.1% 33.6% 3,430 1,043 Visa Inc. 18.7% 17.8% 23,938 1,313
For the 12 Months Ended September 30, 2008 Cash Growth Growth Trans- (Nominal (Constant actions Accounts Cards USD) USD) (millions) (millions) (millions) ------- ------- -------- -------- -------- All Visa Credit & Debit Asia Pacific 28.6% 25.6% 1,934 400 480 Canada 17.6% 9.6% 37 24 32 CEMEA 44.1% 40.5% 2,485 169 176 LAC 31.5% 20.5% 3,028 301 334 US 5.1% 5.1% 2,886 478 654 Visa Inc. 25.6% 21.5% 10,369 1,371 1,676
Visa Credit Programs US 1.7% 1.7% 122 266 339 Rest of World 18.6% 16.8% 569 410 473 Visa Inc. 10.2% 9.3% 691 675 812
Visa Debit Programs US 6.9% 6.9% 2,764 212 314 Rest of World 37.4% 30.2% 6,914 484 549 Visa Inc. 29.8% 24.6% 9,678 695 864
For the 12 Months Ended September 30, 2007
Total Growth Growth Payments Volume (Nominal (Constant Volume ($ billions) USD) USD) ($ billions) ------------ ------- -------- ------------ All Visa Credit & Debit Asia Pacific $793 22.8% 18.0% $526 Canada 167 15.9% 12.0% 148 CEMEA 351 42.3% 39.9% 54 LAC 448 25.2% 18.7% 137 US 1,875 9.2% 9.2% 1,487 Visa Inc. 3,634 16.8% 14.8% 2,352
Visa Credit Programs US $922 7.1% 7.1% $788 Rest of World 894 19.4% 15.7% 759 Visa Inc. 1,816 12.9% 11.3% 1,546
Visa Debit Programs US $953 11.2% 11.2% $700 Rest of World 865 34.0% 27.5% 106 Visa Inc. 1,818 21.0% 18.6% 806
For the 12 Months Ended September 30, 2007 Payments Growth Growth Trans- Cash Nominal (Constant actions Volume USD) USD) (millions) ($ billions) ------- ------- --------- ------------ All Visa Credit & Debit Asia Pacific 21.0% 16.8% 6,702 $267 Canada 14.8% 11.0% 1,366 19 CEMEA 34.8% 35.6% 766 298 LAC 34.3% 27.0% 3,763 311 US 9.6% 9.6% 26,757 387 Visa Inc. 14.0% 12.7% 39,354 1,282
Visa Credit Programs US 8.1% 8.1% 8,866 $134 Rest of World 20.7% 16.7% 9,887 135 Visa Inc. 14.0% 12.3% 18,753 270
Visa Debit Programs US 11.2% 11.2% 17,891 $253 Rest of World 37.6% 30.7% 2,711 759 Visa Inc. 14.1% 13.6% 20,601 1,012
For the 12 Months Ended September 30, 2007 Cash Growth Growth Trans- (Nominal (Constant actions Accounts Cards USD) USD) (millions) (millions) (millions) ------- ------- -------- -------- -------- All Visa Credit & Debit Asia Pacific 26.7% 20.3% 1,553 348 427 Canada 24.5% 20.3% 36 23 31 CEMEA 43.7% 40.7% 2,000 125 136 LAC 21.6% 15.4% 2,705 267 289 US 7.6% 7.6% 2,846 440 642 Visa Inc. 22.2% 18.9% 9,141 1,203 1,526
Visa Credit Programs US 1.6% 1.6% 128 253 358 Rest of World 12.6% 10.3% 461 353 410 Visa Inc. 6.8% 5.8% 589 607 769
Visa Debit Programs US 11.2% 11.2% 2,718 187 284 Rest of World 33.5% 27.0% 5,834 409 473 Visa Inc. 27.1% 22.8% 8,552 596 757
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
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.
2. Processed Transactions
The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa's networks.
Processed Transactions Year-over-Year Period (millions) Growth ---------------------------------------------------------------- 3 Months Ended -------------- 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% Jun 30, 2007 8,411 13% Mar 31, 2007 7,645 12%
12 Months Ended --------------- Dec 31, 2008 37,659 11% Dec 31, 2007 33,796 13% Dec 31, 2006 30,008 NA
SOURCE Visa Inc.
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