Visa’s fourth quarter net income jumped 24% year-on-year (YOY) to $1.9 billion. Excluding the Visa Europe put option, 4Q/15 profits rose 7% to $1.7 billion.
Global purchase volume rose 9.0% (FX) to $1.89 trillion and total processed transactions, which represent transactions processed by VisaNet, for the third quarter, were 19.0 billion, an 8% increase over the prior year.
U.S. Gross Dollar Volume (GDV) for 4Q/15 (credit + debit) increased 8.9% YOY to $841 billion, while Purchase Dollar Volume (PDV) rose 9.5% YOY to $713 billion for the third quarter.
The number of U.S. Purchase Transactions (PTX) for credit + debit jumped 11.4% to 14.0 billion for the fourth quarter.
At the end of 3Q/15 Visa had 630 million U.S. accounts representing 802 million credit and debit cards. (Visa reports accounts and cards on a one quarter delay).
For U.S. Visa credit cards, PDV increased 9.2% for 4Q/15 to $345 billion and the number of cards-in-force (CIF) declined slightly to 329 million at end of 3Q/15
For U.S. Visa debit cards, PDV rose 9.8% YOY for 4Q/15 to $355 billion and the number of CIF increased to 473 million at end of 3Q/15.
VISA PROFITS HISTORICAL
4Q/14: $1569 million
1Q/15: $1550 million
2Q/15: $1697 million
3Q/15: $1512 million
4Q/15: $1941 million
Visa noted net operating revenue in the fiscal first quarter of 2016 was $3.6 billion, an increase of 5% nominally or 8% on a constant dollar basis over the prior year, driven by growth in service revenues, data processing revenues and international transaction revenues.
Currency rate shifts versus the prior year negatively impacted reported net operating revenue growth by approximately 3 percentage points.
Cross-border volume growth, on a constant dollar basis, was 4% for the three months ended December 31, 2015.
Fiscal first quarter 2016 service revenues were $1.6 billion, an increase of 7% over 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 7% over the prior year to $1.5 billion. International transaction revenues grew 6% over the prior year to $1.0 billion. Other revenues were $198 million, a decrease of 3% over the prior year. Client incentives, which are a contra revenue item, were $788 million and represent 18.1% of gross revenues.
Total operating expenses were $1.2 billion for the quarter, a 2% increase over the prior year, as the Company took the necessary steps to prioritize cost controls given an increasingly challenging macro- economic environment.
The Company recognized interest expense of $24 million for the quarter ended December 31, 2015 as a result of the issuance of approximately $16.0 billion of fixed-rate senior notes.
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