The company reported a 6% decrease in net revenue for the first quarter of fiscal 2021, driven by a decline in cross-border volume
Payment technology firm Visa has reported a net income of $3.1bn, or $1.42 per share, for the first quarter ended 31 December 2021, a 4% decrease compared to $3.3bn, or $1.46 per share, for the same period in 2020.
The digital payments firm generated net revenue of $5.7bn for the first quarter of fiscal 2021, a 6% decrease compared to $6.1bn for the corresponding quarter in 2020.
Its payments volume for the three months ended 30 September 2020 increased by 4% and for the three months ended 31 December 2020 increased by 5%, compared to respective periods in the previous year.
Visa attributed the decline in the first-quarter revenues to decrease in cross-border volume and was partially mitigated by its growth in payments volume and processed transactions.
Visa chairman and chief executive officer Alfred Kelly, Jr. said: “The fourth quarter capped a strong fiscal 2019 with net revenue and adjusted EPS growth of 13% and 21%, respectively.
“During the year, we extended and expanded partnerships with a significant number of our largest clients globally while also establishing new partnerships with emerging companies across the payments ecosystem.
“These partnerships, combined with four acquisitions and substantial organic investment, greatly expand our reach and capabilities to fuel future growth.”
Visa’s cross-border payments volume for the first quarter of 2021 declined by 21%, while the cross-border transactions, excluding Europe, have declined 33% for the three months ending 31 December 2020.
The company has processed transactions, amounting a total of $39.2bn for the three months ended 31 December 2020, an increase of 4% compared to $37.8bn for the three months ending 31 December 2019.
Visa reported service revenues of $2.7bn for fiscal Q1 2021, a 5% increase compared to the same quarter of the previous year.
The firm reported Data Processing revenues of $3bn for three months ended 31 December 2020, an increase of 6% compared to $2.9bn for the corresponding period of the previous year.
The company reported International transaction revenues of $1.5bn for the three months ended 31 December 2020, a 28% decline compared to $2bn over the same period in the previous year.
Visa reported other revenues of $384m for the three months ended 31 December 2020, a 5% increase compared to three months ended 31 December 2019.