Visa’s net revenue rose by 13% in the first quarter to $10.9bn, ignoring currency impacts. This was 2% ahead of consensus, with all revenue lines coming in better that expected except for cross-border transactions.
Underlying net profit came in at $6.1bn, with growth of 12% lagging net revenue due to higher costs and income taxes.
Free cash flow was up 27% to $6.4bn, helped by profit growth and the timing of settlement payments. Net debt came in at $4.8bn.
Visa spent $5.0 on payouts to shareholders over the quarter, mainly on share buybacks.
Full-year guidance of low-double digit growth in net revenue and operating expenses was unchanged. However, expenses growth in the current quarter is expected to hit the mid-teens.
The shares closed down 3% on the day that followed the announcement.
*We have changed our treatment of Visa’s client incentives with current and non-current obligations now excluded from our net debt calculation.
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