Visa profit rises 71 percent in fiscal Q2 - San Francisco Business Times:

ibitasony.wordpress.com
The San Francisco company posted net incomeof $536 million, or 71 centsz per share, in the quarterf ended March 31, up from $314 million, or 39 centa per share, in the year-agko period. Excluding special items such as Visa’xs (NYSE: V) litigation reserve a year ago, the company’w profit rose to 73 cents per sharre from52 cents. Revenue reached $1.6 billion, up 13 perceny from a year ago. The results once agaij reflect the value of beinga toll-gatw keeper collecting a fee from thosd using the company’s paymenr network rather than taking on the risk and costds that lenders incur in issuing credit.
But Visa still felt the effect of the consumerspending “Looking at Visa’s traditional domestic volumes, growth was slightlyt negative, reflecting the general downturn in consumer said Red Gillen, senior analyst with a Boston research firm. “As such, today’sa announcement would have been a whole lot worsee had Visa not been able to lean on its international model and newbusiness lines. “Visa’s push into the debit card processiny space has been anothertbright spot, and will likely serve as encouragemenyt for the company to continue pursuing traditional bank customers,” Gillen said.
“Visa has also been able to cut its notably personnel,” Gillen said. “Visa’s operations are and thus the potential awaitw for higher profits once consumer spending eventuallyturns around.” The company also expressed confidence in meetinyg its prior guidance for the fiscalp year. “The resiliency in our businessd reflects the strengthof Visa’s debit and prepaid products worldwide,” said Joseph Saunders, Visa’s chairman and CEO.