Visa Inc. Posts Strong Fiscal Fourth Quarter and Full-Year 2011 Earnings Results and Increases Existing Share Repurchase Program by $1 Billion

10/26/2011


SAN FRANCISCO, Oct. 26, 2011 /PRNewswire via COMTEX/ --

 

  • GAAP quarterly net income of $880 million or $1.27 per diluted class A common share
  • Adjusted full-year 2011 net income of $3.5 billion or $4.99 per diluted class A common share excluding the revaluation of the Visa Europe put option
  • Full-year 2011 GAAP net income, inclusive of the revaluation of the Company's Visa Europe put option, was $3.6 billion
  • The Company increases its share repurchase program by $1 billion and quarterly dividend payment by 47%

 

 

Visa Inc. (NYSE: V) today announced financial results for the Company's fiscal fourth quarter and full-year 2011. For the fourth quarter ending September 30, 2011, GAAP net income was $880 million, an increase of 14% over the prior year. GAAP diluted class A common stock earnings per share were $1.27 - an increase of 20% over the prior year on a GAAP basis, or an increase of 34% over the prior year on an adjusted basis (excluding the revaluation of the Company's Visa Europe put option). The weighted-average number of diluted class A common shares outstanding was approximately 692 million.

GAAP net operating revenue in the fiscal fourth quarter of 2011 was $2.4 billion, an increase of 13% over the prior year and driven by strong contributions across all revenue categories. Currency fluctuations contributed 2 percentage points of growth towards quarterly net operating revenues.

On an adjusted basis (excluding the revaluation of the Company's Visa Europe put option), net income for the full-year was $3.5 billion, an increase of 22% over the prior year. On an adjusted basis, diluted class A common stock earnings per share were $4.99, an increase of 28% over the prior year on an adjusted basis.

GAAP net income for the full-year was $3.6 billion, inclusive of the revaluation of the Company's Visa Europe put option. Diluted class A common stock earnings per share were $5.16. The Company's adjusted quarterly and full-year net income per class A common share outstanding are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying financial tables. The weighted-average number of diluted class A common shares outstanding was approximately 707 million.

GAAP net operating revenue for the full-year was $9.2 billion, an increase of 14% over the prior year and driven by double-digit revenue growth contributions from service, data processing and international transaction revenues. Currency fluctuations contributed 2 percentage points of growth towards full-year net operating revenues.

"Visa continues to deliver strong results, with fourth quarter and full year performance reflecting a business that is both resilient and flexible enough to adapt and flourish in a changing business environment," said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc.

"Throughout the quarter and the year, we have been diligent in our efforts to grow our core business, while successfully unlocking new revenue opportunities through strategic investments, both in our core business and into innovations that will ensure our foundation for future growth remains strong. This foundation will allow us to effectively drive transactions, pursue global growth in new markets and provide our clients with innovative ways to provide safe electronic payments to their customers."

Fiscal Fourth Quarter 2011 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2011, on which fiscal fourth quarter service revenue is recognized, was a positive 14% over the prior year at $941 billion.

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2011, was a positive 13% over the prior year at $970 billion.

Cross border volume growth, on a constant dollar basis, was a positive 15% for the three months ended September 30, 2011.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended September 30, 2011, were 13 billion, a positive 9% increase over the prior year.

For the fiscal fourth quarter 2011, service revenues were $1.1 billion, an increase of 21% versus 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 10% over the prior year to $925 million. International transaction revenues, which are driven by cross border payments volume, grew 23% over the prior year to $758 million. Other revenues, which include the Visa Europe licensing fee, were $171 million, a 3% increase over the prior year. Client incentives, which are a contra revenue item, were $576 million and represents 19.5% of gross revenues.

Total operating expenses on a GAAP basis were $1 billion for the quarter, a 2% increase over the prior year and included approximately $30 million in restructuring expenses.

Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $6.9 billion at September 30, 2011.

Visa's GAAP effective tax rate was 35% for the quarter ended September 30, 2011.

Fiscal Full-Year 2011 Financial Highlights:

For the fiscal full-year 2011, service revenues were $4.3 billion, an increase of 22% over the prior year. Data processing revenues rose 11% over the prior year to $3.5 billion. International transaction revenues, which are driven by cross border payments volume, grew 17% over the prior year to $2.7 billion. Other revenues, which include the Visa Europe licensing fee, were $655 million, an 8% decrease over the prior year. Client incentives, which are a contra revenue item, were $1.9 billion and represent 17% of gross revenues.

Total processed transactions, which represent transactions processed by VisaNet for the 12 months ended September 30, 2011, totaled 51 billion, a 12% increase over the prior year.

Total operating expenses on a GAAP basis were $3.7 billion for the full-year, a 7% increase over the prior year.

Visa's GAAP effective tax rate was 36% for the twelve months ended September 30, 2011, excluding the revaluation of the Visa Europe put option.

Notable Events:

During the three months ended September 30, 2011, the Company repurchased approximately 5.2 million class A common shares, at an average price of $80.87 per share, for a total cost of $423 million.

As announced on October 19, 2011, the Board of Directors declared a quarterly dividend in the aggregate amount of $0.22 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on December 6, 2011, to all holders of record of the Company's class A, class B and class C common stock as of November 18, 2011.

Today, the Company announces that its Board of Directors has authorized a $1 billion increase to its previously announced $1 billion share repurchase program. The authorization will be in place through July 20, 2012, and is subject to further change at the discretion of the Board.

Financial Outlook:

Visa Inc. affirms its financial outlook for the following metrics through 2012:

 

  • Annual net revenue growth: high single to low double digit range; and
  • Adjusted annual diluted class A common stock earnings per share growth: mid to high teens range.

 

Visa Inc. provides its financial outlook for the following metrics for 2012:

 

  • Client incentives as a percent of gross revenues: 17% to 18% range;
  • Marketing expenses: Under $1 billion;
  • Annual operating margin: About 60%;
  • Adjusted tax rate: 33% to 34% range*;
  • Capital expenditures $350 million to $400 million range; and
  • Annual free cash flow: Above $4 billion.

 

* Financial Outlook excludes impact of possible non-cash revaluation of deferred tax liabilities, which could decrease the GAAP tax rate to 30 to 31%. These deferred tax liabilities are primarily associated with indefinite-lived intangible assets recorded as part of Visa's October 2007 reorganization.

Fiscal Fourth Quarter and Full-Year 2011 Earnings Results Conference Call Details:

Visa's executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) today to discuss the financial results and business highlights.

All interested parties are invited to listen to the live webcast at https://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 https://investor.visa.com.

About Visa

Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks--VisaNet--that is capable of handling more than 20,000 transaction messages a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com.

Forward Looking Statements:

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by the terms "believe," "continue," "could," "estimate," "expect," "intend," "may," "potential," "project," "should," "will," and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make about our earnings per share, cash flow, revenue, incentive payments, expenses, operating margin, tax rate and capital expenditures and the growth of those items.

By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are neither statements of historical fact nor guarantees of future performance and (iii) are subject to risks, uncertainties, assumptions and changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements because of a variety of factors, including the following:

 

  • the impact of new laws, regulations and marketplace barriers, particularly the rules recently promulgated under the U.S. Wall Street Reform and Consumer Protection Act, including:
    • rules capping debit interchange rates;
    • rules expanding issuers' and retailers' choice among debit payment networks;
    • the spread of regulation of debit payments to credit and other product categories;
    • the spread of U.S. regulations to other countries; and
    • rules about consumer privacy and data use and security
  • developments in current or future disputes and our ability to absorb their impact, including interchange and tax;
  • macroeconomic factors, such as:
    • global economic, political, health and other conditions;
    • cross-border activity and currency exchange rates; and
    • material changes in our clients' performance compared to our estimates;
  • industry developments, such as:
    • competitive pressure, particularly on client pricing;
    • rapid technological developments;
    • bank and merchant consolidation and their increased focus on payment card costs;
    • disintermediation from the payments value stream through new entrants, government actions or bilateral agreements; and
    • adverse changes in our relationships and reputation;
    • concentration of revenue;
  • system developments, such as:
    • disruption of our transaction processing systems or the inability to process transactions efficiently;
    • our clients' failure to fund settlement obligations we have guaranteed;
    • disruption of our transaction processing systems or the inability to process transactions efficiently;
    • account data breaches or increased fraudulent or other illegal activities involving our cards;
    • issues arising at Visa Europe, including failure to maintain interoperability between our systems;
  • costs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding stock;
  • loss of organizational effectiveness or key employees;
  • failure to integrate successfully recent acquisitions or new technologies; and
  • changes in accounting principles or treatments; and

 

the other factors discussed under the heading "Risk Factors" herein. You should not place undue reliance on such statements. Unless required to do so by law, we do not intend to update or revise any forward-looking statement because of new information or future developments or otherwise.

Contacts: Investor Relations: Jack Carsky or Victoria Hyde-Dunn, 415-932-2213, ir@visa.com Media Relations: Will Valentine, 415-932-2564, globalmedia@visa.com

VISA INC.

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(UNAUDITED)

 
                 
                 
 

Three Months Ended
September 30,

 

Twelve Months Ended
September 30,

 
 

2011

 

2010

 

2011

 

2010

 
 

(in millions, except per share data)

 

Operating Revenues

               

Service revenues

$ 1,105

 

$ 912

 

$ 4,261

 

$ 3,497

 

Data processing revenues

925

 

840

 

3,478

 

3,125

 

International transaction revenues

758

 

619

 

2,674

 

2,290

 

Other revenues

171

 

167

 

655

 

713

 

Client incentives

(576)

 

(421)

 

(1,880)

 

(1,560)

 

Total operating revenues

2,383

 

2,117

 

9,188

 

8,065

 
                 

Operating Expenses

               

Personnel

388

 

353

 

1,459

 

1,222

 

Network and processing

106

 

119

 

357

 

425

 

Marketing

239

 

233

 

870

 

964

 

Professional fees

115

 

108

 

337

 

286

 

Depreciation and amortization

77

 

78

 

288

 

265

 

General and administrative

95

 

117

 

414

 

359

 

Litigation provision

1

 

(4)

 

7

 

(45)

 

Total operating expenses

1,021

 

1,004

 

3,732

 

3,476

 
                 

Operating income

1,362

 

1,113

 

5,456

 

4,589

 
                 

Other Income (Expense)

               

Interest expense

(13)

 

(15)

 

(32)

 

(72)

 

Investment income, net

1

 

20

 

108

 

49

 

Other

4

 

77

 

124

 

72

 

Total other (expense) income

(8)

 

82

 

200

 

49

 
                 

Income before income taxes

1,354

 

1,195

 

5,656

 

4,638

 

Income tax provision

476

 

422

 

2,010

 

1,674

 
                 

Net income including non-controlling interest

878

-

773

 

3,646

 

2,964

 

Loss attributable to non-controlling interest

2

 

1

 

4

 

2

 
                 

Net income attributable to Visa Inc.

$ 880

 

$ 774

 

$ 3,650

 

$ 2,966

 
                 

Basic earnings per share

               

Class A common stock

$ 1.28

 

$ 1.06

 

$ 5.18

 

$ 4.03

 

Class B common stock

$ 0.62

 

$ 0.59

 

$ 2.59

 

$ 2.31

 

Class C common stock

$ 1.28

 

$ 1.06

 

$ 5.18

 

$ 4.03

 
                 

Basic weighted-average shares outstanding

               

Class A common stock

518

 

492

 

509

 

482

 

Class B common stock

245

 

245

 

245

 

245

 

Class C common stock

49

 

98

 

70

 

112

 
                 

Diluted earnings per share

               

Class A common stock

$ 1.27

 

$ 1.06

 

$ 5.16

 

$ 4.01

 

Class B common stock

$ 0.62

 

$ 0.59

 

$ 2.58

 

$ 2.30

 

Class C common stock

$ 1.27

 

$ 1.06

 

$ 5.16

 

$ 4.01

 
                 

Diluted weighted-average shares outstanding

               

Class A common stock

692

 

731

 

707

 

739

 

Class B common stock

245

 

245

 

245

 

245

 

Class C common stock

49

 

98

 

70

 

112

 
               

VISA INC.

 

CONSOLIDATED BALANCE SHEETS

 

(UNAUDITED)

 
         
 

September 30,
2011

 

September 30,
2010

 
 

(in millions, except par value data)

 

Assets

       

Cash and cash equivalents

$ 2,127

 

$ 3,867

 

Restricted cash - litigation escrow

2,857

 

1,866

 

Investment securities

       

Trading

57

 

60

 

Available-for-sale

1,214

 

124

 

Settlement receivable

412

 

402

 

Accounts receivable

560

 

476

 

Customer collateral

931

 

899

 

Current portion of client incentives

278

 

175

 

Current portion of deferred tax assets

489

 

623

 

Prepaid expenses and other current assets

265

 

242

 
         

Total current assets

9,190

 

8,734

 
         

Restricted cash - litigation escrow

-

 

70

 

Investment securities, available-for-sale

711

 

24

 

Client incentives

85

 

101

 

Property, equipment and technology, net

1,541

 

1,357

 

Other assets

129

 

197

 

Intangible assets, net

11,436

 

11,478

 

Goodwill

11,668

 

11,447

 
         

Total assets

$ 34,760

 

$ 33,408

 
         
         

Liabilities

       

Accounts payable

$ 169

 

$ 137

 

Settlement payable

449

 

406

 

Customer collateral

931

 

899

 

Accrued compensation and benefits

387

 

370

 

Client incentives

528

 

418

 

Accrued liabilities

562

 

625

 

Current portion of long-term debt

-

 

12

 

Current portion of accrued litigation

425

 

631

 
         

Total current liabilities

3,451

 

3,498

 
         

Long-term debt

-

 

32

 

Accrued litigation

-

 

66

 

Deferred tax liabilities

4,205

 

4,181

 

Other liabilities

667

 

617

 
         

Total liabilities

8,323

 

8,394

 
         
         

Equity

       

Preferred stock, $0.0001 par value, 25 shares authorized and none issued

$ -

 

$ -

 

Class A common stock, $0.0001 par value, 2,001, 622 shares authorized, 520 and 493 shares issued and
outstanding at September 30, 2011, and September 30, 2010, respectively

-

 

-

 

Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at
September 30, 2011 and September 30, 2010

-

 

-

 

Class C common stock, $0.0001 par value, 1,097 shares authorized, 47 and 97 shares issued and
outstanding at September 30, 2011, and September 30, 2010, respectively

-

 

-

 

Additional paid-in capital

19,907

 

20,794

 

Accumulated income

6,706

 

4,368

 

Accumulated other comprehensive income (loss), net

       

Investment securities, available-for-sale

-

 

3

 

Defined benefit pension and other postretirement plans

(186)

 

(115)

 

Derivative instruments classified as cash flow hedges

18

 

(40)

 

Foreign currency translation adjustments

(8)

 

1

 

Total accumulated other comprehensive loss, net

(176)

 

(151)

 
         

Total Visa Inc. stockholders' equity

26,437

 

25,011

 
         

Non-controlling interest

-

 

3

 

Total equity

26,437

 

25,014

 
         
         

Total liabilities and equity

$ 34,760

 

$ 33,408

 
       

VISA INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(UNAUDITED)

 
 

For the Years Ended September 30,

 
 

2011

   

2010

   

2009

 
 

(in millions)

 

Operating Activities

               
                 

Net income including non-controlling interest

$ 3,646

 

$

2,964

   

2,352

 

Adjustments to reconcile net income including non-controlling interest to net cash provided by (used in) operating
activities:

               

Amortization of client incentives

1,880

   

1,560

   

1,234

 

Fair value adjustment for the Visa Europe put option

(122)

   

(79)

   

-

 

Share-based compensation

154

   

131

   

115

 

Excess tax benefit for share-based compensation

(18)

   

(14)

   

(7)

 

Depreciation and amortization of property, equipment and technology and intangible assets

288

   

265

   

226

 

Litigation provision and accretion

18

   

(18)

   

95

 

Net recognized (gain) loss on investment securities, including other-than-temporary impairment

(3)

   

(21)

   

5

 

Net recognized gain on other investments, including other-than-temporary impairment

(92)

   

(3)

   

(462)

 

Deferred income taxes

164

   

249

   

297

 

Other

(9)

   

(8)

   

(35)

 

Change in operating assets and liabilities:

               

Trading securities

3

   

(1)

   

34

 

Settlement receivable

(4)

   

203

   

526

 

Accounts receivable

(79)

   

(7)

   

(102)

 

Client incentives

(1,857)

   

(1,386)

   

(1,136)

 

Other assets

(1)

   

(41)

   

(109)

 

Accounts payable

29

   

(21)

   

(3)

 

Settlement payable

36

   

(245)

   

(461)

 

Accrued compensation and benefits

16

   

(26)

   

(23)

 

Accrued and other liabilities

113

   

191

   

213

 

Accrued litigation

(290)

   

(1,002)

   

(2,201)

 
                 

Net cash provided by operating activities

3,872

   

2,691

   

558

 
                 

Investing Activities

               

Acquisitions, net of cash received of $22, $147 and $0, respectively

(268)

   

(1,805)

   

-

 

Purchases of property, equipment and technology

(353)

   

(241)

   

(306)

 

Proceeds from disposal of property, equipment and technology

-

   

3

   

-

 

Distributions from money market investment

-

   

89

   

884

 

Investment securities, available-for-sale:

               

Purchases

(1,910)

   

(11)

   

(7)

 

Proceeds from sales and maturities

129

   

67

   

297

 

Purchases of / contributions to other investments

(13)

   

(17)

   

(48)

 

Proceeds / distributions from other investments

116

   

11

   

1,010

 

Net cash (used in) provided by investing activities

(2,299)

   

(1,904)

   

1,830

 
                 

Financing Activities

               

Repurchase of class A common stock

(2,024)

   

(1,000)

   

-

 

Dividends paid

(423)

   

(368)

   

(318)

 

Deposits into litigation escrow account - retrospective responsibility plan

(1,200)

   

(500)

   

(1,800)

 

Payment from litigation escrow account - retrospective responsibility plan

280

   

280

   

2,028

 

Cash proceeds from exercise of stock options

99

   

56

   

32

 

Excess tax benefit for share-based compensation

18

   

14

   

7

 

Principal payments on debt

(44)

   

(12)

   

(50)

 

Principal payments on capital lease obligations

(10)

   

(12)

   

(4)

 

Payment for redemption of stock

-

   

-

   

(2,646)

 

Net cash used in financing activities

(3,304)

   

(1,542)

   

(2,751)

 

Effect of exchange rate changes on cash and cash equivalents

(9)

   

5

   

1

 

Decrease in cash and cash equivalents

(1,740)

   

(750)

   

(362)

 

Cash and cash equivalents at beginning of year

3,867

   

4,617

   

4,979

 

Cash and cash equivalents at end of year

$ 2,127

   

$ 3,867

   

$ 4,617

 
                 
                 

Supplemental Disclosure of Cash Flow Information

               
                 

Income taxes paid, net of refunds

$ 1,731

   

$ 1,291

   

$ 1,172

 

Amounts included in accounts payable and accrued and other liabilities related to purchases of
property, equipment and technology

$ 36

   

$ 31

   

$ 18

 

Interest payments on debt

$ 3

   

$ 4

   

$ 7

 

Assets acquired in joint venture with note payable and equity interest issued

$ -

   

$ -

   

$ 22

 
               

VISA INC.

 

FISCAL 2010 AND 2011 QUARTERLY RESULTS OF OPERATIONS

 

US$ in millions

 

(UNAUDITED)

 
                     
 

Fiscal 2010
Quarter Ended

 

Fiscal 2011 Quarter Ended

 
 

September 30,
2010

 

December 31,
2010

 

March 31,
2011

 

June 30,
2011

 

September 30,
2011

 
 

(in millions)

 

Operating Revenues

                   

Service revenues

$ 912

 

$ 1,008

 

$ 1,093

 

$ 1,055

 

$ 1,105

 

Data processing revenues (1)

840

 

844

 

823

 

886

 

925

 

International transaction revenues

619

 

630

 

624

 

662

 

758

 

Other revenues (2)

167

 

161

 

156

 

167

 

171

 

Client incentives

(421)

 

(405)

 

(451)

 

(448)

 

(576)

 

Total operating revenues

2,117

 

2,238

 

2,245

 

2,322

 

2,383

 
                     

Operating Expenses

                   

Personnel

353

 

357

 

351

 

363

 

388

 

Network and processing (1)

119

 

80

 

80

 

91

 

106

 

Marketing (2)

233

 

197

 

183

 

251

 

239

 

Professional fees

108

 

61

 

77

 

84

 

115

 

Depreciation and amortization

78

 

67

 

70

 

74

 

77

 

General and administrative

117

 

110

 

95

 

114

 

95

 

Litigation provision

(4)

 

-

 

6

 

-

 

1

 

Total operating expenses

1,004

 

872

 

862

 

977

 

1,021

 
                     

Operating income (1) (2)

1,113

 

1,366

-

1,383

 

1,345

 

1,362

 
                     

Other Income (Expense)

                   

Interest (expense) income

(15)

 

4

 

(12)

 

(11)

 

(13)

 

Investment income, net

20

 

10

 

9

 

88

 

1

 

Other

77

 

2

 

(3)

 

121

 

4

 

Total other income (expense)

82

 

16

 

(6)

 

198

 

(8)

 
                     

Income before income taxes

1,195

 

1,382

 

1,377

 

1,543

 

1,354

 

Income tax provision

422

 

498

 

497

 

539

 

476

 

Net income including non-controlling interest

773

 

884

 

880

 

1004

 

878

 

Loss attributable to non-controlling interest

1

 

-

 

1

 

1

 

2

 

Net income attributable to Visa Inc. (1) (2)

$ 774

 

$ 884

 

$ 881

 

$ 1,005

 

$ 880

 
                     
                     

(1) As previously announced, beginning in the first quarter of fiscal 2011, the Company changed its presentation for non-Visa transactions pass-through revenues and expenses from a gross reporting to a net reporting basis. Previously, pass-through revenues were recorded in data processing and related expenses were recorded in network and processing. This change in presentation does not impact operating income or net income attributable to Visa Inc., as revenue and expense amounts completely offset. On a quarterly basis, related fiscal 2010 revenues and expenses were $38 million in Q4. This amount did not recur in fiscal 2011 as a result of this change in presentation.

 

(2) As previously announced, as a result of certain contractual changes relating to our Visa Extras rewards platform, certain fiscal 2010 revenues recorded in other revenues, and expenses recorded in marketing, did not recur in fiscal 2011. These changes do not impact operating income or net income attributable to Visa Inc., as revenue and expense amounts completely offset. On a quarterly basis, related fiscal 2010 revenues and expenses were $7 million in Q4.

 
                   

Adjusted Net Income and Earnings Per Share

 

US$ in millions, except per share data

 

Management believes the presentation of adjusted net income and diluted earnings per share provides a clearer understanding of our operating performance for the periods. The revaluation of the Visa Europe put option during the third fiscal quarter resulted in non-cash, non-operating income during fiscal 2011. The reduction in the fair value of the put option was primarily the result of declines in our estimated long-term price-to-earnings ratio and does not reflect any change in the likelihood that Visa Europe will exercise its option. Management therefore believes that the resulting non-operating income is not indicative of Visa's performance in the current or future periods

 
     
 

Fiscal Year 2011

 

Net income attributable to Visa Inc. (as reported)

$ 3,650

 

Revaluation of Visa Europe Put option (1)

(122)

 
     

Adjusted net income attributable to Visa Inc.

$ 3,528

 
     

Weighted average number of diluted shares outstanding (as reported)

707

 
     

Adjusted diluted earnings per share

$ 4.99

 
     

Diluted earnings per share (as reported)

$ 5.16

 
     

Impact of revaluation of Visa Europe put option

$ 0.17

 
     

(1) Non-cash, non-operating income resulting from the revaluation of this financial instrument is not subject to tax.

 
   

Operational Performance Data

 

The tables below provide information regarding the available operational results for the 3 months ended September 30, 2011, as well as the prior four quarterly reporting periods and the 12 months ended September 30, 2011 and 2010, for cards carrying the Visa, Visa Electron and Interlink brands. Also included is a table with information on the number of billable transactions processed on Visa Inc.'s CyberSource network.

 

1. Branded Volume and Transactions

 

The tables present total volume, payments volume, and cash volume, and 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 years are provided for volume-based data.

 
       

For the 3 Months Ended September 30, 2011

           
 

Total
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Transactions
(millions)

Cash
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Cash
Transactions
(millions)

     
                             

All Visa Credit & Debit

                           

Asia Pacific

$400

22.6%

13.3%

$271

27.6%

16.8%

2,866

$129

13.2%

6.7%

624

     

Canada

61

14.3%

7.3%

55

14.2%

7.1%

488

5

15.8%

8.7%

10

     

CEMEA

213

30.0%

27.5%

37

40.1%

37.3%

565

175

28.1%

25.6%

999

     

LAC

250

22.6%

16.9%

90

30.7%

24.5%

1,917

160

18.5%

13.0%

929

     

US

626

9.0%

9.0%

516

9.0%

9.0%

10,476

109

8.8%

8.8%

905

     

Visa Inc.

1,549

17.3%

13.6%

970

16.9%

13.2%

16,313

579

17.9%

14.1%

3,467

     
                             

Visa Credit Programs

                           

US

$241

11.0%

11.0%

$228

10.3%

10.3%

2,662

$13

26.4%

26.4%

18

     

Rest of World

420

24.1%

15.3%

369

24.8%

15.7%

4,210

51

19.6%

13.0%

181

     

Visa Inc.

661

19.0%

13.7%

597

18.8%

13.5%

6,872

64

20.9%

15.5%

199

     
                             

Visa Debit Programs

                           

US

$384

7.8%

7.8%

$288

8.1%

8.1%

7,814

$96

6.9%

6.9%

887

     

Rest of World

503

23.2%

18.2%

85

39.5%

32.1%

1,627

418

20.4%

15.7%

2,381

     

Visa Inc.

888

16.0%

13.4%

373

13.9%

12.7%

9,441

515

17.6%

13.9%

3,268

     
                             
                           
       

For the 3 Months Ended June 30, 2011

           
 

Total
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Transactions
(millions)

Cash
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Cash
Transactions
(millions)

Accounts
(millions)

Cards
(millions)

 
                             

All Visa Credit & Debit

                           

Asia Pacific

$379

22.7%

13.2%

$248

25.5%

14.8%

2,758

$131

17.6%

10.4%

599

495

588

 

Canada

60

13.6%

7.7%

55

14.0%

8.0%

473

5

9.9%

4.2%

10

25

34

 

CEMEA

204

32.3%

27.0%

35

41.6%

35.5%

532

170

30.5%

25.4%

992

230

232

 

LAC

244

31.8%

22.9%

85

37.1%

27.7%

1,817

159

29.1%

20.5%

912

365

398

 

US

623

9.9%

9.9%

518

10.3%

10.3%

10,410

106

8.1%

8.1%

902

498

651

 

Visa Inc.

1,511

19.1%

14.7%

941

17.3%

13.5%

15,990

570

22.2%

16.8%

3,415

1,614

1,903

 
                             

Visa Credit Programs

                           

US

$234

9.4%

9.4%

$224

9.8%

9.8%

2,569

$11

2.0%

2.0%

17

199

258

 

Rest of World

400

25.0%

15.7%

348

25.3%

15.8%

4,042

52

22.6%

15.3%

179

448

509

 

Visa Inc.

634

18.8%

13.3%

572

18.8%

13.4%

6,610

62

18.5%

12.8%

196

647

766

 
                             

Visa Debit Programs

                           

US

$389

10.3%

10.3%

$294

10.7%

10.7%

7,841

$95

8.9%

8.9%

885

300

393

 

Rest of World

488

27.8%

20.5%

75

36.6%

27.3%

1,538

413

26.3%

19.4%

2,334

667

744

 

Visa Inc.

877

19.4%

15.8%

369

15.2%

13.7%

9,379

508

22.6%

17.3%

3,219

967

1,137

 
                             
                           
       

For the 3 Months Ended March 31, 2011

           
 

Total
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Transactions
(millions)

Cash
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Cash
Transactions
(millions)

Accounts
(millions)

Cards
(millions)

 
                             

All Visa Credit & Debit

                           

Asia Pacific

$352

18.7%

12.4%

$230

18.5%

11.8%

2,629

$121

19.0%

13.5%

578

476

573

 

Canada

52

12.3%

7.3%

48

11.4%

6.5%

420

5

21.2%

15.8%

9

25

33

 

CEMEA

177

26.5%

24.9%

30

33.8%

31.2%

483

147

25.1%

23.7%

906

226

225

 

LAC

222

26.8%

20.5%

77

32.5%

25.9%

1,740

145

23.9%

17.8%

860

360

389

 

US

576

11.1%

11.1%

477

11.6%

11.6%

9,581

99

8.9%

8.9%

839

507

648

 

Visa Inc.

1,379

17.2%

14.3%

862

15.7%

13.1%

14,854

517

19.9%

16.5%

3,193

1,594

1,868

 
                             

Visa Credit Programs

                           

US

$209

7.6%

7.6%

$199

9.1%

9.1%

2,284

$10

-16.4%

-16.4%

15

197

256

 

Rest of World

364

19.2%

13.2%

318

19.1%

12.9%

3,825

46

19.9%

15.5%

163

444

504

 

Visa Inc.

573

14.7%

11.1%

517

15.1%

11.4%

6,108

56

11.5%

8.3%

177

641

760

 
                             

Visa Debit Programs

                           

US

$367

13.2%

13.2%

$278

13.4%

13.4%

7,298

$89

12.6%

12.6%

824

309

392

 

Rest of World

439

24.4%

19.9%

68

31.8%

26.1%

1,448

372

23.2%

18.9%

2,192

644

715

 

Visa Inc.

806

19.1%

16.8%

345

16.6%

15.7%

8,746

461

21.0%

17.6%

3,016

953

1,108

 
                             
                           
       

For the 3 Months Ended December 31, 2010

           
 

Total
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Transactions
(millions)

Cash
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Cash
Transactions
(millions)

Accounts
(millions)

Cards
(millions)

 
                             

All Visa Credit & Debit

                           

Asia Pacific

$361

13.6%

7.9%

$240

21.9%

15.3%

2,767

$121

0.2%

-4.1%

591

473

571

 

Canada

58

12.1%

7.6%

53

11.3%

6.8%

467

5

22.8%

17.9%

9

25

33

 

CEMEA

184

25.6%

26.6%

30

32.8%

31.5%

478

154

24.3%

25.7%

955

219

222

 

LAC

233

21.4%

19.0%

81

26.0%

25.8%

1,822

151

19.1%

15.6%

914

358

387

 

US

592

11.5%

11.5%

493

12.5%

12.5%

9,999

99

7.0%

7.0%

852

529

685

 

Visa Inc.

1,428

15.3%

13.3%

898

16.6%

14.5%

15,533

530

13.2%

11.3%

3,321

1,604

1,898

 
                             

Visa Credit Programs

                           

US

$226

5.4%

5.4%

$216

7.6%

7.6%

2,534

$10

-26.7%

-26.7%

16

205

267

 

Rest of World

381

20.1%

15.2%

334

19.8%

14.7%

4,008

48

22.6%

18.7%

167

442

503

 

Visa Inc.

608

14.2%

11.3%

550

14.7%

11.8%

6,542

58

9.5%

6.9%

183

647

770

 
                             

Visa Debit Programs

                           

US

$365

15.7%

15.7%

$277

16.6%

16.6%

7,465

$88

13.1%

13.1%

835

324

419

 

Rest of World

454

16.5%

14.1%

71

33.3%

30.0%

1,526

384

13.8%

11.6%

2,302

633

709

 

Visa Inc.

820

16.1%

14.8%

348

19.6%

19.1%

8,991

472

13.7%

11.9%

3,138

957

1,127

 
                             
                           
       

For the 3 Months Ended September 30, 2010

           
 

Total
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Transactions
(millions)

Cash
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Cash
Transactions
(millions)

Accounts
(millions)

Cards
(millions)

 
                             

All Visa Credit & Debit

                           

Asia Pacific

$326

16.2%

11.6%

$212

16.2%

11.9%

2,681

$114

16.2%

10.9%

595

467

556

 

Canada

53

10.4%

7.4%

49

10.2%

7.2%

450

5

12.0%

8.9%

9

24

32

 

CEMEA

164

22.1%

23.2%

27

26.4%

27.6%

418

137

21.3%

22.4%

860

208

212

 

LAC

204

22.4%

20.1%

69

24.0%

23.8%

1,634

135

21.6%

18.4%

873

356

385

 

US

574

12.3%

12.3%

474

13.5%

13.5%

9,760

100

7.0%

7.0%

876

501

668

 

Visa Inc.

1,321

15.8%

14.3%

830

15.1%

13.8%

14,943

491

16.9%

15.1%

3,213

1,557

1,852

 
                             

Visa Credit Programs

                           

US

$217

3.3%

3.3%

$207

6.4%

6.4%

2,431

$10

-35.7%

-35.7%

17

208

269

 

Rest of World

338

14.6%

11.4%

295

14.5%

11.3%

3,835

43

15.3%

11.7%

157

439

501

 

Visa Inc.

555

9.9%

8.2%

503

11.0%

9.3%

6,266

53

0.1%

-1.5%

174

647

770

 
                             

Visa Debit Programs

                           

US

$357

18.6%

18.6%

$266

19.7%

19.7%

7,329

$90

15.7%

15.7%

859

294

399

 

Rest of World

409

22.2%

19.9%

61

34.2%

32.0%

1,347

348

20.3%

18.0%

2,180

616

683

 

Visa Inc.

765

20.5%

19.3%

327

22.1%

21.9%

8,676

438

19.3%

17.5%

3,039

910

1,082

 
                             
                           
       

For the 12 Months Ended September 30, 2011

           
 

Total
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Transactions
(millions)

Cash
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Cash
Transactions
(millions)

     
                             

All Visa Credit & Debit

                           

Asia Pacific

$1,492

19.4%

11.7%

$990

23.5%

14.7%

11,021

$503

12.1%

6.3%

2,393

     

Canada

231

13.1%

7.5%

211

12.8%

7.1%

1,849

20

17.0%

11.1%

39

     

CEMEA

778

28.7%

26.6%

133

37.3%

34.0%

2,058

646

27.1%

25.1%

3,853

     

LAC

948

25.5%

19.8%

333

31.5%

26.0%

7,295

615

22.5%

16.6%

3,614

     

US

2,416

10.4%

10.4%

2,004

10.8%

10.8%

40,466

412

8.2%

8.2%

3,497

     

Visa Inc.

5,866

17.2%

14.0%

3,670

16.6%

13.6%

62,689

2,196

18.3%

14.6%

13,395

     
                             

Visa Credit Programs

                           

US

$911

8.4%

8.4%

$867

9.2%

9.2%

10,048

$43

-6.1%

-6.1%

65

     

Rest of World

1,565

22.2%

14.9%

1,368

22.3%

14.8%

16,084

197

21.2%

15.5%

690

     

Visa Inc.

2,476

16.7%

12.4%

2,235

16.9%

12.6%

26,132

240

15.1%

10.9%

755

     
                             

Visa Debit Programs

                           

US

$1,505

11.6%

11.6%

$1,137

12.0%

12.0%

30,418

$369

10.2%

10.2%

3,431

     

Rest of World

1,885

22.9%

18.2%

299

35.5%

29.0%

6,139

1,587

20.8%

16.3%

9,209

     

Visa Inc.

3,391

17.6%

15.1%

1,435

16.2%

15.2%

36,557

1,956

18.7%

15.1%

12,640

     
                             
                           
       

For the 12 Months Ended September 30, 2010

           
 

Total
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Payments
Transactions
(millions)

Cash
Volume
($ billions)

Growth
(Nominal
USD)

Growth
(Constant
USD)

Cash
Transactions
(millions)

Accounts
(millions)

Cards
(millions)

 
                             

All Visa Credit & Debit

                           

Asia Pacific

$1,250

23.5%

13.7%

$801

22.2%

12.0%

10,262

$449

25.8%

17.0%

2,298

467

556

 

Canada

204

18.9%

5.6%

187

20.6%

7.2%

1,701

17

3.2%

-8.9%

36

24

32

 

CEMEA

605

21.5%

19.2%

97

28.4%

23.3%

1,522

508

20.3%

18.4%

3,277

208

212

 

LAC

755

28.2%

16.4%

253

31.0%

20.7%

6,106

502

26.9%

14.4%

3,414

356

385

 

US

2,189

10.0%

10.0%

1,809

11.8%

11.8%

36,601

381

2.3%

2.3%

3,250

501

668

 

Visa Inc.

5,004

17.4%

12.8%

3,147

16.7%

12.6%

56,191

1,857

18.8%

13.1%

12,273

1,557

1,852

 
                             

Visa Credit Programs

                           

US

$840

-0.7%

-0.7%

$794

3.6%

3.6%

9,270

$46

-42.2%

-42.2%

69

208

269

 

Rest of World

1,281

20.1%

10.2%

1,118

21.0%

10.9%

14,584

162

14.3%

5.2%

590

439

501

 

Visa Inc.

2,121

10.9%

5.8%

1,912

13.1%

7.9%

23,854

209

-6.1%

-10.5%

659

647

770

 
                             

Visa Debit Programs

                           

US

$1,349

18.0%

18.0%

$1,014

19.2%

19.2%

27,331

$335

14.5%

14.5%

3,180

294

399

 

Rest of World

1,534

27.3%

19.3%

220

41.4%

29.4%

5,007

1,314

25.2%

17.7%

8,433

616

683

 

Visa Inc.

2,883

22.8%

18.7%

1,235

22.6%

21.0%

32,337

1,648

22.9%

17.1%

11,614

910

1,082

 
                           
   

Footnote

 

The preceding tables present regional total volume, payments volume and cash volume, and 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 years 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 Central Europe, the Middle East and Africa. Effective with the 3 months ended September, 2009, Pakistan and Afghanistan were moved from the AP to CEMEA region. Several European Union countries in Central Europe, Israel and Turkey are not included in CEMEA. LAC is comprised of countries in Central and South America and the Caribbean. Rest of World includes Asia Pacific, Canada, CEMEA and LAC.

 
   

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 year-over-year 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. Cross Border Volume

 

The table below represents cross border volume growth for cards carrying the Visa, Visa Electron, Interlink and PLUS brands. Cross border volume refers to payments and cash volume where the issuing country is different from the merchant country.

 
   
 

Period

Growth
(Nominal
USD)

Growth
(Constant
USD)

 

3 Months Ended

     

Sep 30, 2011

19%

15%

 

Jun 30, 2011

20%

14%

 

Mar 31, 2011

16%

13%

 

Dec 31, 2010

16%

15%

 

Sep 30, 2010

17%

16%

 
       

12 Months Ended

     

Sep 30, 2011

18%

14%

 

Sep 30, 2010

16%

12%

 
     

3. Processed Transactions

 

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa's networks. CyberSource transactions are not included in this table, and are reported in the next section.

 
 
       

Period

Processed
Transactions
(millions)

Growth

 
       

3 Months Ended

     

Sep 30, 2011

13,263

9%

 

Jun 30, 2011

13,038

11%

 

Mar 31, 2011

12,040

13%

 

Dec 31, 2010

12,580

15%

 

Sep 30, 2010

12,119

16%

 
       

12 Months Ended

     

Sep 30, 2011

50,922

12%

 

Sep 30, 2010

45,411

14%

 
       
   
     
       

4. CyberSource Billable Transactions

     
       

The table below represents billable transactions processed on Visa Inc.'s CyberSource network.

 
     
       

Period

Billable
Transactions
(millions)

Growth

 
       

3 Months Ended

     

Sep 30, 2011

1,088

31%

 

Jun 30, 2011

1,045

38%

 

Mar 31, 2011

1,018

38%

 

Dec 31, 2010

987

40%

 

Sep 30, 2010

829

36%

 
       

12 Months Ended

     

Sep 30, 2011

4,137

36%

 

Sep 30, 2010

3,032

32%

 
     

SOURCE Visa Inc.