Visa Inc. Reports Fiscal Third Quarter 2008 Earnings Results
- GAAP net income of $422 million for the quarter
- Adjusted net income of $457 million for the quarter
- GAAP diluted class A common earnings per share of $0.51 for the quarter
- Adjusted diluted class A common earnings per share of $0.59 for the
quarter
- Payment volume grew 19% over the prior year to $652 billion
- Company raises long-term outlook for adjusted operating margins
SAN FRANCISCO, July 30 /PRNewswire-FirstCall/ -- Visa Inc. (NYSE: V) today announced financial results for the Company's fiscal third quarter ended June 30, 2008. GAAP net income for the quarter was $422 million, or $0.51 per diluted class A common share. GAAP diluted class A common shares outstanding were 776 million. On an adjusted basis (reflective of a normalized tax rate and excluding certain litigation, restructuring and purchase amortization), net income for the quarter was $457 million, or $0.59 per diluted class A common share. Adjusted diluted class A common shares outstanding were 779 million.
Net operating revenue in the fiscal third quarter 2008 was $1.6 billion, driven by strong contributions from service fees, data processing fees, and international transaction fees as payment volumes and processed transactions rose across all regions worldwide.
"We are very pleased with our fiscal third quarter results as Visa continues to lead and benefit from the global migration to electronic payments while expanding our business worldwide," said Joe Saunders, Visa's chairman and chief executive officer. "Despite a challenging economic environment in the United States and a softening in traditional credit card spending, the strength of Visa's debit business drove solid growth in the region. In Asia Pacific, Latin America, Canada and CEMEA, Visa achieved strong growth across its range of product offerings, reinforcing our position as the world's leading payments brand and network."
"The Company's strong financial performance and double-digit increases in payments volume and transactions in this current economic environment are further proof of the resiliency of our network business model," added Saunders. "As we look to the future, we remain committed to being the best partner for our financial institution and merchant clients by investing in innovations that deliver measurable returns to their businesses and value to consumers and merchants."
Fiscal Third Quarter 2008 Financial Highlights:
Visa Inc.'s operational performance highlights for the fiscal third quarter, as measured by March 31, 2008 statistical data, include:
-- Payments volume grew 19% over the prior year to $652 billion;
-- Total volume, inclusive of cash volume was $1.0 trillion, an increase of 22% over the prior year;
-- Total cards carrying the Visa brands rose 14% worldwide to 1.6 billion over the prior year; and
-- Total payment transactions increased by 15% over the prior year to 10.7 billion.
Total processed transactions, which are based on current fiscal third quarter results on Visa's processing system, were 9.5 billion, a 13% increase over the prior year.
For the fiscal third quarter 2008, service fees were $749 million, up 13% over the prior year on a pro forma basis, and were recognized based on payment volume in the prior quarter. All other fee categories are recognized based on current quarter activity and are also compared on a pro forma basis. Data processing fees rose 20% over the prior year on a pro forma basis to $539 million. International transaction fees, which are driven by cross-border payments volume, grew 44% over the prior year on a pro forma basis to $449 million, as we continued to benefit from higher multi-currency payments volumes across all regions during the fiscal third quarter. Other revenue, which includes the Visa Europe licensing fee, was $150 million during the fiscal third quarter, up 26% over the prior year on a pro forma basis. Volume and incentive payments, which are a contra revenue item, were $274 million for the fiscal third quarter.
Total operating expenses were $965 million for the fiscal third quarter, a 5% increase over the prior year on a pro forma basis.
Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $8.4 billion at June 30, 2008, and includes $2.7 billion that the Company intends to use to redeem all of the Company's class C (series II) and a portion of the class C (series III) shares in October 2008.
The Company's net income and earnings per share, excluding special items, are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measure in the accompanying financial tables.
Management believes the presentation of adjusted operating income and adjusted net income provides a clearer understanding of the one-time items related to the Company's reorganization and initial public offering. These measures also adjust for expenses related to covered litigation that will be funded by the litigation escrow account through the retrospective responsibility plan and a $31 million after-tax charge taken in the third quarter related to non-recurring legacy litigation items. The third quarter charge is not funded by the litigation escrow account. These items have a significant impact on our financial results but are either non-recurring or have no operating cash impact. Recognizing that we have a very complex equity structure incorporating multiple classes and series of common stock, the Company has also presented adjusted diluted class A earnings per share calculated based on adjusted net income and the adjusted weighted average number of shares outstanding in the periods presented. This non-GAAP financial measure has been presented to illustrate our per share results reflecting our capital structure after the redemption of all class C (series II) common stock and a portion of class C (series III) common stock, which the Company intends to redeem in October 2008. The class C (series II) common stock is classified as temporary equity and the class C (series III) common stock is classified as a liability on the Company's consolidated balance sheet at June 30, 2008. Management believes this non-GAAP presentation provides the reader with a clearer understanding of our per share results by excluding those shares to be redeemed and allocating adjusted net income only to classes and series of common stock classified as permanent equity.
Fiscal Year-to-Date 2008 Results:
For the nine months ended June 30, 2008, Visa Inc. reported GAAP net income of $1.2 billion, or $1.44 per diluted class A common share. GAAP diluted class A common shares outstanding were 767 million.
On an adjusted basis, (reflective of a normalized tax rate and excluding litigation, restructuring, and purchase amortization) net income for the nine months ended June 30, 2008, was $1.3 billion, or $1.67 per diluted class A common share. Adjusted diluted class A common shares outstanding were 779 million.
Net operating revenue for the nine months ended June 30, 2008, was $4.6 billion, an increase of 22% over the prior year on a pro forma basis.
Total operating expenses were $2.9 billion for the nine months ended June 30, 2008, an increase of 15% over the prior year on a pro forma basis.
Financial Outlook:
Visa Inc. raises its financial outlook for the following metric for FY 2008:
-- Annual adjusted operating margin in the mid 40%'s range.
Visa Inc. raises its financial outlook for the following metric for FY 2009 and 2010:
-- Annual adjusted operating margin in the mid-to-high 40%'s range.
Visa Inc. reaffirms its financial outlook for the following metrics through 2010:
-- Annual net revenue growth of 11% to 15%;
-- Annual adjusted diluted class A common earnings per share growth of 20% or greater; and
-- Annual free cash flow (cash flow from operations plus cash reimbursements from litigation escrow less capital spending) in excess of $1 billion.
This outlook reflects an assumed 41% percent GAAP tax rate for fiscal year 2008. The Company's intent is to reduce this rate to a level around 35-36% over the next five years.
Fiscal Third Quarter Results Webcast Information
Visa's executive management team will host a live audio webcast beginning at 5:00 p.m. EDT (2:00 p.m. PDT) today to discuss the financial results and business highlights.
All interested parties are invited to listen to the live webcast at http://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 http://investor.visa.com
About Visa Inc.
Visa Inc. operates the world's largest retail electronic payments network providing processing services and payment product platforms. This includes consumer credit, debit, prepaid and commercial payments, which are offered under the Visa, Visa Electron, Interlink and PLUS brands. Visa enjoys unsurpassed acceptance around the world, and Visa/PLUS is one of the world's largest global ATM networks, offering cash access in local currency in more than 170 countries. For more information, visit www.corporate.visa.com.
Forward Looking Statements
Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. These statements can be identified by the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will" and similar expressions which are intended to identify forward-looking statements. In addition, any underlying assumptions are forward-looking statements. Such forward-looking statements include but are not limited to statements regarding certain of Visa's goals and expectations with respect to adjusted earnings per share, revenue, adjusted operating margin, and free cash flow, and the growth rate in those items, as well as other measures of economic performance.
By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are not guarantees of future performance or results and (iii) are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements as a result of a variety of factors, including all the risks discussed under the heading "Risk Factors" in our Prospectus dated March 18, 2008, filed with the U.S. Securities and Exchange Commission pursuant to Rule 424(b)(4) on March 19, 2008. You are cautioned not to place undue reliance on such statements, which speak only as of the date of this press release. Unless required to do so under U.S. federal securities laws or other applicable laws, we do not intend to update or revise any forward-looking statements.
Visa Inc.
Consolidated Statements of Operations
(unaudited)
For the three For the nine
months ended months ended
June 30, June 30,
2007 2007
2008 Pro forma 2008 Pro forma
(in millions except per share data)
Operating Revenues
Service fees $749 $661 $2,273 $1,852
Data processing fees 539 449 1,525 1,196
Volume and support incentives (274) (175) (862) (498)
International transaction fees 449 311 1,209 839
Other revenues 150 119 409 340
Total operating revenues 1,613 1,365 4,554 3,729
Operating Expenses
Personnel 310 293 882 835
Network, EDP, and communications 84 87 245 224
Advertising, marketing, and promotion 271 244 696 631
Professional and consulting fees 108 159 302 396
Depreciation and amortization 57 55 178 164
Administrative and other 85 83 234 233
Litigation provision 50 - 342 15
Total operating expenses 965 921 2,879 2,498
Operating income 648 444 1,675 1,231
Other Income (Expense)
Equity in earnings of unconsolidated
affiliates - - 1 -
Interest expense (30) (25) (116) (72)
Investment income, net 97 56 172 132
Other (1) 8 35 8
Total other income (expense) 66 39 92 68
Income before income taxes 714 483 1,767 1,299
Income tax expense 292 184 607 505
Net income $422 $299 $1,160 $794
Basic net income per share (1)
Class A common stock $0.51 $1.44
Class B common stock $0.36 $1.33
Class C (series I) common stock $0.51 $1.44
Class C (series II) common stock $0.12 $0.75
Class C (series III and IV)
common stock $0.51 $1.44
Basic weighted average shares
outstanding, in thousands (1)
Class A common stock 446,600 169,512
Class B common stock 245,513 362,628
Class C (series I) common stock 124,503 212,779
Class C (series II) common stock 79,749 47,583
Class C (series III and IV)
common stock 27,499 49,378
Diluted net income per share (1)
Class A common stock $0.51 $1.44
Class B common stock $0.36 $1.33
Class C (series I) common stock $0.51 $1.44
Class C (series II) common stock $0.12 $0.75
Class C (series III and IV)
common stock $0.51 $1.44
Diluted weighted average shares
outstanding, in thousands (1)
Class A common stock 776,090 766,983
Class B common stock 245,513 362,628
Class C (series I) common stock 124,506 212,780
Class C (series II) common stock 79,749 47,583
Class C (series III and IV)
common stock 27,499 49,378
(1) There is no comparable earnings per share measure for 2007 as we
were a non-stock company.
Visa Inc.
Consolidated Balance Sheets
(unaudited)
June 30, October 1,
2008 2007
(in millions)
Assets
Cash and cash equivalents $5,762 $1,278
Restricted cash - litigation escrow 1,291 -
Investment securities, available-for-sale 477 842
Settlement receivable 1,230 587
Accounts receivable 342 318
Customer collateral 520 389
Current portion of volume and
support incentives 257 135
Current portion of deferred tax assets 587 771
Prepaid and other current assets 295 381
Total current assets 10,761 4,701
Restricted cash - litigation escrow 700 -
Investment securities, available-for-sale 188 743
Volume and support incentives 84 72
Property, equipment, and technology, net 1,048 906
Other assets 639 625
Intangible assets 10,883 10,883
Goodwill 10,139 9,139
Total assets $34,442 $27,069
Liabilities
Accounts payable $109 $164
Settlement payable 1,153 644
Customer collateral 520 389
Accrued compensation and benefits 372 479
Volume and support incentives 310 294
Accrued liabilities 383 496
Current portion of long-term debt 11 84
Current portion of accrued litigation 1,606 2,236
Cash dividends payable 93 -
Redeemable class C (series III)
common stock, 35,263,585 shares
outstanding at June 30, 2008 1,508 -
Total current liabilities 6,065 4,786
Long-term debt 98 40
Accrued litigation 1,303 1,446
Deferred tax liabilities 3,545 3,758
Other liabilities 755 754
Total liabilities 11,766 10,784
Temporary Equity
Class C (series II) common stock,
$0.0001 par value, 218,582,801
shares authorized, 79,748,857
shares issued and outstanding at
June 30, 2008, net of
subscription receivable 1,127 -
Total temporary equity 1,127 -
Stockholders' Equity
Preferred stock, $0.0001 par
value, 25,000,000 shares
authorized and none issued - -
Class A common stock, $0.0001 par
value, 2,001,622,245,209 shares
authorized, 447,880,089 issued
and outstanding - -
Class B common stock, $0.0001 par
value, 622,245,209 shares
authorized, 245,513,385 issued
and outstanding - -
Class C (series I) common stock,
$0.0001 par value, 813,582,801
shares authorized, 124,510,448
issued and outstanding - -
Class C (series III) common
stock, $0.0001 par value,
64,000,000 shares authorized,
26,949,616 issued and
outstanding - -
Class C (series IV) common stock,
$0.0001 par value, 1,000,000
shares authorized, 549,587
issued and outstanding - -
Additional paid-in capital 21,007 16,785
Accumulated income (deficit) 551 (500)
Accumulated other comprehensive loss, net (9) -
Total stockholders' equity and
accumulated net income (deficit) 21,549 16,285
Total liabilities, temporary
equity, and stockholders' equity $34,442 $27,069
VISA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
For the Nine Months Ended June 30,
2008 2007 (1)
(in millions)
Operating Activities
Net income $1,160 $608
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization of
property, equipment, and technology 178 85
Amortization of intangibles,
investments, debt issuance cost,
and accretion of member deposits - 8
Share-based compensation 47 -
Fair value adjustment for liability
under the framework agreement (35) -
Interest earned on litigation
escrow, net of tax (6) -
Net recognized loss (gain) on
investment securities, including
other-than-temporary impairment 12 (2)
(Gain) loss on disposal of property,
equipment and technology (1) 1
Minority interest - 5
Amortization of volume and
support incentives 862 346
Accrued litigation and accretion 447 69
Equity in earnings of
unconsolidated affiliates (1) (38)
Deferred income taxes 136 (2)
Change in operating assets and liabilities:
Accounts receivable (24) (14)
Settlement receivable (642) 4
Volume and support incentives (980) (417)
Other assets (76) 12
Accounts payable (60) (45)
Settlement payable 510 (8)
Accrued compensation and benefits (99) 5
Accrued and other liabilities 52 35
Accrued litigation (1,220) (2)
Member deposits (3) (107)
Net cash provided by operating activities 257 543
Investing Activities
Investment securities, available-for-sale:
Purchases (1,504) (2,202)
Proceeds from sales and maturities 2,402 2,083
Cash acquired through reorganization 1,002 -
Contributions to joint ventures - (1)
Purchases of/contributions to
other investments (24) -
Distributions from other investments 22 -
Purchases of property, equipment
and technology (323) (76)
Proceeds from sale of property,
equipment and technology 4 -
Net cash provided by (used in)
investing activities 1,579 (196)
Financing Activities
Proceeds from short-term borrowing 2 -
Payments on short-term borrowing (2) -
Proceeds from sale of common stock,
net of issuance costs of $550 19,100 -
Funding of litigation escrow
account - Retrospective
Responsibility Plan (3,000) -
Funding from litigation escrow
account - Retrospective
Responsibility Plan 1,015 -
Funding of tax escrow account for
income tax withheld on stock proceeds (116) -
Funding from tax escrow account 116 -
Payment for redemption of stock (13,446) -
Principal payments on debt (15) (25)
Principal payments on capital
lease obligations (3) (2)
Net cash provided by (used in)
financing activities 3,651 (27)
Increase in cash and cash equivalents 5,487 320
Cash and cash equivalents at
beginning of year 275 270
Cash and cash equivalents at end
of period $5,762 $590
Supplemental Disclosure of Cash
Flow Information
Income taxes paid, net of refunds $563 $301
Decrease in accounts payable and
accrued and other liabilities
related to purchases of property,
equipment, and technology $(27) $(10)
Interest payments on debt $6 $3
Cash dividends declared but unpaid $93 -
Common stock issued in reorganization $17,935 -
(1) Historical balances for periods prior to October 1, 2007 represent
balances for Visa U.S.A. Inc., deemed the accounting acquirer in the
business combination.
Pro Forma Fiscal 2007 Quarterly Results of Operations
US$ in millions
Pro Forma Fiscal 2007 Quarter Ended (1)
December March June September
31, 31, 30, 30,
2006 2007 2007 (2) 2007 (2)
Operating Revenues
Service fees $577 $614 $661 $730
Data processing fees 377 370 449 463
Volume and support incentives (136) (187) (175) (216)
International transaction fees 247 281 311 354
Other revenues 108 113 119 133
Total operating revenues 1,173 1,191 1,365 1,464
Operating Expenses
Personnel 273 269 293 324
Network, EDP and communications 68 69 87 84
Advertising, marketing and
promotion 205 182 244 444
Professional and consulting fees 101 136 159 156
Depreciation and amortization 55 54 55 64
Administrative and other 76 74 83 101
Litigation provision 2 13 - 2,638
Total operating expenses 780 797 921 3,811
Operating income (loss) 393 394 444 (2,347)
Other Income (Expense)
Interest expense (23) (24) (25) (24)
Investment income, net 40 36 56 65
Other - - 8 -
Total other income 17 12 39 41
Income (loss) before income taxes 410 406 483 (2,306)
Income tax expense/(benefit) 161 160 184 (651)
Net income (loss) $249 $246 $299 $(1,655)
(1) Visa Inc. had no operations prior to the reorganization on
October 1, 2007. In order to provide insight into our operating
results, the pro forma results of operations for the prior
periods have been prepared for comparative purposes assuming that
the reorganization had occurred on October 1, 2006. These pro
forma statements of operations have been prepared in accordance
with Statement of Financial Accounting Standards No. 141,
"Business Combinations."
(2) Certain immaterial reclassifications were made to the quarter
ended June 30 and September 30, 2007 pro forma financial
statements to conform to the current presentation.
Pro Forma Fiscal 2007 Results of Operations (1)(2)
US$ in millions
For the Three For the Nine
Months Ended Months Ended
June 30, 2007 June 30, 2007
Operating Revenues
Service fees $661 $1,852
Data processing fees 449 1,196
Volume and support incentives (175) (498)
International transaction fees 311 839
Other revenues 119 340
Total operating revenues 1,365 3,729
Operating Expenses
Personnel 293 835
Network, EDP, and communications 87 224
Advertising, marketing, and promotion 244 631
Professional and consulting fees 159 396
Depreciation and amortization 55 164
Administrative and other 83 233
Litigation provision - 15
Total operating expenses 921 2,498
Operating income 444 1,231
Other Income (Expense)
Interest expense (25) (72)
Investment income, net 56 132
Other 8 8
Total other income 39 68
Income before income taxes 483 1,299
Income tax expense 184 505
Net income $299 $794
(1) Visa Inc. had no operations prior to the reorganization on October
1, 2007. In order to provide insight into our operating results, the
pro forma results of operations for the prior periods have been
prepared for comparative purposes assuming that the reorganization
had occurred on October 1, 2006. These pro forma statements of
operations have been prepared in accordance with Statement of
Financial Accounting Standards No. 141, "Business Combinations."
(2) Certain immaterial reclassifications were made to the three and nine
months ended June 30, 2007 pro forma financial statements to conform
to the current presentation.
Reconciliation of Non-GAAP Adjusted Operating Income and Net Income
US$ in millions
Pro Pro
Forma Forma
For the For the For the For the For the
Three Nine Three Nine Three
Months Months Months Months Months
Ended Ended ended ended Ended
June 30,June 30,June 30,June 30,March 31,
2008 2008 2007 2007 2008
Net income (as reported) $422 $1,160 $299 $794 $314
Addback: Income tax
expense (as reported) 292 607 184 505 56
Net income before taxes
(as reported) $714 $1,767 $483 $1,299 $370
Adjustments:
Litigation reserve (1) 50 335 - - 285
Restructuring (2) 15 70 52 99 19
Asset step-up
amortization (3) 17 51 17 51 17
Adjustments to operating
income 82 456 69 150 321
Interest accretion on
American Express
settlement (4) 11 57 - - 23
Investment income on Litigation
Escrow and EU proceeds (5) (33) (40) - - (7)
Underwater contract (LIBOR
adjustment) (6) 1 (35) - - (28)
Adjustments to non-operating
income (21) (18) - - (12)
Total adjustments 61 438 69 150 309
Adjusted net income before tax 775 2,205 552 1,449 679
Adjusted income tax expense (7) (318) (904) (226) (594) (278)
Adjusted net income $457 $1,301 $326 $855 $401
Operating income (as reported) $648 $1,675 $444 $1,231 $349
Addback: Adjustments to
operating income 82 456 69 150 321
Adjusted operating income $730 $2,131 $513 $1,381 $670
Operating revenues (as reported) $1,613 $4,554 $1,365 3,729 $1,453
Adjusted operating margin 45% 47% 38% 37% 46%
Total operating expenses
(as reported) $965 $2,879 $921 $2,498 $1,104
Less: Adjustments to
operating expenses (82) (456) (69) (150) (321)
Adjusted operating expenses $883 $2,423 $852 $2,348 $783
(1) Litigation expense recorded in the period that is non-recurring and
management believes is not indicative of Visa's future anticipated
expenses. Litigation expense recorded in the quarter ended June 30,
2008 is related to non-recurring legacy litigation items. This
expense is not covered under the retrospective responsibility plan and
will not be paid from the litigation escrow account. Amounts recorded
in prior quarters relate to covered litigation. Settlements of, or
judgments in, covered litigation will be paid from the litigation
escrow account.
(2) Restructuring costs, primarily severance in fiscal 2008, associated
with workforce consolidation and elimination of overlapping functions.
(3) Non-cash amortization and depreciation of the incremental basis in
technology and building assets acquired in the reorganization.
(4) Non-cash interest expense recorded on future payments to be made under
the settlement agreement with American Express. These payments will be
paid from the litigation escrow account.
(5) Investment income earned during the period on all IPO proceeds held,
including amounts held in the litigation escrow and amounts the
Company intends to use in October 2008 to redeem all class C (series
II) common stock and a portion of the class C (series III) common
stock held by Visa Europe.
(6) Other expense (income) recorded in the periods presented as a result
of changes in the Company's estimated liability under the Framework
Agreement, which governs its relationship with Visa Europe. The
changes were primarily due to movement in the LIBOR rates in the
periods presented. This liability will not continue after the October
2008 redemptions described above.
(7) Reflects a normalized tax rate of 41%.
Reconciliation of Non-GAAP Weighted Average Class A Common Stock
Outstanding Used in the Calculation of Adjusted Diluted Class A Earnings
Per Share
For the For the For the
Three Nine Three
Months Months Months
Ended Ended Ended
June 30, June 30, March 31,
2008 2008 2008
(in millions)
Weighted Average Shares
Outstanding - GAAP 776 767 778
Class A Shares (1) - 277 383
Class B Shares (2) - (159) (226)
Class C Shares (3) - (109) (161)
Class A Share
Equivalents (4) 3 3 5
Share Adjustments 3 12 1
Adjusted Weighted Average
Shares Outstanding - Non GAAP 779 779 779
(1) For the three months ended March 31, 2008 and nine months ended June
30, 2008, for GAAP purposes, the number of class A common shares
outstanding is weighted to reflect the issuance of 446,600,000 shares
at the IPO date of March 19, 2008. In the calculation of the adjusted
weighted average shares outstanding, these shares are assumed to have
been issued at January 1, 2008 for the three months ended March 31,
2008 and October 1, 2007 for the nine months ended June 30, 2008.
(2) For the three months ended March 31, 2008 and nine months ended June
30, 2008, for GAAP purposes, the number of class B common shares
outstanding is weighted to reflect the redemption of 154,738,487
shares on March 28, 2008 and the reduction of the conversion ratio
applicable to remaining shares outstanding to 0.71 to 1. In the
calculation of the adjusted weighted average shares outstanding, these
shares are weighted to assume that the redemption and reduction in
conversion ratio had occurred at January 1, 2008 for the three months
ended March 31, 2008 and October 1, 2007 for the nine months ended
June 30, 2008.
(3) For the three months ended March 31, 2008 and nine months ended June
30, 2008, for GAAP purposes, the number of class C (series I, II, III
& IV) common shares is weighted to reflect the redemption of
159,657,751 shares of class C (series I) common stock on March 28,
2008, and the reclassification of all shares of class C (series II)
common stock to temporary equity and 35,263,585 shares of class C
(series III) common stock to liabilities on the IPO date of March 19,
2008. Upon reclassification of the class C (series II) and class C
(series III) common stock these shares are no longer convertible into
shares of class A common stock. In the calculation of adjusted
weighted average shares outstanding, these shares are weighted to
assume that the redemption and reclassifications occurred at January
1, 2008 for the three months ended March 31, 2008 and October 1, 2007
for the nine months ended June 30, 2008.
(4) For GAAP purposes, the number of class A common shares outstanding is
weighted to reflect the assumed issuance of class A common stock
underlying stock options, restricted stock and restricted stock units
to employees and directors at the IPO date of March 19, 2008 and
during the three months ended June 30, 2008, by applying the treasury
stock method. For the three months ended March 31, 2008 and nine
months ended June 30, 2008, in the calculation of adjusted weighted
shares outstanding, these shares are assumed to have been issued at
October 1, 2007 and were outstanding for the entire period. The share
adjustments also reflect the estimated number of stock options,
restricted stock and restricted stock units estimated to be
outstanding in October 2008 after the redemption of the class C
(series II and series III) common shares held by Visa Europe.
Class A Common Stock Adjusted Diluted Earnings Per Share
-- Management believes the presentation of adjusted operating income and adjusted net income provides a clearer understanding of the one-time items related to the Company's reorganization, initial public offering and other non-recurring events. These measures also adjust for expenses related to covered litigation that will be funded by the litigation escrow account and a $31 million after-tax charge taken in the third quarter related to non-recurring legacy litigation items that will not be funded by the litigation escrow account. These items have a significant impact on our financial results but are either non-recurring or have no operating cash impact.
-- Recognizing that we have a very complex equity structure incorporating multiple classes and series of common stock, the Company has also presented adjusted diluted class A earnings per share calculated below based on adjusted net income and the adjusted weighted average number of shares outstanding in the periods presented. This non-GAAP financial measure has been presented to illustrate our per share results reflecting our capital structure after the redemption of all class C (series II) common stock and a portion of class C (series III) common stock, which the Company intends to redeem in October 2008. The class C (series II) common stock is classified as temporary equity and the redeemable class C (series III) common stock is classified as a liability on the Company's consolidated balance sheet at June 30, 2008. Management believes this non-GAAP presentation provides the reader with a clearer understanding of our per share results by excluding these shares to be redeemed and allocating adjusted net income only to permanent equity.
For the For the For the
Three Nine Three
Months Months Months
Ended Ended Ended
June 30, June 30, March 31,
2008 2008 2008
(in millions, except per share data)
Adjusted net income $457 $1,301 $401
Adjusted weighted average number
of diluted shares outstanding 779 779 779
Adjusted diluted earnings per share $0.59 $1.67 $0.52
Operational Performance Data
The tables below provide information regarding the operational results for the 3 months ended March 31, 2008, as well as the prior eight quarterly reporting periods and the years ended December 31, 2005, 2006 and 2007, for cards carrying the Visa, Visa Electron and Interlink brands.
1. Branded Volume and Transactions
The tables present Payments Volume, Cash Volume, Total Volume, the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior periods are provided for volume-based data.
For the 3 Months Ended March 31, 2008
Total Growth Growth Payments Growth
Volume (Nom (Cons Volume Growth (Cons
($bill inal tant ($bill (Nominal tant
ions) USD) USD) ions) USD) USD)
All Visa Credit & Debit
Asia Pacific 245 29.4% 21.2% 159 26.5% 18.1%
Canada 47 30.9% 10.0% 41 30.5% 9.7%
CEMEA 114 40.8% 36.6% 17 40.4% 38.9%
LAC 143 37.8% 21.8% 46 47.5% 30.1%
US 488 10.9% 10.9% 388 12.0% 12.0%
Visa Inc. 1,036 22.0% 17.1% 652 19.1% 15.0%
Visa Credit Programs
US 231 8.0% 8.0% 195 8.1% 8.1%
Rest of World 268 28.5% 17.9% 229 29.5% 18.2%
Visa Inc. 499 18.1% 13.1% 424 18.7% 13.3%
Visa Debit Programs
US 257 13.6% 13.6% 193 16.3% 16.3%
Rest of World 280 39.6% 28.7% 35 44.1% 31.7%
Visa Inc. 537 25.8% 21.0% 228 19.8% 18.4%
Payments Cash
Transac Cash Growth Growth Transac Acc
tions Volume (Nom (Cons tions ounts Cards
(mill ($bill inal tant (mill (mill (mill
ions) ions) USD) USD) ions) ions) ions)
All Visa Credit & Debit
Asia Pacific 1,913 85 35.2% 27.4% 458 382 463
Canada 337 6 33.8% 12.5% 9 24 31
CEMEA 236 96 40.9% 36.2% 584 148 156
LAC 1,123 97 33.7% 18.2% 719 288 312
US 7,073 100 6.8% 6.8% 694 459 667
Visa Inc. 10,682 384 27.3% 20.7% 2,464 1,300 1,629
Visa Credit Programs
US 2,167 36 7.5% 7.5% 31 260 368
Rest of World 2,798 39 23.0% 16.1% 134 387 446
Visa Inc. 4,964 75 15.0% 11.8% 165 647 814
Visa Debit Programs
US 4,906 64 6.3% 6.3% 663 198 299
Rest of World 812 245 38.9% 28.3% 1,636 454 515
Visa Inc. 5,718 309 30.7% 23.0% 2,299 653 815
For the 3 Months Ended December 31, 2007
Total Growth Growth Payments Growth
Volume (Nom (Cons Volume Growth (Cons
($bill inal tant ($bill (Nominal tant
ions) USD) USD) ions) USD) USD)
All Visa Credit & Debit
Asia Pacific 241 28.4% 23.0% 158 24.3% 19.6%
Canada 51 29.3% 13.6% 45 28.5% 12.8%
CEMEA 115 43.8% 38.9% 18 44.1% 40.1%
LAC 145 33.3% 21.3% 47 44.1% 30.5%
US 514 11.4% 11.4% 413 12.4% 12.4%
Visa Inc. 1,067 21.5% 17.9% 680 18.5% 15.7%
Visa Credit Programs
US 253 9.1% 9.1% 218 9.7% 9.7%
Rest of World 272 26.7% 19.5% 232 27.3% 19.7%
Visa Inc. 525 17.6% 14.3% 450 18.1% 14.6%
Visa Debit Programs
US 261 13.8% 13.8% 195 15.5% 15.5%
Rest of World 281 39.1% 29.8% 36 43.5% 32.9%
Visa Inc. 542 25.6% 21.6% 231 19.1% 17.9%
Payments Cash
Transac Cash Growth Growth Transac Acc
tions Volume (Nom (Cons tions ounts Cards
(mill ($bill inal tant (mill (mill (mill
ions) ions) USD) USD) ions) ions) ions)
All Visa Credit & Debit
Asia Pacific 1,931 83 36.9% 29.9% 452 368 446
Canada 382 6 36.5% 19.9% 9 23 31
CEMEA 235 97 43.8% 38.7% 590 139 147
LAC 1,132 99 28.8% 17.4% 757 284 307
US 7,412 102 7.8% 7.8% 717 458 664
Visa Inc. 11,092 387 27.3% 21.8% 2,525 1,272 1,594
Visa Credit Programs
US 2,462 36 5.9% 5.9% 33 259 365
Rest of World 2,863 40 23.2% 18.5% 136 372 431
Visa Inc. 5,325 75 14.4% 12.2% 169 631 796
Visa Debit Programs
US 4,950 66 8.9% 8.9% 684 199 299
Rest of World 817 245 38.5% 29.4% 1,672 442 500
Visa Inc. 5,767 311 30.9% 24.4% 2,356 641 798
For the 3 Months Ended September 30, 2007
Total Growth Growth Payments Growth
Volume (Nom (Cons Volume Growth (Cons
($bill inal tant ($bill (Nominal tant
ions) USD) USD) ions) USD) USD)
All Visa Credit & Debit
Asia Pacific 215 25.6% 19.6% 140 22.1% 16.8%
Canada 47 22.7% 12.9% 42 21.4% 11.8%
CEMEA 101 43.0% 38.4% 15 39.0% 35.1%
LAC 121 26.7% 19.0% 38 38.5% 29.6%
US 489 9.6% 9.6% 388 10.7% 10.7%
Visa Inc. 972 18.4% 15.5% 623 15.8% 13.6%
Visa Credit Programs
US 240 6.7% 6.7% 206 8.5% 8.5%
Rest of World 243 22.5% 16.4% 206 23.6% 17.2%
Visa Inc. 483 14.1% 11.4% 412 15.6% 12.7%
Visa Debit Programs
US 249 12.6% 12.6% 182 13.3% 13.3%
Rest of World 241 36.0% 28.5% 29 39.6% 31.1%
Visa Inc. 489 23.0% 19.9% 211 16.3% 15.5%
Payments Cash
Transac Cash Growth Growth Transac Acc
tions Volume (Nom (Cons tions ounts Cards
(mill ($bill inal tant (mill (mill (mill
ions) ions) USD) USD) ions) ions) ions)
All Visa Credit & Debit
Asia Pacific 1,796 74 32.8% 25.1% 417 348 427
Canada 362 6 33.0% 22.5% 9 23 31
CEMEA 211 85 43.8% 39.0% 545 125 136
LAC 1,004 83 21.9% 14.6% 691 267 289
US 7,032 101 5.6% 5.6% 730 442 643
Visa Inc. 10,404 349 23.3% 19.0% 2,392 1,205 1,527
Visa Credit Programs
US 2,314 35 -2.9% -2.9% 34 254 358
Rest of World 2,654 37 16.4% 12.0% 128 353 410
Visa Inc. 4,968 71 6.2% 4.2% 162 607 769
Visa Debit Programs
US 4,718 67 10.7% 10.7% 696 188 285
Rest of World 718 211 35.5% 28.2% 1,534 409 473
Visa Inc. 5,437 278 28.6% 23.5% 2,230 597 758
For the 3 Months Ended June 30, 2007
Total Growth Growth Payments Growth
Volume (Nom (Cons Volume Growth (Cons
($bill inal tant ($bill (Nominal tant
ions) USD) USD) ions) USD) USD)
All Visa Credit & Debit
Asia Pacific 201 20.6% 16.3% 132 19.9% 16.7%
Canada 45 18.2% 12.0% 40 17.4% 11.3%
CEMEA 90 38.7% 37.0% 14 32.4% 32.8%
LAC 114 32.5% 19.1% 35 42.2% 28.2%
US 483 9.5% 9.5% 385 10.4% 10.4%
Visa Inc. 934 17.1% 14.4% 606 14.7% 13.1%
Visa Credit Programs
US 235 6.4% 6.4% 203 8.3% 8.3%
Rest of World 228 19.8% 15.8% 194 21.2% 16.8%
Visa Inc. 464 12.6% 10.8% 396 14.3% 12.3%
Visa Debit Programs
US 248 12.7% 12.7% 183 12.7% 12.7%
Rest of World 222 34.2% 25.1% 27 39.7% 29.9%
Visa Inc. 470 21.9% 18.2% 210 15.6% 14.6%
Payments Cash
Transac Cash Growth Growth Transac Acc
tions Volume (Nom (Cons tions ounts Cards
(mill ($bill inal tant (mill (mill (mill
ions) ions) USD) USD) ions) ions) ions)
All Visa Credit & Debit
Asia Pacific 1,708 69 21.9% 15.5% 373 336 412
Canada 352 5 24.5% 18.0% 9 22 30
CEMEA 197 76 39.9% 37.8% 508 121 124
LAC 945 79 28.6% 15.4% 669 257 281
US 6,902 98 6.4% 6.4% 721 420 617
Visa Inc. 10,103 327 21.8% 16.9% 2,280 1,156 1,465
Visa Credit Programs
US 2,251 33 -4.3% -4.3% 32 246 345
Rest of World 2,519 35 12.6% 10.2% 120 339 394
Visa Inc. 4,770 67 3.7% 2.6% 152 584 739
Visa Debit Programs
US 4,651 65 12.6% 12.6% 689 174 272
Rest of World 682 195 33.5% 24.5% 1,439 397 454
Visa Inc. 5,333 260 27.5% 21.3% 2,128 571 726
For the 3 Months Ended March 31, 2007
Total Growth Growth Payments Growth
Volume (Nom (Cons Volume Growth (Cons
($bill inal tant ($bill (Nominal tant
ions) USD) USD) ions) USD) USD)
All Visa Credit & Debit
Asia Pacific 189 23.1% 18.8% 126 20.8% 17.0%
Canada 36 10.3% 11.8% 31 9.2% 10.7%
CEMEA 81 44.8% 44.2% 12 35.3% 41.0%
LAC 104 19.4% 19.6% 31 25.9% 25.4%
US 440 9.1% 9.1% 347 8.9% 8.9%
Visa Inc. 849 16.1% 15.4% 548 12.9% 12.4%
Visa Credit Programs
US 214 7.8% 7.8% 181 8.0% 8.0%
Rest of World 208 17.1% 15.4% 177 18.5% 16.6%
Visa Inc. 423 12.2% 11.6% 357 13.0% 12.3%
Visa Debit Programs
US 226 10.4% 10.4% 166 10.0% 10.0%
Rest of World 201 33.4% 30.5% 24 35.3% 32.6%
Visa Inc. 427 20.1% 19.4% 190 12.7% 12.7%
Payments Cash
Transac Cash Growth Growth Transac Acc
tions Volume (Nom (Cons tions ounts Cards
(mill ($bill inal tant (mill (mill (mill
ions) ions) USD) USD) ions) ions) ions)
All Visa Credit & Debit
Asia Pacific 1,599 63 28.1% 22.6% 382 321 397
Canada 309 4 19.1% 20.7% 9 22 30
CEMEA 183 68 46.6% 44.8% 477 117 122
LAC 904 72 16.8% 17.2% 658 251 271
US 6,259 94 9.8% 9.8% 698 412 607
Visa Inc. 9,254 302 22.3% 21.1% 2,224 1,124 1,426
Visa Credit Programs
US 2,021 33 7.0% 7.0% 30 243 341
Rest of World 2,343 32 9.8% 9.3% 105 322 375
Visa Inc. 4,364 65 8.3% 8.1% 135 565 716
Visa Debit Programs
US 4,238 60 11.4% 11.4% 668 170 266
Rest of World 652 176 33.1% 30.2% 1,421 389 444
Visa Inc. 4,889 237 26.8% 25.1% 2,089 559 710
For the 3 Months Ended December 31, 2006
Total Growth Growth Payments Growth
Volume (Nom (Cons Volume Growth (Cons
($bill inal tant ($bill (Nominal tant
ions) USD) USD) ions) USD) USD)
All Visa Credit & Debit
Asia Pacific 188 21.9% 15.9% 127 21.1% 15.8%
Canada 40 11.1% 11.3% 35 10.1% 10.3%
CEMEA 80 43.0% 40.7% 12 32.2% 34.2%
LAC 109 22.2% 17.5% 33 30.4% 25.3%
US 462 8.3% 8.3% 367 8.1% 8.1%
Visa Inc. 878 15.4% 13.6% 574 12.4% 11.3%
Visa Credit Programs
US 232 7.7% 7.7% 199 7.7% 7.7%
Rest of World 214 17.9% 14.1% 182 19.2% 15.4%
Visa Inc. 447 12.4% 10.8% 381 12.9% 11.4%
Visa Debit Programs
US 230 8.9% 8.9% 169 8.5% 8.5%
Rest of World 202 32.0% 26.3% 25 36.0% 30.6%
Visa Inc. 431 18.6% 16.7% 194 11.4% 11.1%
Payments Cash
Transac Cash Growth Growth Transac Acc
tions Volume (Nom (Cons tions ounts Cards
(mill ($bill inal tant (mill (mill (mill
ions) ions) USD) USD) ions) ions) ions)
All Visa Credit & Debit
Asia Pacific 1,600 61 23.7% 16.0% 381 308 381
Canada 344 4 19.8% 20.0% 9 22 30
CEMEA 175 68 45.1% 41.9% 470 104 112
LAC 911 77 19.0% 14.5% 687 241 262
US 6,554 95 9.2% 9.2% 698 406 604
Visa Inc. 9,583 304 21.4% 18.2% 2,245 1,081 1,388
Visa Credit Programs
US 2,281 34 7.7% 7.7% 32 240 345
Rest of World 2,371 32 11.4% 7.2% 107 314 363
Visa Inc. 4,651 66 9.5% 7.5% 140 554 709
Visa Debit Programs
US 4,274 61 10.0% 10.0% 666 166 259
Rest of World 658 177 31.4% 25.7% 1,440 361 421
Visa Inc. 4,932 238 25.2% 21.5% 2,105 527 680
For the 3 Months Ended September 30, 2006
Total Growth Growth Payments Growth
Volume (Nom (Cons Volume Growth (Cons
($bill inal tant ($bill (Nominal tant
ions) USD) USD) ions) USD) USD)
All Visa Credit & Debit
Asia Pacific 171 16.8% 15.0% 115 17.5% 16.3%
Canada 38 17.1% 11.0% 34 16.4% 10.4%
CEMEA 70 38.9% 40.1% 11 29.6% 35.2%
LAC 95 20.7% 18.1% 27 27.9% 25.0%
US 446 11.6% 11.6% 350 11.1% 11.1%
Visa Inc. 821 15.9% 15.1% 538 13.9% 13.3%
Visa Credit Programs
US 225 9.6% 9.6% 190 9.0% 9.0%
Rest of World 198 16.6% 14.4% 167 17.9% 15.8%
Visa Inc. 423 12.8% 11.9% 356 13.0% 12.2%
Visa Debit Programs
US 221 13.8% 13.8% 161 13.7% 13.7%
Rest of World 177 27.4% 25.2% 21 32.2% 30.7%
Visa Inc. 398 19.5% 18.7% 182 15.6% 15.6%
Payments Cash
Transac Cash Growth Growth Transac Acc
tions Volume (Nom (Cons tions ounts Cards
(mill ($bill inal tant (mill (mill (mill
ions) ions) USD) USD) ions) ions) ions)
All Visa Credit & Debit
Asia Pacific 1,508 56 15.4% 12.3% 360 298 367
Canada 330 4 23.4% 17.0% 9 22 29
CEMEA 157 59 40.8% 41.1% 424 94 104
LAC 810 68 18.0% 15.5% 643 228 248
US 6,229 96 13.6% 13.6% 733 398 599
Visa Inc. 9,035 283 20.0% 18.7% 2,169 1,041 1,347
Visa Credit Programs
US 2,149 36 13.1% 13.1% 34 242 351
Rest of World 2,243 31 10.0% 7.5% 102 297 346
Visa Inc. 4,392 67 11.6% 10.3% 136 539 696
Visa Debit Programs
US 4,080 60 14.0% 14.0% 699 156 249
Rest of World 563 156 26.8% 24.5% 1,334 346 402
Visa Inc. 4,643 216 22.9% 21.5% 2,033 502 651
For the 3 Months Ended June 30, 2006
Total Growth Growth Payments Growth
Volume (Nom (Cons Volume Growth (Cons
($bill inal tant ($bill (Nominal tant
ions) USD) USD) ions) USD) USD)
All Visa Credit & Debit
Asia Pacific 167 17.9% 18.1% 110 15.9% 16.6%
Canada 38 23.5% 12.3% 34 23.0% 11.8%
CEMEA 65 43.5% 42.2% 10 35.5% 35.9%
LAC 86 21.4% 20.9% 25 29.3% 27.9%
US 441 14.8% 14.8% 349 15.7% 15.7%
Visa Inc. 797 18.5% 17.9% 528 17.1% 16.5%
Visa Credit Programs
US 221 11.5% 11.5% 187 12.1% 12.1%
Rest of World 191 16.7% 14.9% 160 18.4% 16.5%
Visa Inc. 412 13.8% 13.0% 347 14.9% 14.1%
Visa Debit Programs
US 220 18.3% 18.3% 162 20.2% 20.2%
Rest of World 165 32.1% 30.5% 19 33.9% 32.7%
Visa Inc. 386 23.8% 23.4% 182 21.5% 21.5%
Payments Cash
Transac Cash Growth Growth Transac Acc
tions Volume (Nom (Cons tions ounts Cards
(mill ($bill inal tant (mill (mill (mill
ions) ions) USD) USD) ions) ions) ions)
All Visa Credit & Debit
Asia Pacific 1,416 56 22.0% 20.9% 353 287 354
Canada 322 4 27.4% 15.8% 9 21 28
CEMEA 147 55 45.2% 43.5% 407 86 95
LAC 769 61 18.5% 18.3% 620 219 236
US 6,157 92 11.4% 11.4% 710 390 611
Visa Inc. 8,811 269 21.2% 20.5% 2,098 1,003 1,324
Visa Credit Programs
US 2,091 34 8.3% 8.3% 32 236 344
Rest of World 2,126 31 8.5% 6.8% 97 283 329
Visa Inc. 4,216 65 8.4% 7.6% 129 519 672
Visa Debit Programs
US 4,067 58 13.3% 13.3% 677 153 268
Rest of World 528 146 31.9% 30.2% 1,291 330 384
Visa Inc. 4,595 204 26.0% 25.1% 1,969 484 652
For the 3 Months Ended March 31, 2006
Total Growth Growth Payments Growth
Volume (Nom (Cons Volume Growth (Cons
($bill inal tant ($bill (Nominal tant
ions) USD) USD) ions) USD) USD)
All Visa Credit & Debit
Asia Pacific 154 12.2% 15.8% 104 11.9% 16.1%
Canada 32 18.0% 13.5% 29 18.4% 13.8%
CEMEA 56 38.8% 42.3% 9 28.8% 32.1%
LAC 87 37.6% 21.0% 25 45.7% 28.3%
US 403 16.1% 16.1% 318 17.6% 17.6%
Visa Inc. 732 19.0% 18.1% 485 17.7% 17.7%
Visa Credit Programs
US 199 11.7% 11.7% 167 12.7% 12.7%
Rest of World 178 14.1% 15.0% 149 16.0% 16.7%
Visa Inc. 376 12.8% 13.3% 316 14.2% 14.6%
Visa Debit Programs
US 205 20.8% 20.8% 151 23.6% 23.6%
Rest of World 151 34.8% 27.7% 18 37.2% 30.1%
Visa Inc. 355 26.4% 23.8% 169 24.9% 24.3%
Payments Cash
Transac Cash Growth Growth Transac Acc
tions Volume (Nom (Cons tions ounts Cards
(mill ($bill inal tant (mill (mill (mill
ions) ions) USD) USD) ions) ions) ions)
All Visa Credit & Debit
Asia Pacific 1,302 49 12.7% 15.2% 327 276 341
Canada 282 4 15.4% 10.9% 9 21 27
CEMEA 126 47 41.0% 44.3% 357 82 89
LAC 742 62 34.5% 18.3% 600 204 225
US 5,686 85 11.0% 11.0% 662 383 606
Visa Inc. 8,139 247 21.7% 18.9% 1,955 966 1,288
Visa Credit Programs
US 1,884 31 6.7% 6.7% 30 232 338
Rest of World 1,962 29 5.3% 6.5% 88 273 315
Visa Inc. 3,847 60 6.1% 6.6% 118 505 653
Visa Debit Programs
US 3,801 54 13.6% 13.6% 632 151 268
Rest of World 491 133 34.5% 27.4% 1,205 311 367
Visa Inc. 4,292 187 27.7% 23.3% 1,837 462 635
For the 12 Months Ended December 31, 2007
Total Growth Growth Payments Growth
Volume (Nom (Cons Volume Growth (Cons
($bill inal tant ($bill (Nominal tant
ions) USD) USD) ions) USD) USD)
All Visa Credit & Debit
Asia Pacific 846 24.6% 19.5% 556 21.9% 17.6%
Canada 179 20.6% 12.6% 158 19.6% 11.7%
CEMEA 386 42.6% 39.4% 59 38.1% 37.2%
LAC 485 28.3% 19.8% 152 38.1% 28.5%
US 1,927 10.0% 10.0% 1,532 10.7% 10.7%
Visa Inc. 3,822 18.4% 15.9% 2,457 15.6% 13.8%
Visa Credit Programs
US 943 7.5% 7.5% 807 8.7% 8.7%
Rest of World 951 21.8% 16.9% 808 22.9% 17.7%
Visa Inc. 1,894 14.2% 12.1% 1,615 15.4% 13.0%
Visa Debit Programs
US 984 12.4% 12.4% 725 12.9% 12.9%
Rest of World 944 35.9% 28.5% 117 39.9% 31.7%
Visa Inc. 1,928 22.8% 19.8% 842 16.0% 15.3%
Payments Cash
Transac Cash Growth Growth Transac Acc
tions Volume (Nom (Cons tions ounts Cards
(mill ($bill inal tant (mill (mill (mill
ions) ions) USD) USD) ions) ions) ions)
All Visa Credit & Debit
Asia Pacific 7,034 289 30.1% 23.4% 1,624 368 446
Canada 1,404 21 28.6% 20.3% 37 23 31
CEMEA 827 327 43.4% 39.8% 2,120 139 147
LAC 3,984 333 24.2% 16.2% 2,775 284 307
US 27,605 395 7.3% 7.3% 2,865 458 664
Visa Inc. 40,854 1,365 23.8% 19.8% 9,421 1,272 1,594
Visa Credit Programs
US 9,048 136 1.2% 1.2% 129 259 365
Rest of World 10,379 143 15.7% 12.6% 490 372 431
Visa Inc. 19,427 279 8.1% 6.8% 619 631 796
Visa Debit Programs
US 18,557 259 10.9% 10.9% 2,737 199 299
Rest of World 2,869 827 35.4% 28.1% 6,066 442 500
Visa Inc. 21,426 1,086 28.6% 23.6% 8,802 641 798
For the 12 Months Ended December 31, 2006
Total Growth Growth Payments Growth
Volume (Nom (Cons Volume Growth (Cons
($bill inal tant ($bill (Nominal tant
ions) USD) USD) ions) USD) USD)
All Visa Credit & Debit
Asia Pacific 679 17.3% 16.1% 457 16.7% 16.2%
Canada 148 17.1% 12.0% 132 16.6% 11.5%
CEMEA 271 41.2% 41.2% 43 31.5% 34.4%
LAC 378 24.8% 19.2% 110 32.7% 26.5%
US 1,753 12.5% 12.5% 1,385 12.8% 12.8%
Visa Inc. 3,228 17.1% 16.1% 2,126 15.1% 14.5%
Visa Credit Programs
US 877 10.0% 10.0% 742 10.2% 10.2%
Rest of World 781 16.4% 14.6% 658 17.9% 16.1%
Visa Inc. 1,658 12.9% 12.2% 1,400 13.7% 13.0%
Visa Debit Programs
US 876 15.1% 15.1% 642 16.0% 16.0%
Rest of World 695 31.4% 27.3% 84 34.8% 31.0%
Visa Inc. 1,570 21.8% 20.4% 726 17.9% 17.7%
Payments Cash
Transac Cash Growth Growth Transac Acc
tions Volume (Nom (Cons tions ounts Cards
(mill ($bill inal tant (mill (mill (mill
ions) ions) USD) USD) ions) ions) ions)
All Visa Credit & Debit
Asia Pacific 5,827 222 18.6% 16.0% 1,421 308 381
Canada 1,278 16 21.5% 16.0% 36 22 30
CEMEA 605 228 43.1% 42.6% 1,657 104 112
LAC 3,233 268 21.9% 16.5% 2,550 241 262
US 24,626 368 11.3% 11.3% 2,803 406 604
Visa Inc. 35,569 1,102 21.1% 19.1% 8,468 1,081 1,388
Visa Credit Programs
US 8,405 135 9.0% 9.0% 129 240 345
Rest of World 8,702 123 8.9% 7.0% 394 314 363
Visa Inc. 17,107 258 8.9% 8.0% 523 554 709
Visa Debit Programs
US 16,221 233 12.7% 12.7% 2,674 166 259
Rest of World 2,240 611 31.0% 26.8% 5,270 361 421
Visa Inc. 18,462 844 25.3% 22.8% 7,945 527 680
For the 12 Months Ended December 31, 2005
Total Payments
Volume Growth Growth Volume Growth Growth
($bill (Nominal (Constant ($bill (Nominal (Constant
ions) USD) USD) ions) USD) USD)
All Visa Credit & Debit
Asia Pacific 579 21.3% 15.9% 391 19.8% 14.3%
Canada 126 21.3% 10.8% 113 21.2% 10.8%
CEMEA 192 17.3% 11.4% 33 15.7% 9.6%
LAC 303 34.4% 21.4% 83 42.6% 29.3%
US 1,558 16.1% 16.1% 1,227 17.5% 17.5%
Visa Inc. 2,757 19.3% 16.0% 1,847 19.1% 16.7%
Visa Credit Programs
US 797 10.6% 10.6% 674 10.5% 10.5%
Rest of World 671 18.4% 11.5% 558 21.0% 14.0%
Visa Inc. 1,468 14.0% 11.0% 1,231 15.0% 12.2%
Visa Debit Programs
US 761 22.5% 22.5% 554 27.3% 27.3%
Rest of World 529 31.0% 22.1% 62 37.5% 27.2%
Visa Inc. 1,289 25.8% 22.3% 616 28.3% 27.3%
Cash
Payments Cash Transac
Transac Volume Growth Growth tions Accounts Cards
tions ($bil (Nominal (Constant (mill (mill (mill
(millions) lions) USD) USD) ions) ions) ions)
All Visa Credit
& Debit
Asia Pacific 4,713 188 24.7% 19.3% 1,190 266 328
Canada 1,176 13 21.7% 11.0% 36 21 27
CEMEA 432 159 17.6% 11.8% 1,234 75 83
LAC 2,625 220 31.5% 18.7% 2,343 194 214
US 21,749 331 11.0% 11.0% 2,588 373 584
Visa Inc. 30,695 911 19.5% 14.8% 7,392 929 1,236
Visa Credit
Programs
US 7,757 123 10.8% 10.8% 126 228 327
Rest of World 7,254 113 7.3% 0.2% 339 264 304
Visa Inc. 15,011 237 9.1% 5.3% 465 492 631
Visa Debit
Programs
US 13,992 207 11.2% 11.2% 2,462 144 257
Rest of World 1,692 467 30.2% 21.5% 4,465 293 348
Visa Inc. 15,684 674 23.7% 18.3% 6,927 437 605
Footnote
The preceding tables present Payments Volume, Cash Volume, Total Volume, 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 periods 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. 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 period-over-period 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. Processed Transactions
The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa's networks.
Processed
Transactions Year-over-Year
Period (millions) Growth
3 Months Ended
Jun 30, 2008 9,473 13%
Mar 31, 2008 8,800 15%
Dec 31, 2007 9,094 13%
Sep 30, 2007 8,645 12%
Jun 30, 2007 8,411 13%
Mar 31, 2007 7,645 12%
Dec 31, 2006 8,018 11%
Sep 30, 2006 7,722 NA
Jun 30, 2006 7,441 NA
Mar 31, 2006 6,828 NA
Dec 31, 2005 7,212 NA
12 Months Ended
Sep 30, 2007 32,720 12%
Sep 30, 2006 29,202 NA
SOURCE Visa Inc.
07/30/2008
CONTACT: Investor Relations, Jack Carsky or Victoria Hyde-Dunn,
+1-415-932-2213, ir@visa.com, or Media Relations, Paul Cohen or Sandra Chu,
+1-415-932-2564, globalmedia@visa.com
Web site: http://investor.visa.com
http://www.corporate.visa.com