Visa profit falls as pandemic crimps travel spending

Visa Inc reported a 4% fall in quarterly profit on Thursday, hurt by lower cross-border spending volumes as the COVID-19 pandemic hammered the global travel industry. Net income fell to $3.13 billion, or $1.42 per Class A share, for the first quarter ended Dec. 31, from $3.27 billion, or $1.46 per Class A share, a year earlier.

Visa Inc reported a 4% fall in quarterly profit on Thursday, hurt by lower cross-border spending volumes as the COVID-19 pandemic hammered the global travel industry.

Net income fell to $3.13 billion, or $1.42 per Class A share, for the first quarter ended Dec. 31, from $3.27 billion, or $1.46 per Class A share, a year earlier. Analysts on average had expected a profit of $1.28 per share, according to IBES data from Refinitiv. It was not immediately clear whether the estimates were comparable.

The company's net revenue fell 6% to $5.69 billion. The payments processor, however, said total spending rose 5% on a constant dollar basis even as the coronavirus-induced economic downturn prompted massive layoffs.

The number of processed transactions rose 4% from a year earlier. Cross-border volume slumped 21% as the pandemic continued to hurt travel demand.