Tag Archives: bank credit

Visa exceeds revenue expectations, but travel category remains slow to return | Instant News

Visa Inc. beat third-quarter earnings and revenue guidance on Tuesday, but the company saw volume shrink as the COVID-19 crisis continued to dampen spending growth, especially in the travel category. V shares, -0.08% were down 2% in after-hours trading. The company posted net income of $ 2.4 billion, or $ 1.07 per share, compared to $ 3.1 billion, or $ 1.37 per share, in the previous year’s quarter. Adjusted earnings came in at $ 1.06 per share, while analysts polled by FactSet expected $ 1.03 per share. Visa revenue fell to $ 4.84 billion from $ 5.84 billion, while the FactSet consensus called for $ 4.82 billion. Payments volume fell 10% for the quarter, while cross-border volume declined 37%. Excluding intra-European transactions, cross-border volume fell by 47%. The company said in its earnings release that it has seen spending improve every month in the fiscal third quarter, as more countries begin to ease restrictions on economic activity linked to coronaviruses. Payments volume “significantly improved” in the United States as the quarter progressed, which gave card presentation spending a boost as e-commerce spending “remained consistently high” offsetting sales. travel expenses. Transactions processed fell 13% in the quarter on a global basis. Visa said this measure was delayed by volume growth “as the spending mix moved away from smaller transactions.” Cross-border volume “improved only marginally in the quarter” given the persistent restrictions on travel, a key source of this type of spending activity. Management is not providing a full year outlook given the uncertainties surrounding COVID-19. Visa kicked off a busy week in payments revenue, with PayPal Holdings Inc. PYPL, -0.96%, ready to post after Wednesday’s closing bell and Mastercard Inc. MA, -0.81% Thursday morning. Visa shares have gained 15% in the past three months as the Dow Jones Industrial Average DJIA, -0.77%, of which Visa is a component, rose about 9%. .

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Australia’s top casino marks a big layoff | Instant News

SYDNEY: Two of Australia’s top casino operators said on Thursday that they had laid off around 20,000 staff either temporarily or permanently and lined up about $ 760 million in bank credit to survive the coronavirus crisis that had destroyed the industry.

Crown Resorts Ltd., the largest in the country, said it was getting A $ 1.01 billion ($ 634.38 million) in debt funding and that 95% of its employees have now been laid off temporarily or permanently.

And separately, No. 2 Star Entertainment Group said it had added a 12-month credit limit of A $ 200 million, and reiterated that they had withdrawn around 8,500 staff.

Casino operators are one of the businesses hardest hit by Australian measures to curb the spread of the corona virus, which includes casino closures and severe restrictions on movement of people. New Zealand’s SkyCity Entertainment Group has also suspended most of its staff in Australia.

Layoffs occur when the Australian economy looks destined for the first recession in three decades because large swaths of the economy are forced to close to fight the plague.

Crown said on Thursday that it received A $ 560 million in new bilateral facilities and obtained a further facility of A $ 450 million to fund the construction of its project in Sydney.

“As a result of today’s announcement, Crown is well placed to withstand a long closing period,” Ken Barton, Crown’s chief executive, said in a statement. Crown also said it needed to employ 2,000 people when the Sydney project opened.

Star said the addition of the new facility over the past 12 months resulted in cash reserves and debt of around A $ 700 million.

Star shares jumped 8% in the afternoon, while Crown rose 0.4%. The broader market is down 1.5%.

Crown added on Thursday that salaries of senior management, including CEOs, and director fees would be cut by 20%.

However, Crown said it would pay interim dividends on Friday, unlike Star, which had previously said it would delay its payment.

Crown estimates the underlying operating cash costs will drop to between A $ 20 million to A $ 30 million per month because non-essential services at casinos in Melbourne and Perth are suspended.

The Australian Government has promised A $ 130 billion to subsidize the wages of around 6 million people.

But data on Thursday showed the unemployment rate was higher in March before widespread restrictions and closures began, and economists warned that the worst had not yet happened. – Reuters


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