Tag Archives: Business/Consumer Services

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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British GDP rose in May, leaving the economy almost a fifth below the pre-locking level | Instant News


A shop in the Churchill Square shopping center welcomes its customers back on June 15, 2020 in Brighton, England.

Mike Hewitt / Getty Images

The UK economy rose 1.8% in May, only a slight rebound after the historic fall caused by the closure of the coronavirus pandemic.

The Office for National Statistics said the May increase came after a 20.3% decline in April and a 6.9% contraction in March. GDP fell by 19.1% in the three months to May, due to government restrictions on movement to dramatically reduce economic activity, said the ONS.

The UK economy slipped 24.5% between February and May. Construction fell 38.8% during that time span, manufacturing fell 22.3%, service output fell 24.4%.

“Home manufacturing and construction are showing signs of recovery when some businesses see staff returning to work. Even so, the economy is still a quarter smaller in May than in February, before the full impact of the pandemic struck, “said Jonathan Athow, national statistics representative for economic statistics.

Andrew Sentance, a former Bank of England official, tweeted that warm growth was not surprising.

Pound
GBPUSD,
-0.11%

traded at $ 1.2544 vs. $ 1.2553 on Monday.

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