Jan 26 (Reuters) – Visa Inc’s (V.N) revenue growth continued to wind again to pre-pandemic ranges within the first quarter as the post-lockdown journey craze ebbed and shopper spending slowed in a tough economy.
The world’s largest funds processor nonetheless surpassed Wall Street targets for revenue, sending its shares up 1.4% to $227.82 in after-hours buying and selling on Thursday.
Cross-border volumes – a key measure that tracks spending on playing cards past the nation of subject – jumped 22% year-over-year on a relentless greenback foundation as a stronger dollar boosted out-of-U.S. journey by softening the hit from inflation and rising rates of interest.
Total fee volumes rose 7%.
The growth was, nonetheless, far decrease than a 40% surge in cross-border volumes within the first quarter of 2021 and a 20% soar in funds volumes.
“Year-over-year growth charges are going to average as you get previous the large (pandemic) restoration,” Visa’s chief monetary officer, Vasant Prabhu, instructed Reuters.
Visa’s revenue recorded its slowest tempo of growth in seven quarters, gaining 12% to $7.9 billion.
The agency’s exit from Russia will influence reported funds quantity growth charges within the second quarter, Prabhu mentioned on a post-earnings name.
Earlier within the day, rival Mastercard Inc (MA.N) forecast current-quarter revenue growth under expectations as pent-up demand for journey was seen slowing going ahead.
“Growth within the journey sector could also be more durable to come back by in 2023 as a few of the pent-up demand that stacked up through the pandemic and was unleashed in 2022 is fading,” mentioned Ted Rossman, senior trade analyst at Bankrate.com.
Visa reported a revenue of $2.18 a share, comfortably above the $2.01 estimated by analysts, in accordance with Refinitiv.
Reporting by Mehnaz Yasmin in Bengaluru; Editing by Devika Syamnath
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