Business

Visa profit falls 23% as payment volumes plunge

FILE PHOTO: A Visa logo is seen during a news conference at the MAXXI National Museum in Rome, Italy May 17, 2016 REUTERS/Alessandro Bianchi

(Reuters) – Visa Inc V.N reported a 23% drop in quarterly profit on Wednesday, as spending volumes at the payment processor sank due to the COVID-19 pandemic.

Net income fell to $2.4 billion, or $1.07 per Class A share, for the fourth quarter ended Sept. 30, from $3.03 billion, or $1.34 per Class A share, a year earlier. On an adjusted basis the company reported earnings of $1.06 per share.

Net revenue fell 17% to $4.8 billion as consumer spending was limited due to the health crisis, which has triggered the worst economic downturn in decades and prompted massive layoffs.

This is only the second time the company’s quarterly revenue declined year-over-year since it went public in 2008.

Analysts polled by Refinitiv had been expecting an 18.5% slide in revenue and earnings of $1.09 per share.

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