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Life takes Visa, esp within the United States | Earnings Insight

While Mastercard enjoyed $3.1 tln in transactions in 2011 and $1.1 tln was spent on its debit cards, Visa grew 20% over 2010 to grow to $6tln in 2011, its US debit programs alone claiming a 25% share at $1.53 tln while its global programs took its share of Master and Visa debit programs to $3.5 tln out of $4.6 tln for 2011, leaving Mastercard with less than 24% share.

Visa Credit programs also scored near to the $1 ‘T’ mark in the US and global Credit card Txn volumes hit $2.5tln giving it a 110% markup on “Everything”

The Universe of card business volumes of course also includes the $2.4 tln Union pay ($1.6 tln in 2010, estimated ) out of China. On revenues, Visa’s lead is much smaller, scoring $2.2 bln in Net revenues for the quarter, pying out 15% of its gross receipts, and mastercard reducing its transaction volue (GDV) lead in Q4

In number of transactions, Mastercard scores a 33% share with 7.7 bln transactions, visa doing 20 bln transaction sin the quarter out of 77 bln transaction incl 13.5 Cash transactions and the 64 bln payment transactions for 2011

Visa has 1.9 bln cards issued as of September 30, 2011. Visa ended with a more than 25% share of its own business in Asia, US growing at half the rate and a 40% share including the holiday Season. LatAm business neared a $1T for 2011 and is growing apace with Asia

Visa also enjoys a more distinct loyalty driven by its preeminence in the Debit program, with its own split 55-45 in favor of Debit programs. The split was 60-40 in 2010

Visa marketing spend exceeds $600 mln a year. Mastercard has done a good job catching up on Market Cap last year coming in at $50 bln yesterday, compared to $74 bln for Visa. Visa has increased dividend payment by 47% and full year results came to $4.99 per share at $3.5 bln with $1 bln profits in Q4. The company has provided adequately for litigation reserves. Its full year revenues of $9.2 bln grew at 14% , 12% in constant currency terms. Quarterly revenues grew from $880 mln or $1.27 per share to $1 bln or $1.49 sequentially. Company used cash to fund buyback of 16 mln shares and catch up with Mastercard in the exchanges, a better chance for it to make up the lost lead in 2011

Quarterly revenues are up 4% sequentially and as the company reported December as Q1 its YOY from last Q1 was more than 10%

Q1 operating margins improved 3pp to 64% while the year ended September reported an OP Margin of 57% with $750 mln in International Transactions revenues. Marketing spend for Q1 is $190 mln, Operating Expenses increasing 36% sequentially to $1.36 bln

 

 

 

 

A Visa Game Card.

Image via Wikipedia

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2 comments on “Life takes Visa, esp within the United States | Earnings Insight

  1. Pingback: Saks gets a shopping visa | The Banking and Strategy Initiative

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This entry was posted on February 8, 2012 by in Financial Markets and tagged , , , , , , , , .

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