Visa Inc. (V) has reported a 74.81 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $430 million in the quarter, compared with $1,707 million for the same period last year. On the other hand, adjusted net income for the quarter stood at $2,066 million, or $0.86 a share compared with $1,626 million or $0.68 a share, a year ago. Revenue during the quarter grew 23.47 percent to $4,477 million from $3,626 million in the previous year period. Total expenses were 37.28 percent of quarterly revenues, up from 32.87 percent for the same period last year. That has resulted in a contraction of 441 basis points in operating margin to 62.72 percent.
Operating income for the quarter was $2,808 million, compared with $2,434 million in the previous year period.
"In the face of geo-political uncertainty, Visa continues to execute well against our operating plan and strategic priorities, delivering sustained growth across nearly every part of our business," said Alfred F. Kelly, Jr., chief executive officer of Visa Inc. "Robust growth in payments volume, cross-border volume and processed transactions drove better than expected results. Looking ahead, we are continuing our efforts across the globe to electronify commerce and digitize economies to the benefit of consumers and societies alike."
For the financial year 2017, Visa Inc. projects revenue to grow in the range of 16 percent to 18 percent.
Operating cash flow improves marginally
Visa Inc. has generated cash of $2,904 million from operating activities during the first half, up 3.02 percent or $85 million, when compared with the last year period. Cash flow from investing activities was $2,268 million for the first half as against cash outgo of $1,846 million in the last year period.
The company has spent $4,243 million cash to carry out financing activities during the first six months as against cash inflow of $11,452 million in the last year period.
Cash and cash equivalents stood at $6,427 million as on Mar. 31, 2017, down 59.69 percent or $9,516 million from $15,943 million on Mar. 31, 2016.
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