Visa Inc. (NYSE:V) Q1 2015 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 05:00 pm ET

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Visa Inc. (NYSE:V) Q1 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the Visa Inc's Fiscal Q1 2015 Earnings Conference Call. [Operator Instructions]. Today's conference is being recorded. If you have any objections, you may disconnect at this time.

And now to turn the conference over to your host, Mr. Jack Carsky, Head of Global Investor Relations. Mr. Carsky, you may begin.

Executive
John R. Carsky

Thanks, David. Good afternoon, everyone, and welcome to Visa Inc.'s fiscal first quarter earnings conference call. With us today are Charlie Scharf, Visa's Chief Executive Officer; and Byron Pollitt, Visa's Chief Financial Officer.

This call is currently being webcast over the Internet and is accessible on the Investor Relations section of our Website at www.investor.visa.com. A replay of the webcast will also be archived on our site for 30 days. A PowerPoint deck containing financial and statistical highlights of today's commentary was posted to our Website prior to this call.

Let me also remind you that this presentation may include forward-looking statements. These statements aren't guarantees of future performance and our actual results could materially differ as the result of a variety of factors. Additional information concerning those factors is available in our most recent reports on Forms 10-K and Q, which you can find on the SEC's Website and the Investor Relations section of ours.

For historical non-GAAP or pro forma related financial information disclosed in this call, the related GAAP measures and other information required by Reg G of the SEC are available in the financial and statistical summary accompanying today's press release. This release can also be accessed through the IR section of our Website.

And with that, I'll now turn the call over to Byron.

Executive
Byron H. Pollitt

Thanks, Jack. Let me begin with my usual call-outs and observations First, as you can see from the earnings press release, we announced that our board of directors has authorized a four-for-one stock split. Each class A stockholder of record at the close of business on February 13th, 2015 will receive three additional shares for every share held on the Record Date in the form of a 100% stock dividend, and trading will begin on a split-adjusted basis on March 19th, 2015. Due to the structure of the various classes, holders of class B and C shares will not receive a stock dividend. Instead, the conversion rate for the class B and C shares will be adjusted after the stock split, so that the class B and C stockholders will retain the same relative ownership percentages that they had prior to the stock split.

Second call-out involves FX. Since our last earnings call, the U.S. dollar has continued to strengthen against most of our key currencies. Based on the December 31 forward exchange rate, we project an incremental 50 basis points negative impact on our full-y ear revenue growth.

Third call-out relates to cross-border activity. Cross-border volumes softened 2 percentage points in the December quarter to 8% growth in constant dollars and a further 1 percentage point to 7% through the 21st of January. Once again, FX is an important