Visa Inc. (NYSE:V) Q2 2019 Earnings Conference Call Transcript

Apr 24, 2019 • 05:00 pm ET

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Visa Inc. (NYSE:V) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to the Visa's Fiscal Second Quarter 2019 Earnings Conference Call. All participants are in a listen-only mode until the question-and-answer session of today's conference. Today's conference is being recorded. If you have any objections, you may disconnect at this time.

I would now like to turn the conference over to your host, Mr. Mike Milotich, Senior Vice President of Investor Relations. Mr. Milotich, you may begin.

Executive
Mike Milotich

Thanks, Jordan. Good afternoon everyone, and welcome to Visa's Fiscal Second Quarter 2019 Earnings Call. Joining us today are Al Kelly, Visa's Chief Executive Officer, and Vasant Prabhu, Visa's Chief Financial Officer. This call is being webcast on the Investor Relations section of our website at www.investor.visa.com. A replay will be archived on our site for 30 days. A slide deck containing financial and statistical highlights has been posted on our IR website.

Let me also remind you that this presentation includes forward-looking statements. These statements are not guarantees of future performance and our actual results could differ materially as a result of many factors. Additional information concerning those factors is available on our most recent reports on Forms 10-K and 10-Q, which you can find on the SEC's website, and the Investor Relations section of our website. For historical non-GAAP financial information disclosed in this call, the related GAAP measures and reconciliations are available in today's earnings release.

And with that, let me turn the call over to Al.

Executive
Alfred F. Kelly

Mike, thank you and good afternoon everyone, and thanks for joining us today. First, a few highlights related to our financial results, as Vasant will go into much more detail later. The Company continued to perform well in the second fiscal quarter with approximately 47 billion transactions on the Visa network, driving $2.8 trillion in total volume.

Revenue growth was over 8%, slowing versus last quarter as expected due to 1.5 points of FX drag, lapping high currency volatility last year and slower cross-border growth. This was in line with our expectations. Payment volume growth was 8% on a constant-dollar basis. However, growth was 10%, excluding China, and the impact of processing days and US credit conversions. Growth in the US, the UK, and China drove most of the growth difference versus last quarter. As you saw in the numbers reported by the US banks over the last two weeks, processing days and the shift of Easter impacted the numbers. That said volume growth in many markets around the world was still quite attractive. Growth in our CEMEA region was 22%, and Latin America grew 14%. Also sub-regions like India, Southeast Asia, Central Europe and Eastern Europe, all were growing at mid-teens or better. Processed transaction growth was 11%, consistent with last quarter. Growth remained strong in our large tap to pay markets such as Australia, Canada and the UK.

Cross-border growth on a constant dollar basis was 4%, slowing 3 percentage points from last quarter. Adjusting for the e-commerce platform reorienting acquiring within Europe for cross-border to domestic and the cryptocurrency purchases last