Visa (V) Q4-2008 September 2008 Earnings Call Notes
-Revenue $1.7B, 58c EPS vs. $1.68B, 56c est.
-2009 Guidance: revenue on low end of 11-15% range, operating margin mid to high 40s, EPS 20% or more, Capex $300-350M
-Q4 payment volume growth 15% (19% last quarter), total cards 12% (14%), payment transactions 14% (15%), processed transactions 11% (13%), service fees 8% (13%), data processing fees 18% (20%), international transaction fees 45% (44%)
-Debit is now 53% of payments
-All disputes with major competitors now resolved
-Further slowdown in U.S. (10%) and cross-border volumes. Debit low-to-mid double digits. Credit got weaker through September
-Additional moderation from September to October. U.S. credit volume +1-2% in September turned NEGATIVE first few weeks of October. Debit still low double-digits
-Cross border volumes high single digits at end of September from double digits earlier
-Q3-Q4 next year might have single digit growth
-FCF will be higher than $1.7B
-Seeing shift to non-discretionary purchases. More credit worthy are driving purchases
-53% of debit spend is non-discretionary. >40% overall. Last recession it was 30%