Visa Inc. posts net income of $1.1 billion

Visa Inc. has announced financial results for the company's fiscal third quarter 2012 ended June 30, 2012. On a GAAP basis, the company reported a net loss of $1.8 billion, inclusive of a litigation provision of $4.1 billion, related to the previously announced settlement agreement in the Multi-District Litigation case. Visa's share will be paid from the previously funded litigation escrow account established pursuant to the company's Retrospective Responsibility Plan.
Excluding the litigation provision of $4.1 billion and related tax benefit, adjusted net income for the quarter was $1.1 billion, or $1.56 per diluted class A common share, an increase of 25 percent over the prior year on an adjusted basis. The adjusted weighted-average number of diluted class A common shares outstanding during the third quarter was 675 million.
The company's adjusted quarterly net income per share of class A common stock is a non-GAAP financial measure that is reconciled to its most directly comparable GAAP measure in the accompanying financial tables.
GAAP net operating revenue in the fiscal third quarter of 2012 was $2.6 billion, an increase of 10 percent over the prior year and driven by strong double-digit growth in service revenues, data processing revenues and international transaction revenues.
There was no significant impact on current quarter results related to the strengthening or weakening of the US dollar over the prior year.
“Visa once again reported solid global growth in payments volume, cross border transactions and processed transactions outside the US, executing on our strategy of growing the electronification of payments worldwide.
“We are pleased that we were able to come to a resolution in the merchant litigation which was acceptable to most parties while ensuring the long-term health of the US payments industry,” said Joseph Saunders, chairman and chief executive officer of Visa Inc.