Why Visa’s Net Operating Revenues Rose
Visa (V) has reported net operating revenues amounting to $10.8 billion from fiscal 1Q16 to fiscal 3Q16 and $13.5 billion from fiscal 1Q17 to fiscal 3Q17, reflecting an increase of 25%. This substantial rise was mainly due to a rise in the company’s international transaction revenues and data processing revenues. From fiscal 1Q16 to fiscal 3Q16, Visa managed to report international transaction revenues amounting to $3.16 billion. From fiscal 1Q17 to fiscal 3Q17, the company reported international transaction revenues of $4.52 billion, which represents an increase of 43%. This rise was mainly due to higher growth in nominal cross-border volume from fiscal 1Q17 to fiscal 3Q17.
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From fiscal 1Q16 to fiscal 3Q16, Visa generated data processing revenues amounting to $4.49 billion. From fiscal 1Q17 to fiscal 3Q17, the company managed to garner data processing revenues of $5.71 billion, which reflects an increase of 27%. This rise came on the back of strong growth in processed transactions from fiscal 1Q17 to fiscal 3Q17.
Visa managed to report other revenues amounting to $605 million from fiscal 1Q16 to fiscal 3Q16 and $615 million from fiscal 1Q17 to fiscal 3Q17, reflecting a marginal increase of 2%.
Free cash flow yield
Visa (V) reported a free cash flow yield of 2.02% on a trailing-12-month or TTM basis. Free cash flow yields for other consumer financial players (XLF) on a TTM basis are as follows.
Moving forward, we’ll look into Visa’s total operating expenses, assets, liabilities (excluding equity), and premium valuations. Finally, we’ll have a look at analysts’ views on Visa.