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Visa’s Total Operating Expenses Have Risen in 2018

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Total operating expenses

Visa’s (V) total operating expenses rose 4% YoY (year-over-year) to $1.73 billion in fiscal 2Q18. The company incurred personnel expenses of $824 million in fiscal 2Q18—compared to $704 million a year ago, which implies the rise of 17% mainly due to a rise in the incentive compensation and employees.

Visa’s marketing expenses were $261 million in fiscal 2Q18—compared to $193 million in fiscal 2Q17, which reflects an increase of 35%. That rise was mainly due to increased campaign costs.

Professional fees and other expenses

Visa incurred network and processing expenses of $169 million in fiscal 2Q18—compared to $150 million in fiscal 2Q17, which reflects an increase of 13% due to deployments made towards the network and technology.

Visa’s depreciation and amortization expenses were $153 million in fiscal 2Q18—compared to $131 million in fiscal 2Q17, which implies an increase of 17%. The company incurred professional fees of $108 million in fiscal 2Q18—compared to $83 million in fiscal 2Q17, which represents an increase of 30%. The increase was mainly due to consulting fees associated with corporate projects and technology.

On May 2, Visa had a market capitalization of $285.5 billion. Visa’s peers (XLF), Synchrony Financial (SYF), Fiserv (FISV), and Total System Services (TSS) had market capitalizations of $24.9 billion, $29.4 billion, and $15.3 billion, respectively.

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