Visa Warns It Will Be Challenged ‘for a Number of Quarters’

(Bloomberg) — Visa Inc. Chief Executive Officer Al Kelly warned the firm will be challenged “for a number of quarters” even as declines in spending on its network began to moderate in April.

As the U.S. government began sending out stimulus payments to millions of consumers this month, Visa saw an increase in spending on home improvement, automotive and some areas of health care. Still, spending on the firm’s cards in the U.S. has dropped 19% in April compared with the same period a year earlier, according to Chief Financial Officer Vasant Prabhu.

To offset the slowdown in spending on its cards, Visa said expenses in the second half of the year would be flat compared with the same period a year ago. The company, which has vowed it won’t make any virus-related layoffs this year, said costs rose 4% to $1.93 billion in the first three months of the

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Visa withdraws annual outlook amid virus outbreak

(Reuters) – Visa Inc on Thursday decided to pull its full-year outlook on rising unemployment numbers and more people conserving cash during the COVID-19 pandemic even while posting a second-quarter profit that rose 4%.

In January, the world’s No. 1 payments processor forecast a revenue growth in the low-double digits for the full year.

“Our prior outlook for fiscal 2020 is no longer relevant, and it is not possible to provide you with any reliable forecast for the second half,” Chief Financial Officer Vasant Prabhu said.

U.S. retail sales suffered a record drop in March from the closure of bars, restaurants and non-essential retailers such as clothing stores, outweighing an anticipated surge in spending on household essentials and at online retailers such as Amazon.com Inc.

“About 1/4 of our payments volume is in the hardest-hit categories, including travel, fuel, restaurants and entertainment,” Prabhu said.

The company’s total payments volume rose

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