Visa Profit Surges in First Quarter Public

Visa, (V Quote), one of the world's biggest credit-card processors, said Monday its profit surged during its first quarter as a public company as people across the globe spent more on its network.

The company's profit rose 27.6% to $314 million, or 39 cents per share, during its fiscal second quarter from $246 million, or 93 cents per share, in the year-ago period. Revenue climbed 22% to $1.45 billion from $1.19 billion.

Adjusted earnings, which exclude special items, were 52 cents per share, far exceeding the average analyst estimate of 46 cents per share, according to Thomson Financial.

International growth and increased debit-card use at home were the two main drivers for the San Francisco-based company's results as the U.S. economy stood on shaky ground. While Visa's growth rates in emerging markets like the Asia-Pacific region are much faster than in the U.S., domestic results still contribute the biggest share of revenue. Non-discretionary items took up a larger chunk of Visa's U.S. transactions as consumers faced higher prices for items like food and gasoline.

Overall payment volumes rose 19% to $681 billion, while processed transactions rose 16% to $11 billion. Increases came across all of its global divisions. The company said that the higher fee structure it implemented during the third fiscal quarter contributed to its better results. Visa also received higher revenue from data processing and cross-border transactions.

The company said an increase in fees it receives for servicing, data processing and international transactions all contributed to the profit boost. Payment volumes rose 19% to $681 billion, while processed transactions rose 16% to $11 billion. Increases came across all of its global divisions.