Visa Inc., the world's largest payments network, posted fiscal second-quarter profit that beat analysts' estimates as customer card spending increased. The company also said it revised the terms of a deal to buy Visa Europe Ltd.
Net income for the period ended March 31 climbed 10 percent to $1.71 billion, including a $116 million gain from currency hedging, or 71 cents a share, from $1.55 billion, or 63 cents, a year earlier, the Foster City, California-based company said Thursday in a statement. The average estimate of 32 analysts surveyed by Bloomberg was for profit of 67 cents a share.
Chief Executive Officer Charlie Scharf has said he's committed to investing in digital payments technologies and establishing more relationships with major retailers as consumers demand better rewards. In November, the network reached a deal to buy Visa Europe Ltd. for as much as 21.2 billion euros ($23.9 billion), bringing the two firms together after eight years as separate companies. Visa said Thursday it revised the terms of the acquisition, and that the deal may not be completed by the fiscal third quarter as expected, without offering further elaboration.
American Express Co., the biggest credit-card issuer by purchases, and Discover Financial Services earlier this week posted first-quarter profit that beat analysts' estimates as customer purchases increased. MasterCard, the second-largest payments network, is scheduled to report results April 28.