VISA Aims to Make up Lost Russia Revenue

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VISA Aims to Make up Lost Russia Revenue
09 Apr 2022
5 min read

News Synopsis

According to the Chief Financial Officer (CFO) of Visa Inc, the company lost about 4% of its reported revenue in its most recent fiscal year due to its withdrawal from Russia, but thanks to the company's global revenue growth, it was unlikely that the impact would be felt within a year.

Chief Financial Officer Vasant Prabhu said this year's earnings will be difficult to compare to last year's earnings as the company exited Russia due to an invasion of Ukraine. Visa announced the suspension of its operation in Russia on March 5 and shut down its business five days later.

But by next year, lost revenue should be offset by growth elsewhere, Prabhu said. Visa's global net sales for the year ended September 30 increased by 10% over the past 12 months to $24.1 billion. Russia accounted for about 4% of Visa's revenue for the year ended September 30.

Visa’s revenue from the rebound in global travel and the continuing recovery of the company’s cross-border payments business will likely more than make up for the sales generated in Russia, said Brett Horn, senior equity analyst at the financial services firm, Morningstar Inc’s research division. 

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