Card giants warn on Covid-19 impact
Visa and Mastercard have published 8-K (SEC Filings) reports addressing the impact of Covid-19 on their revenue and other financial components.
The companies have warned of slow January-March quarter revenue growth with uncertain upcoming quarter (April-June) growth. Visa in its 8k filing said, “The extent to which the coronavirus (COVID-19) outbreak and measures taken in response thereto impact our business, results of operations and financial condition will depend on future developments, which are highly uncertain and are difficult to predict”.
Mastercard’s revenue growth after revision due to Covid-19 is expected to be “low-single-digits” which was earlier predicted to be “High-end of high- single digits”.
The company has suspended its annual 2020 outlook for both net revenue and operating expense growth.
Visa’s cross border volume growth between January and March is expected to be Zero per cent while March growth is expected to be down by 19% compared to the same period in the previous year. Company’s revenue is expected to be “Mid-single-digit” in Jan-March 2020.