Visa Inc (NYSE: V) stock lost over 1.4% in the pre-market session of July 29th, 2020 (Source: Google finance) post lower than expected third quarter of 2020 performance. The Net revenues fell 15% yoy to $4.8 billion, due to payments volume, cross-border volume and processed transactions impact. The Total processed transactions, which represent transactions processed by Visa, fell 13% yoy to 30.7 billion, while Payments volume fell 10% on a yoy basis. The Cross-border volume excluding transactions within Europe, lost 47% yoy while with cross-border transactions within Europe, the fall is 37% on a yoy basis. Service revenues was flat at $2.4 billion during the quarter. Data processing revenues fell 5% yoy to $2.5 billion. International transaction revenues lost 44% yoy to $1.1 billion. Management forecasts a weak outlook given the ongoing uncertainty to COVID-19 and therefore did not issue fiscal full-year 2020 outlook.
On the other hand, the firm saw spending improvements each month as most countries started easing domestic restrictions. Payments volume has been improving in US while eCommerce excluding travel spend remained consistently elevated, as consumers continued to shift them spend online. International markets reopening and recovery is mixed. Cross-border volume has slightly improved but continued to affect as travel is worst hit despite solid eCommerce spending. The GAAP net income fell 23% yoy to $2.4 billion or $1.07 per share.
The group also bought back 5.2 million shares of class A common stock, at an average price of $180.47 per share, using $0.9 billion of cash on hand. They returned $1.6 billion of capital to shareholders in the form of share repurchases and dividends. Cash, cash equivalents and investment securities reached $17.2 billion as of June 30, 2020. Total assets rose to over $ 77.8 billion during the third quarter of 2020 from $72.6 billion in the prior corresponding period. But the Net cash in operating activities fell to $8.3 billion during the quarter as compared to $8.7 billion in prior corresponding period.