Visa flags hit to second-quarter revenue due to coronavirus outbreak
Visa Inc warned on Monday that its second-quarter revenue growth would be slower than its previous forecast, becoming the latest payments services provider to be affected by the coronavirus outbreak.
The company said it expects current-quarter revenue growth to be between 2.5 and 3.5 percentage points lower than its previous forecast of low double digit growth, when compared with the first quarter.
Rival Mastercard Inc and payments processor PayPal Holdings Inc have warned of slowing first-quarter revenue growth due to the outbreak.
Visa said the epidemic has impacted travel to and from Asia, and has driven a sharp slowdown at its cross-border business, a key source of revenue for the world’s largest payments network.
The company said slowing cross-border growth rates do not yet fully reflect the virus spreading outside of Asia. “We anticipate that this deteriorating trend has not bottomed out yet.”
(Content and photos syndicated via Reuters)