FILE PHOTO: A Visa credit card is seen on a computer keyboard in this picture illustration taken September 6, 2017. REUTERS/Philippe Wojazer/Illustration
(Reuters) – Visa Inc (V.N) missed analysts’ estimates for revenue and posted a 14% rise in operating expenses for the first quarter on Thursday, sending its shares down nearly 2%.
The world’s largest payments network has been spending more on rewards and incentives such as airport lounge access, roadside assistance programs and travel insurance, which pushed up operating expenses to $2.04 billion in the three months ended Dec. 31.
Payments processors have also leaned on acquisitions to fend off competition from digital rivals.
Earlier this month, Visa said it would buy fintech startup Plaid for $5.3 billion, as it seeks to expand into the digital and cashless economy.
The company’s net revenue rose 10% to $6.05 billion in the first quarter, but missed analysts’ estimates of $6.08 billion, according to IBES estimates from Refinitiv.
The company’s net income also rose 10% to $3.27 billion, or $1.46 per Class A share.
On an adjusted basis, Visa earned $1.46 per share, in line with analysts’ estimate.
Reporting by C Nivedita and Amal S in Bengaluru; Editing by Maju Samuel