Visa flags hit to second-quarter revenue due to coronavirus outbreak

Earnings

Visa Inc. credit and debit cards are arranged for a photograph in Washington, D.C., U.S., on Monday, April 22, 2019.

Andrew Harrer | Bloomberg | Getty Images

Visa 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 and payments processor PayPal 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.”

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