US-based card company Visa will be able to restore the revenue it lost by pulling out of Russia amid Ukraine-related sanctions within a year, the company’s Chief Financial Officer Vasant Prabhu said this week, as cited by the Wall Street Journal.
Visa, along with rival Mastercard, suspended ties with Russia last month under pressure from Western governments critical of Moscow’s military operation in Ukraine. The move cost the company about 4% of revenues.
However, according to Prabhu, Visa will be able to make up for the losses by next year.
Visa’s global net revenues soared 10% year-over-year to $24.1 billion in the fiscal year ending September 30, 2021. In the first quarter of 2022, revenues climbed 19% over the same period last year to $3.6 billion, while international transaction revenues alone jumped over 50% and global cross-border volumes surged 40%, according to Visa’s fiscal report.
This uptick comes largely from the rebound in global travel and the continuing recovery of Visa’s cross-border payments business, says Brett Horn, senior equity analyst at financial services firm Morningstar. According to the analyst, while the company’s revenue growth may not be as high as previously expected, it is likely to make up for the sales that Visa used to generate in Russia.
For more stories on economy & finance visit RT’s business section