Visa Inc.’s profit tumbled 75% in the most recent quarter as it booked charges related to the reorganization of its Europe business, though revenue rose more than expected amid robust growth in payments and cross-border volume and processed transactions.
Shares rose 2.8% after hours to $93.70.
Like rival Mastercard Inc., Visa is a payment network that processes credit-card and debit-card transactions, making a percentage off each.
The company purchased its European operations last June, a deal designed to bring its global operations under one roof. And during the latest quarter, Visa completed a legal entity reorganization of Visa Europe and other units to align its global corporate structure with the geographic jurisdictions in which it operates.
Accordingly, Visa recorded a $1.5 billion income tax provision and a $192 million administrative expense tied to the charitable donation of Visa Inc. shares acquired as part of Visa Europe.
In all for the fiscal second quarter, Visa earned $430 million, or 18 cents a Class A share, down from $1.71 billion, or 71 cents a share, a year earlier. Excluding items related to the reorganization, earnings were 86 cents, topping the average analyst estimate for 79 cents, according to Thomson Reuters.