|Day's range||52.90 - 52.90|
Today, Accor, a world-leading hospitality group, and Visa (V: NYSE), the global leader in digital payments, announced a global partnership to bring new payment experiences to ALL-Accor Live Limitless loyalty members.
(Bloomberg) -- BP Plc’s ambitious plan to go green is winning accolades from at least one high-profile investor.ValueAct Capital Management started building a position in BP after an “inspired” presentation Wednesday from the energy giant’s new boss about his plans to eliminate almost all its carbon emissions, according to ValueAct Chairman Jeff Ubben.The bet is on BP Chief Executive Officer Bernard Looney’s vision for the oil and gas company, which goes far beyond any of its peers, Ubben said in an interview. While Ubben had been studying the company for a while, he was inspired to buy shares during Looney’s pledge to cut greenhouse gas emissions from operations and production to net zero within 30 years.“I just started buying while I was watching,” Ubben said. “Someone needs to stand up and reward these guys.”The investment was made through the $1 billion ValueAct Spring Fund, which is focused on social and environmental investing, Ubben said. BP’s strategy is exactly the sort of investment the fund is looking for, he said. He didn’t disclose the size of his stake.While peers including Royal Dutch Shell Plc, Total SA and Equinor ASA have responded to investor pressure by adopting targets for emissions curbs, none has promised to zero them out like BP.It highlights the perils of investing in companies with so-called environmental, social and governance agendas, Ubben said.“ESG is total crap,” Ubben said, noting that the five most owned stocks in ESG funds are Microsoft Corp., Alphabet Inc., Visa Inc., Apple Inc. and Cisco Systems Inc.. “It is worse than greenwashing, since these investors ignore the externalities of Google mining your privacy; Visa earning monopoly rents on the back of small business; and Apple’s extractive business model of selling you a new phone full of mined materials as often as possible.”He said to actually have an impact, investors have to get involved with the companies where their core business deals directly with the biggest problems of the day, which he said is climate change. To that end, he said the ValueAct Spring Fund has joined the board of power producer AES Corp. to help facilitate its move away from fossil fuels and the private board of Nikola Corp.Representatives for Apple, Visa, and Alphabet weren’t immediately available for comment.ValueAct on Wednesday also was granted a seat on the board of Hawaiian Electric Industries Inc. Eva Zlotnicka, managing director of the Spring Fund, will join the board and also sit on its compensation committee.ValueAct, which owns a 1.5% stake in the utility, had urged Hawaiian Electric to look externally for a successor to CEO Constance Lau in a November letter to stakeholders, arguing it needed a shift in corporate culture. ValueAct also raised concerns that the company wouldn’t reach its renewable targets.“As an island economy, sustainability is must,” Ubben said. “It is an inspired place, with legislative and regulatory leadership that wants to reward innovation. Hawaiian Electric management and board have taken on the challenge to move faster off of base-load oil.”The San Francisco-based hedge fund disclosed its original stake in Hawaiian Electric in October 2018 through the Spring Fund. Total shareholder returns since ValueAct disclosed its position have been about 38%, according to data compiled by Bloomberg.Last month, Ubben, the founder of ValueAct, was replaced as CEO of the activist firm by Mason Morfit. Ubben remains chairman and will continue to help run the Spring Fund.\--With assistance from Laura Hurst.To contact the reporter on this story: Scott Deveau in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, Matthew Monks, Michael HythaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Visa Inc. gained as much as 2.1%, the most since mid-January, after hosting its first investor day in three years on Tuesday. Analysts pointed to strong growth trends and new ways to boost consumer payment flows.Here’s a sample of the latest commentary:Morgan Stanley, James FaucetteThe investor day “should help quell concerns from potential investors over disruption risk, as Visa showed its integral role in perpetuating industry growth, including for fintechs, banks and acquirers,” Faucette wrote in a note.“The consumer payments runway looks robust,” he added, with long-term “opportunity to monetize other payment flows.” Visa has also “cemented its position as a key promoter of faster digital payments by highlighting its work with transit systems, remittance companies.” At the same time, Faucette said there may be some “noise” ahead from foreign exchange and volumes growth in China. He rates the stock overweight with a price target of $240.Bernstein, Harshita RawatIn comparison to Visa’s last investor day three years ago, there was an “immense focus on, granularity of strategy and visible progress towards the next leg of growth – expansion into new flows,” Rawat wrote in a note.She added that Visa “hammered home the secular growth opportunity in consumer-to-business payments with interesting spotlights on battleground areas such as emerging markets (e.g., India) and cash-heavy developed markets (e.g., Germany, Japan).” And contactless and e-commerce remain “powerful catalysts for cash digitization,” she said.Bernstein remains bullish on Visa and believes the “investor day will start to change the narrative on slower growth versus Mastercard.”KBW, Sanjay Sakhrani“The company did a solid job making the case that the growth story remains strong and the future is as bright as the past,” Sakhrani wrote in a note. The steps Visa is taking to be “more accessible (via partnerships), robust (via the network of network strategy) and deeper (through value-added services) is a formula that will yield significant returns,” he added.Sakhrani still sees Visa as a “compelling long-term growth story” and reiterated his outperform rating and $245 price target.Nomura Instinet, Bill CarcacheCarcache believes Visa’s “three-pronged strategy positions it to sustain double-digit revenue growth and mid-teens EPS growth for years to come.”At the same time, he added that the company’s investments are likely to keep expense growth elevated in the near-term. He reiterated his buy rating on the shares.UBS, Eric Wasserstrom“The central theme of Visa’s investor day was that, by virtue of its pivot to become a network-of-networks, it is evolving from a consumer payments company to a broader money movement ecosystem,” Wasserstrom wrote.That pivot may extend Visa’s “relevance into several new payment flows – opening significant new TAM – and the financial implication is that Visa should sustain low double digit revenue growth longer term,” he said. The investor day affirmed Wasserstrom’s “focus on the opportunities from new flows,” but didn’t alter his current financial forecasts.To contact the reporter on this story: Felice Maranz in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Steven Fromm, Scott SchnipperFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Women in Payments recognized exceptionally talented leaders and rising stars in the payments industry at the annual Women in Payments symposium in Washington, DC, on February 10.
For actress Lupita Nyong’o, winning an Oscar for “12 Years a Slave” back in 2014 set her on a very different career path and changed her relationship with money.
Interchange rates of the world's largest payment processor will go up or down depending on the merchant and the way consumers pay for their purchases, the report said. "Based on the most recent review in the U.S., Visa is adjusting its default U.S. interchange rate structure to optimize acceptance and usage and reflect the current value of Visa products," Visa said in the document.
Visa Inc is planning the biggest changes in a decade to the rates U.S. merchants pay to accept its cards, Bloomberg reported https://bloom.bg/2vGWtA7 on Tuesday, citing a document Visa sent to banks. Interchange rates of the world's largest payment processor will go up or down depending on the merchant and the way consumers pay for their purchases, the report said. "Based on the most recent review in the U.S., Visa is adjusting its default U.S. interchange rate structure to optimize acceptance and usage and reflect the current value of Visa products," Visa said in the document.
Last week saw the newest first-quarter earnings release from Visa Inc. (NYSE:V), an important milestone in the...
(Bloomberg Opinion) -- Consolidation in the digital payments industry has traditionally meant bold deals to buy fast-growing assets at sky-high valuations — with the acquirers often cheered on blindly by investors. Worldline SA has chosen a different path: A modestly expensive deal to buy struggling French peer Ingenico Group SA. Shareholders have frowned. Worldline Chief Executive Officer Gilles Grapinet must be wishing he’d stuck with convention.Ingenico has been a bid target for some time. It is weighed down by a handheld terminals business and has been playing catch-up in online payments. Late 2018 brought a management and strategy reset with the appointment of former Visa executive Nicolas Huss as CEO. Natixis SA, a French bank, dropped plans for a possible takeover not long afterwards, sending Ingenico shares to just 45 euros apiece. Just over a year later, Worldline is offering a combination of cash and its own stock that’s worth 123.10 euros a share based on its last closing price. That values Ingenico’s equity at 7.8 billion euros ($8.6 billion).Maybe Worldline should have moved sooner, but it would have struggled to coax its target to the table before now. An attempt at a deal last year would have been blatantly opportunistic, with Ingenico’s shares on the floor, and Huss’s elevation has bolstered the company’s bid defenses. Grapinet would have needed to offer a much bigger premium than the 17% that has secured this deal. What’s more, the transaction value of 15 times expected 2020 Ebitda is relatively sober in this part of the fintech sector. Fidelity National Information Services Inc. paid 29 times trailing Ebitda for Worldpay Inc. in July. Denmark’s Nets A/S succumbed to a leveraged buyout at 18 times Ebitda in 2018.The lower valuation reflects the fact that Worldline is not acquiring a business firing on all cylinders. The deal starts to look more pricey when you consider what the buyer is getting. Based on Ingenico’s expected financial performance for 2020, the starting return on the total 9.5 billion euros all-in cost (including assumed net debt) would be just 4%. Worldline reckons it can extract 250 million euros of financial benefits come 2024, when analysts forecast Ingenico could generate about 720 million euros in operating profit. Adjusting for tax, the returns might then get to a more reasonable 8%. Still, investors have to wait for it.What's more, Worldline’s board would expand to an unwieldy 17 members, including a director from the French state investment bank.Might things turn out better than Worldline’s shareholders believe? Grapinet has some options to do more than simply finish the recovery that Huss has started. One possibility would be carving out Ingenico’s terminals business and auctioning it to private equity firms. That would leave him with faster growing operations and help bring down net debt, which is likely to touch 2.5 times Ebitda after paying 2 billion euros for the cash part of the deal.It’s a reasonable piece of M&A, but no more. Investor caution is understandable. There may be higher quality targets out there. The snag is that Grapinet would have to overpay even more to get them.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Worldline SA agreed to buy rival Ingenico Group SA in a 7.8 billion-euro ($8.6 billion) deal the French technology companies say will form one of the largest payment-services providers.The two companies had been circling each other for years, and Worldline Chief Executive Officer Gilles Grapinet said on a conference call Monday that Ingenico’s reorganization last year made it the right time to bid.The takeover – the biggest of the year so far in Europe – continues last year’s spate of payments company mergers, which included a series of major deals from Fiserv Inc., Fidelity National Information Services Inc. and Global Payments Inc.Ingenico shareholders will receive 123.10 euros a share in cash or a mixture of cash and shares, the companies said Monday. That’s 17% higher than the stock’s last closing price. Worldline is also offering to buy bonds that are convertible into Ingenico shares. Worldline shareholders will own about 65% of the combined company.Ingenico gained as much as 14% in Paris on Monday, rising to 119.9 euros, the biggest intraday move in more than a year. Worldline fell as much as 8.6%.The deal looks “very positive” for Worldline at first glance, giving the company an opportunity to add to its European leadership team and increase its market share, analysts at Bryan Garnier & Co. said in a note Monday. The combined company will also have a more diversified profile than its U.S. peers, they said.Read more about Ingenico’s management shakeup here.The deal comes after a number of challenging years for Ingenico, which provides payments processing services to customers including banks, retailers and e-commerce sites, and is one of the few large firms to remain independent in the rapidly consolidating payments industry in Europe.Ingenico for years has been pushing to refocus from its legacy business -- capturing transactions on behalf of banks or credit card companies using hardware terminals in stores -- toward new services in areas like online shopping.In November 2018, Ingenico CEO Philippe Lazare was removed following a request from the board. Lazare, who led the company for 11 years, had been under increasing pressure over its performance and management struggled to convince investors of the merits of its legacy terminals business.Ingenico has since recovered, its shares more than doubling in the past year after Chief Operating Officer Nicolas Huss took over as CEO in a move many thought could lead to a potential deal. The same month, Natixis SA declined to bid for Ingenico after holding preliminary talks.“Timing is everything,” Grapinet said when asked on a call with analysts why the company didn’t attempt to buy Ingenico last year. “If you look at the stock price, it could’ve been a bargain, but I’m not sure the board of Ingenico would’ve been ready to sell.”Worldline was spun out of French computer-services provider Atos via an initial public offering in 2014, and with a 11 billion-euro market value is now bigger than its previous owner. In 2018 Worldline snapped up SIX Group AG’s payments business for 2.3 billion euros, in one of the first deals that sparked the ongoing wave of consolidation in the industry.“The combination of Worldline and Ingenico offers a unique opportunity to create the undisputed European champion in payments,” Ingenico Chairman Bernard Bourigeaud said in a statement Monday. “This transaction comes at the time of accelerating consolidation of the industry.”French state investor and Ingenico shareholder Bpifrance Financement SA said it “fully supports” the deal and in a statement said it was “committed to contribute its Ingenico shares to Worldline’s public offer and intends to become a long-term reference shareholder of the combined entity.” Bpifrance owns about 5.3% of Ingenico shares according to data compiled by Bloomberg.SIX Group and Atos, Worldline’s largest shareholders, are also in favor of the deal.Payments dealmaking may be set to continue. Worldline will become the “platform of choice for further consolidation in Europe” Grapinet said on the call.Investors have been keen to cash in on alternatives to traditional banking services. Vista Equity Partners is considering selling a stake in Finastra in a deal that could value the company at more than $10 billion including debt, Bloomberg News reported in October.Earlier in January Visa Inc. agreed to pay $5.3 billion for Plaid, a fintech firm that connects popular apps like Venmo to customers’ data in the established banking system.The combined market value of Ingenico and Worldline will be about 19 billion euros as of trading Monday, leapfrogging rival Wirecard AG.(Updates with context throughout, share price, comments from analyst call)\--With assistance from Tara Patel and Thomas Mulier.To contact the reporter on this story: Amy Thomson in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Nate LanxonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Credit card firms must review how they treat customers that have been in persistent debt to help them save up to 1.3 billion pounds a year in lower interest charges, Britain's Financial Conduct Authority said on Monday. New rules came into force in March 2018 to help customers that have, over a period of 18 months, paid more in interest, fees and charges than they have repaid on the principal balance on their card. The FCA said in a letter to CEOs of credit card firms on Monday that following a review of the rules, it was concerned that firms are proposing repayments options which are not reasonable, and even planning "blanket" suspension of credit cards.
Visa (V) fiscal first-quarter 2020 results reflect growth in payments volume, cross-border volume and processed transactions, partly offset by an increase in client incentives.
The S&P 500 is down nearly 3% from its closing high hit earlier in January, as businesses struggle with supply problems from the coronavirus epidemic that has killed 213 people in China and been declared a global emergency. The Centers for Disease Control and Prevention (CDC) said it had issued a quarantine order for all repatriated individuals from China in California. Delta Air Lines Inc lost 2.38% and American Airlines Group Inc fell 3.50% after the companies said they would suspend all flights to mainland China.
Soaring stock prices are propelling credit and debit card companies Visa Inc and Mastercard Inc up the market value charts, where they currently rank 7th and 11th among companies in the benchmark S&P 500 index. The stock prices of both Visa and Mastercard have gained roughly 50% in the past year. While the stocks may not keep up that torrid pace, Visa and Mastercard would each be worth over $1 trillion by 2023 if their average annual gains of the past three years were to continue, surging past the likes of Facebook Inc and Berkshire Hathaway Inc , if they also maintain their recent pace.
Visa (V) delivered earnings and revenue surprises of 0.00% and -0.16%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Client incentives are what Visa pays out to their issuing bank partners to increase its total payments volume (TPV), and when a partner renews, Visa's TPV goes up. In October, Visa said about 15-20% of its TPV is slated to be renewed in the first half of 2020. Visa has been spending more on rewards and perks such as airport lounge access, roadside assistance programs and travel insurance which pushed operating expenses up by 14% to $2.04 billion in the first quarter.
(Bloomberg) -- Visa Inc. said the incentives it hands out to banks and retailers will climb faster than revenue and are on track to be at the high end of its targeted range for 2020.Visa last year renewed its longtime partnership with JPMorgan Chase & Co., and has been spending more on rebates designed to encourage banks and retailers to route transactions over its network. Those incentives added up to $1.75 billion in the first quarter, a jump of 20%.Key InsightsVisa has said it’s benefiting from the shift to tap-to-pay cards at transit systems like New York’s Metropolitan Transportation Authority. Visa’s network handled 49.3 billion in transactions during its fiscal first quarter, a 11% increase, as spending on its cards also climbed.While client incentives are expected to climb, the first quarter figure fell short of the $1.82 billion average of analysts surveyed by Bloomberg.The company kept its annual expenses target of mid-single-digit growth after announcing the $5.3 billion purchase of Plaid this month.Investors are keeping a close eye on cross-border spending at Visa and its rival Mastercard Inc. to determine whether the spread of the coronavirus could weigh on consumer confidence around the world. Visa said overseas spending climbed 9% in the quarter, the highest in more than a year.Market ReactionVisa shares fell 1.6% at 4:25 p.m. in late trading in New York. They’ve risen 50% in the last year, compared with the 46% advance of the S&P 500 Information Technology Index.Read More“We continue to have great success in building and renewing partnerships and growing our acceptance network,” Chief Executive Officer Al Kelly said in the statement announcing fiscal first-quarter results. “We are excited about the recent announcement to acquire Plaid which will enhance the growth trajectory of our business well into the future.”Read Visa’s full statement here.To contact the reporter on this story: Jenny Surane in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Dan Reichl, Steve DicksonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Visa Inc. (NYSE: V) today announced its fiscal first quarter 2020 financial results through an earnings release that will be furnished with the Securities and Exchange Commission on a Form 8-K and will be available on its Investor Relations website at http://investor.visa.com/sec-filings/default.aspx.