April 21, 2016 / 11:12 PM / 2 years ago

BRIEF-Visa says Visa europe deal closing could slip past end of Q3

April 21 (Reuters) - Visa

* Visa says possible that co could close visa europe deal towards the end of the quarter, but it could slip past the end of third fiscal quarter

* There’s no real update regarding timing regarding ability to apply for domestic license

* “china continues to be a very important market for us”

* At end of march, signed a cooperation plan with china national tourism administration establishing co as strategic partner of us china tourism year

* Beginning june 20 visa cards will be exclusively accepted at costco us and puerto rico warehouse location and fuel stations

* “We’ve not seen improvement in the global economic environment.”

* Given the quarter lag in recording service revenues, costco and usaa conversions are a drag on net revenues in the second half of 2016

* Sees q3 net revenue growth in nominal terms could come in as low as 2% to 3%

* In term of impact of visa europe for modeling purposes, thinks it is best to assume the transaction does not close in fiscal third quarter

* Will have interest expense in the third quarter but no operating income from visa europe to offset it

* “As we look ahead to 2017, we remain optimistic that revenue growth rates will step up from current levels”

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