- The payoff for Visa (V -3%) in its gigantic acquisition of Visa Europe could be in the ability of the company to push up the operating margin.
- Over the last year, Visa recorded an operating margin of 65%, compared to the 26% margin seen at Visa Europe. The issue was addressed on a lengthy conference call earlier today.
- "We feel good that by the time we're done with the integration, Visa Europe margins should be in the Visa Inc. range," noted Visa management
- The company's ability to upgrade technology and processing systems at the European business were cited as ways Visa could bring those margin rates closer together.
- Shares of Visa are lower today with the deal price for Visa Europe higher than some expected.
- Visa earnings call transcript
- Previously: Visa lands Visa Europe in highly-anticipated deal (Nov. 02 2015)
- Previously: Visa levers up to reach untapped European payments base (Nov. 02 2015)