Visa calculated losses after leaving Russia

Western companies that left the Russian market in connection with the events in Ukraine were predicted to quickly return, since for many it is a premium and profitable in terms of profitability. However, at the moment, only one European company is known to have announced its return to Russia. This is the German international trade network OBI, whose representative offices in the Russian Federation will start working in the near future. But the financial statements of other large companies show that they did not even “notice” the withdrawal or suspension of activities in our country. Therefore, it is not worth expecting that their leadership will decide to take risks and return.

One of such iconic international companies for Russians, whose departure caused certain inconvenience to citizens, is the Visa payment system. American MasterCard and Visa suspended their activities in the Russian Federation on March 10, 2022. However, a detailed earnings report for the six-month period ending March 31 shows that, for example, Visa is doing well without participating in the service of our compatriots. This was announced by the company's board in the official quarterly report published on the Visa website.

In a short time after leaving Russia, Visa Inc. lost no more than 60 million dollars in total. This is an extremely small number. However, other amounts should not be expected, since, according to the analyzed report, the company's total revenue from activities in Russia last year amounted to only 4% of the total consolidated net profit worldwide.

The report also indicated that the main financial loss to Visa came from associated costs. Thus, 35 million dollars had to be spent on the deconsolidation of the Russian subsidiary of the payment system. And the remaining $25 million was spent on supporting employees of an international company employed in Russia and Ukraine. Another $4 million expense was also recorded, according to the report. This is an irretrievable loss, but in the end it was written off as payments at tax rates and not included in the net loss.

The report does not contain forecasts regarding the return of Visa to the Russian market. Perhaps, by now, neither the company's Russian clients, nor the payment system itself need it - the withdrawal turned out to be very painless for all parties. And although now citizens of the Russian Federation who own Visa products are deprived of the opportunity to pay for purchases abroad, as well as in foreign online stores, payments, as well as cash withdrawals using Visa cards, remain available in Russia in full.
  • Photos used:
Dear reader, to leave comments on the publication, you must sign in.
  1. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) April 27 2022 09: 40
    Yes, sir. And in PR articles they describe how hard it will be for them all without Russia ...
    1. Dan Offline Dan
      Dan (Daniel) April 27 2022 10: 53
      Quote: Sergey Latyshev
      Yes, sir. And in PR articles they describe how hard it will be for them all without Russia ...

      I think that the main thing is that it did not cause tangible losses. There is a system "Mir", with almost the same functionality. The money for using this system revolves within the country. And about "Visa" I will say this, because they are leaving to harm us, but at the same time they themselves refuse possible profits. So we have a minimum of harm, but the profit is gone completely. That's the whole PR for you. And in fact, they really will not be great. After all, any corporation plans its income in advance and makes plans for some kind of its development from them. Now they will have to sequester those plans. Yes, certainly not fatal. But annoying (for them, in the first place). In general, all these sanctions are stupidly conceived, even more stupidly implemented.
    2. Oleg_5 Offline Oleg_5
      Oleg_5 (Oleg) April 27 2022 11: 32
      even more:

      Visa's net profit increased by 24% in the first half of the 2021-2022 financial year, to $7,6 billion.
      1. 123 Offline 123
        123 (123) April 28 2022 19: 25
        Excuse me, but what does the first half of the fiscal year have to do with it? It starts in September and ends in February. Recent events had little effect on him. If I'm not mistaken, the first messages about the suspension of work appeared on March 5th.

        Net profit:
        2019 - $12 million
        2020 - $10 million
        2021 - $12 million