(Corrects typographical error in headline to cast instead of casts)
Feb 1 (Reuters) - Visa Inc reported a better-than-expected quarterly profit on Thursday, joining smaller rival Mastercard, as a solid holiday shopping season boosted transactions on its payment network.
However, shares fell 1.52 percent in extended trading as Visa sees higher full-year expenses and slower revenue growth in the current quarter.
"Our outlook for the fiscal second quarter net revenue growth remains a couple of points below the full year rate," Chief Financial Officer Vasant Prabhu added.
Net income rose to $2.52 billion in the first quarter ended Dec. 31 from $2.07 billion a year earlier, while earnings per Class A share rose to $1.07 from 86 cents. (http://bit.ly/2rYmYit)
The payment processor recorded a gain of $1.13 billion related to the new U.S. tax law and a charge of $1.15 billion tied to the repatriation of funds held overseas.
Excluding items, Visa earned $1.08 per share. Analysts on average expected 99 cents, according to Thomson Reuters I/B/E/S.
Total operating revenue rose 9 percent to $4.86 billion, reflecting growth in payments volume and processed transactions.
Operating expenses rose 12.8 percent to $1.54 billion and Visa said it expects expenses to rise in the second quarter as well.
Payment volumes rose about 10 percent to $1.93 trillion, on a constant dollar basis, with the United States accounting for about 43.3 percent of the total. Cross-border volumes the value of transactions made outside of the United States increased 9 percent, on a similar measure. Visa said it would repurchase $7.5 billion of its stock and it has $9.1 billion of funds available for share buybacks.
Earlier in the day, Mastercard reported a 20.2 percent jump in quarterly revenue. (Reporting by Diptendu Lahiri in Bengaluru; Editing by Anil D'Silva)