The Virgin credit card portfolio appears to be in decline, to the disappointment but presumably not surprise of Westpac, which funds the card, and Virgin, which hires out its brand.Financial Statements for Virgin Money (Australia) Pty Ltd show declining revenues for Virgin from its credit card agreement with Westpac. Virgin Money finalised the financial report a month ago and the documents became available through ASIC this week. "Bounty revenue" from the credit card joint venture with Westpac fell 14 per cent to $27.7 million over the year to March 2007. Notes to the accounts show that Virgin recognise revenue on an accrual basis and "as a fixed fee for each card issued and utilised over the period."Virgin wrote down the value of its management rights to the credit card business to $1.1 million at March 2007 from $2.5 million at March 2006. The rights have a remaining life of 1.5 years, that is, until September 2008.The financial statements show that the company opted not to make a provision for a payment of $6 million notionally owed by Virgin Money Australia to Virgin Money Limited (in Britain) and theoretically payable in early 2009. The provision was "not required" as the payment "is not considered probable … based on actual performance to date and forecast performance over the remaining period."Even though the Virgin Money credit card hasn't met targets Westpac's credit card business has still exceeded market growth. Analysis of APRA and RBA data by MWE Consulting shows that Westpac reported growth of 13 per cent in the credit card segment in the year to June 2007 compared with market growth of 11 per cent.Westpac and Virgin introduced the Virgin credit card, with a glitzy launch, a torrent of free media and glum bank executives amid rumours the deal was favourable to Richard Branson and his mass market brand and unfavourable to Westpac.In the end Virgin card - promoted as being low rate though it wasn't really - proved a dud. Westpac approved fewer applications than Virgin wanted and customers on the whole made little use of the card.The Herald Sun today reported that Virgin was in talks with Westpac on renewing the cards agreement with Westpac.Virgin Money in Australia moved on to other things.The firm's launch of superannuation product managed by Macquarie Bank proved a bigger disappointment. The financial statements show management fees from this segment doubled to $476,000 in the year to March 2007.Macquarie bought a 10 per cent stake in Virgin Money and took half the seats on the board.The pair then worked on home loan business for Virgin which is probably the dominant part of the business.The financial statements show $10.7 million in revenue in the 2007 profit and loss for Virgin, which appears to reflect the current value of trail fees owed to the firm. Virgin may have to reverse some of these revenues if trail fees are less than assessed, a prospect borne out by commentary over the impact of the credit crisis (and written in