Turnover up but profits down at eBay

This is an archived article - we have removed images and other assets but have left the text unchanged for your reference

Online marketplace and payment solutions giant eBay has unveiled a 25% leap in turnover, but said profits were down following its acquisition of GSI Commerce.

The company said that revenues rose to $2.8bn (£1.7bn) in the second quarter of its year, to June 30, and up by a quarter compared to the same time last year.

Growth came both in its PayPal division and on its signature marketplace sites, where turnover grew by 19% to $1.6bn (£0.98bn).

PayPal grew active customer numbers by 15% to pass the 100m milestone and also reported its first $1bn (£0.6bn) revenue quarter, came both from strong performance in its merchant services business and from its wider use on eBay. Mobile payments are a key source of income, with mobile payments worth more than $3bn (£1.8bn) expected this year, up from $750m ($460.1m) in 2010.

But net income fell to $283.4m (£172.9)from $412m (£252.8m) at the same time last year, following its takeover of ecommerce specialist GSI Commerce in the last quarter.

John Donahoe, president and chief executive of eBay, said the acquisition would “more broadly position us to enable the future of commerce.” He added: “We will partner with retailers of all sizes to help them grow in a rapidly shifting, technology-driven multichannel commerce environment and we will help consumers shop and pay anytime, anywhere, any way.”

Some 56% of eBay marketplace turnover comes from its international websites, including that in the UK. That proportion remained steady over the last year, while PayPal has increased its proportion of international revenues to 52% from 48% since the same time last year.

Read More

Register for Newsletter

Group 4 Copy 3Created with Sketch.

Receive 3 newsletters per week

Group 3Created with Sketch.

Gain access to all Top500 research

Group 4Created with Sketch.

Personalise your experience on IR.net