eBay reveals Q2 earnings increase, despite data breach

17 Jul 2014

eBay Inc emerged from the second quarter with earnings of US$676m, a 6pc increase from US$640m in the same period last year, even though hackers compromised user data in May.

eBay Inc, which includes online auction giant eBay and e-payments business PayPal, also reported a 13pc increase in revenue from the year-ago quarter, to US$4.4bn.

PayPal revenue grew to US$1.9bn. The number of new active registered accounts also increased, by 15pc to 152m.

PayPal net total payment volume rose 29pc with Merchant Services volume up 35pc and on-eBay volume up 13pc.

eBay Inc president and CEO John Donahoe said that in a challenging second quarter, eBay Inc’s commerce and payments platforms delivered strong enabled commerce volume growth of 26pc.

“We continued our momentum in the four competitive commerce battlegrounds of mobile, local, global and data,” said Donahoe.

“PayPal generated another strong quarter, while eBay’s growth was hampered by its global password reset for all users.”

In May, hackers compromised the company’s systems, exposing the login details of nearly 150m eBay users. All eBay users were asked to reset their passwords.

In the quarterly shareholders call, Donahoe said about 80pc of buyers have since changed their passwords, but not everyone in that percentage has demonstrated previously seen levels of activity on the site.

eBay chief financial officer Bob Swan added that the company is implementing measures such as coupons, seller incentives and increased marketing to reignite re-engagement.

eBay sign image via Shutterstock

Tina Costanza was a journalist and sub-editor at Silicon Republic