Despite an increase in revenue, eBay reported a fall in profit in the second quarter, attributing the dip to the online auction giant’s purchase of GSI Commerce, an interactive services company.
eBay’s reported revenue of US$2.8bn, marking a 25pc increase from the same period last year.
Net income was US$.283.4m, or $0.22 per diluted share, as a result of changes pertaining to the acquisition of GSI.
“Second quarter revenue and earnings were strong, with PayPal surpassing 100m active registered accounts and reporting its first
billion-dollar revenue quarter, and eBay growth in the US accelerating,” said eBay Inc. president and CEO John Donahoe.
“We also strengthened our portfolio in Q2 with acquisitions that we believe will more broadly position us to enable the future of commerce. 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.”
eBay’s e-commerce powerhouse PayPal drew more than $1bn in quarterly revenue for the first time, driven by strong performance in its Merchant Services business, as well as increased penetration on eBay.
PayPal’s net total payment volume grew 34pc to $28.7bn in the second quarter of 2011 compared to the same period of last year.