eBay’s revenue jumps 18pc to US$4bn in fourth quarter

17 Jan 2013

Fourth-quarter revenue for online auction giant eBay jumped 18pc to US$4bn compared to the same period in 2011 as its PayPal and Marketplace units also showed strong performance for the quarter ended 31 December 2012.

The company’s net income for the fourth quarter amounted to US$751m, or US$0.57 per diluted share.

For the full year, eBay’s revenue rose 21pc to US$14.1bn, compared to 2011. The company reported net income of US$2.6bn, or US$1.99 per diluted share.

PayPal’s fourth-quarter financial results

eBay-owned global online payments firm PayPal saw its fastest active account growth rate in years in Q4, when it added nearly 2m accounts a month during the period.

PayPal ended the year with about 123m registered accounts.

Geographic expansion and continued merchant and consumer adoption contributed to PayPal’s net total payment volume rising 24pc, producing revenue growth of 24pc, as well.

PayPal’s mobile payment volume reached nearly US$14bn in 2012, up more than 250pc over the prior year, as more consumers used their smartphones and tablets to pay online.

Strong performance in the US propelled eBay’s Marketplace business to a record US$2bn revenue in the fourth quarter. Continued investments in expansion and the customer experience fuelled revenue for the full year.

Increase in mobile commerce

Mobile commerce volume in 2012 grew more than 120pc to US$13bn, driven primarily by increased adoption of eBay’s mobile apps and increased engagement from product innovation.

eBay’s suite of mobile apps attracted more than 4m new customers in 2012.

“Mobile continues to rewrite the commerce playbook, and we continue to be a mobile commerce and payments leader,” said John Donahoe, eBay Inc. president and CEO.

“eBay mobile finished the year with US$13bn in volume – more than double the prior year – and PayPal mobile handled almost US$14bn in payment volume, more than triple the prior year. In 2013, we expect each to exceed US$20bn.”

Donahoe added that web-enabled multi-channel commerce is evolving quickly, and consumer shopping behaviour is changing rapidly.

“Our focus is on being a global commerce leader in this new environment, connecting buyers and sellers everywhere, and being a preferred multichannel partner of choice for retailers and brands of all sizes,” Donahoe said.

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