PayPal drives eBay’s 26pc rise in quarterly profits

22 Jul 2010

Online auction firm eBay has reported a 26pc jump in quarterly profits, which was mostly down to greater use of its PayPal web payment service.

Second-quarter net profit at the web giant was US$412m, against the US$327m earned during the same quarter in 2009.

Revenue rose 6pc for the second quarter to US$2.2bn compared to the same period of 2009.

eBay said PayPal delivered a record second-quarter performance, adding a million new accounts each month during the quarter, with revenues rising 22pc to US$817m.

However, eBay lowered its growth forecast for the fiscal year 2010, citing full-year pressure from the stronger US dollar. The company now estimates full-year 2010 profit of between US$1.23 – US$1.28 per share on net revenues in the range of US$8.8bn – US$9bn.

“We delivered strong second-quarter results, demonstrating the global strength and increasing diversity of our business,” said eBay president and CEO John Donahoe. “PayPal is strong and getting stronger, building a robust and innovative global footprint serving all of ecommerce. And our eBay turnaround remains on track, with strong performance in Europe, significant changes in the US and continued improvements to the buying and selling experience.”

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