E-commerce giant eBay has reported Q2 revenues of US$4.4bn, below Wall St expectations of US$4.5bn. Ahead of its spin-off of PayPal, eBay revealed that it is also selling off its eBay Enterprise division to a consortium of venture capitalists for US$$925m.
The Q2 revenue figures exclude US$300m of revenue from the eBay Enterprise group.
A consortium comprised of Sterling Partners, Longview Asset Management and Innotrac Corporation in partnership with companies owned by Permira Funds has agreed to pay US$925m for eBay Enterprise.
PayPal, which is splitting off from eBay, reported revenues of US$2.3bn on payment volume of US$66bn, up 20pc on last year.
PayPal targets US$600bn global remittance market
Last Autumn it emerged that eBay planned to split off PayPal as a separate company with its own board control.
“We are very pleased with our overall Q2 performance. PayPal and eBay both delivered strong Q2 results and have strong momentum,” said eBay Inc President and CEO John Donahoe.
“Dan, Devin and their respective teams are executing well and are prepared to create the next great chapter for PayPal and eBay.”
Donahoe continued: “Payment volume through eBay Marketplaces was US$14.5 billion, representing 22pc of total TPV. Revenue grew to US$2.3 billion. PayPal grew new active accounts 11pc to 169 million and processed 1.1 billion transactions.
“We continued to deepen customer engagement with our customer base: in the second quarter transactions per active account increased to 24 per year, compared to 21 times a year ago, and monetisation per active account increased to US$50 per year.
“The strong, steady growth of PayPal’s customer base coupled with rising engagement continues to prove the brand’s growing popularity and value proposition globally.
“PayPal also agreed to acquire Xoom Corporation for approximately US$890 million net of cash. We anticipate that acquiring Xoom will help accelerate PayPal’s entry into the US$600 billion global remittance market, and that adding additional services to our technology platform will allow PayPal to amplify its consumer flywheel, creating a more powerful network effect,” Donahoe said.
eBay image via Shutterstock