eBay Inc enjoys strong Q1 as revenue hits US$4.45bn

22 Apr 2015

E-commerce giant eBay Inc has reported strong first-quarter revenues of US$4.45bn.

Non-GAAP earnings were US$943m (or $0.77 per diluted share), which the company says were driven by transaction growth and a tighter grip on expenses.

Online payments company PayPal, a subsidiary of eBay, enjoyed a net total payment volume jump of 18pc in the quarter to US$61bn.

In addition, PayPal gained 3.6m new active accounts, rising 11pc to 165m, and processed more than 1bn transactions in the quarter, up 24pc. eBay last year announced plans to spin-off PayPal into an independent firm.

“We had a strong first quarter, with eBay and PayPal off to a good start for the full year,” said eBay Inc president and CEO John Donahoe in a statement.

“I feel very good about the performance of our teams at eBay and PayPal. Each business is executing well with greater focus and operating discipline as we prepare to separate eBay and PayPal into independent, publicly-traded companies.

“We are moving forward with clarity and speed, with a smooth separation expected in the third quarter. We are deeply committed to setting up eBay and PayPal to succeed and to deliver sustainable value to our shareholders.”

The positive result came despite eBay bemoaning the power of the strong US dollar against foreign currencies, which it claimed “significantly impacted” results for the quarter as weaker local currencies in some markets led to reduced demand for goods in export-oriented markets like the US.

Dean Van Nguyen was a contributor to Silicon Republic