eBay’s profit for its latest quarter climbed 19% year on year to USD677m, primarily driven by continuing success in its mobile division as more people turn to their smartphones and tablets for shopping. However , only just fell short of analysts expectations, coming in at USD3.75bn for the quarter ending March 31, up 14% year on year but marginally less than the USD3.77bn predicted. As a result, the firm’s forecast for its current quarter is also more conservative than expected, with revenue predictions of between USD3.8bn and USD3.9bn, compared to the US3.95bn pegged by analysts.
Slowing PayPal Growth
While eBay’s mobile division, headed by its multi-platform payments service PayPal, is still driving the firm’s performance, growth is slowing. Year-on-year growth dropped to 18% during the quarter, compared to 32% a year earlier. eBay attributes the slowdown to economic conditions in Europe, which are set to continue into its current quarter.
Nevertheless, PayPal remains eBay’s best performing division, pulling in revenues of USD1.5bn during the period, up nearly 5% on its previous quarter. Overall, eBays mobile app downloads have surpassed 162m, with 2.8m coming during the quarter. PayPal facilitated USD41bn in e-commerce across all platforms during the quarter, up 21% year on year.
Revenues in eBay’s core marketplace division continued to rise, up 13% year on year to USD2bn and nearly 20% more than the UD1.67bn recorded during its previous quarter. However, revenues at its GSI Commerce unit, which helps manage other brands’ websites, were down nearly 30% quarter over quarter to USD263m. Overall, eBay’s ‘enabled commerce volume’, or total value of goods sold across its platforms, totalled USD49n for the quarter, up 19% year on year.
eBay By The Numbers
¤ Profits climbed 19% to USD677m.
¤ Revenues grew 14% to USD3.75bn.
¤ PayPal revenues totalled USD1.5bn, up 18%.
¤ Marketplace revenues were up 13% to USD2bn.
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