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Ebay reports growth, but cautious about third quarter

Warwick Ashford

The Ebay group has reported overall earnings for the second quarter ending 30 June of $2.2bn (£1.45bn), up 6% on the same period a year ago.

Despite the growth, the company gave lower-than-expected guidance for the current quarter, predicting that a strengthening dollar will cut into overseas revenue.

Ebay's growth came mainly from its online payments business, which includes PayPal and short-term credit service Bill Me Later.

The unit's revenue rose 22% to $817m, total payment volume jumped 28% to $21.4bn and PayPal alone gained three milion new accounts in the quarter.

The growth is due to an increasing number of consumers and merchants using Ebay's payments business to send money online, according to the San Francisco Chronicle.

John Donahoe, chief executive at Ebay, predicts that in the next few years the payments business' revenue will surpass that of Ebay's marketplaces segment.

Revenue from marketplaces was up 11% to $1.4bn, helped by growth in Ebay's European business. US growth was slower than expected, the company said.

Ebay's gross merchandise volume rose 13% to $12.5bn and the number of active members rose 4% to 91.8m.

The group's shares rose more than 3% in after-hours trading.


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