PayPal drives Ebay Q2 sales up 25%

Ebay has reported second quarter sales of $2.8bn, an increase of sales by 25% compared to the year before.

Ebay has reported second quarter sales of $2.8bn, an increase of sales by 25% compared to the year before.

Ebay's profit dropped 31% to $283.4m, down from $412.2m in the second quarter of 2010. Ebay blamed charges related to its recent acquisition of interactive marketing firm, GSI Commerce for the decline.

Ebay's PayPal and Marketplaces businesses - as well as mobile apps - drove an overall sales increase.

"Second quarter revenue and earnings were strong, with PayPal surpassing 100 million active registered accounts and reporting its first billion-dollar revenue quarter, and eBay growth in the US accelerating," said John Donahoe, eBay CEO.

"We also strengthened our portfolio in Q2 with acquisitions that we believe will more broadly position us to enable the future of commerce. We will partner with retailers of all sizes to help them grow in a rapidly shifting, technology-driven multichannel commerce environment, and we will help consumers shop and pay anytime, anywhere, any way," John Donahoe added.

Ebay's PayPal business increased active registered accounts to 100.3 million, an increase of 15% year-on-year. Ebay expects PayPal to achieve more than $3bn in mobile sales in 2011, compared to $750m in 2010.

Ebay's Marketplaces business increased sales by 17% year-on-year to $14.7bn. Growth in Europe drove a 19% year-on-year increase in international sales.

Worldwide downloads of eBay's mobile apps reached 45 million.

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