PayPal helps eBay Q2 net up 26% at $412 mn

PayPal helps eBay Q2 net up 26% at $412 mn

New York: Online marketplace eBay has reported a 26% growth in net income at $412 million for the April-June quarter this year boosted by strong performance from its PayPal online unit.

In the year-ago period, the company had a net income of $327 million, eBay said in a statement.

The company’s revenues rose by 6% to $2.21 billion in the second quarter ended 30 June 2010.

“We delivered strong second quarter results, demonstrating the global strength and increasing diversity of our business," eBay Inc president and CEO John Donahoe said.

The company’s PayPal business delivered record second quarter performance. PayPal added a million new accounts each month during the quarter and its merchant services business continued to gain share in ecommerce.

For three consecutive quarters, PayPal’s merchant services business has grown by over 40% year over year.

Donahoe further said, “PayPal is strong and getting stronger, building a robust and innovative global footprint serving all of ecommerce. And our eBay turnaround remains on track, with strong performance in Europe, significant changes in the US and continued improvements to the buying and selling experience."

Looking ahead for the third quarter, eBay is expecting a revenues in the range of $2.13 billion to $2.18 billion, representing growth of 4 to 6% compared to same quarter last fiscal.

As of 30 June 2010, eBay has strong cash position with cash and cash equivalents stood at $5.6 billion compared to $5.2 billion at 31December 2009.

A strengthening US dollar compared to the euro was expected to affect eBay’s earnings, which is believed to receive 60% of its total revenue from outside the US.

“However, full year pressure from the stronger US dollar, relative to other currencies, is expected to have full year negative impact on 2010 net revenues," the company said.