More users and mobile efforts move eBay forward
Revenues at eBay increased 14% to $3.9 billion during the second quarter ended June 30 and profits adjusted to exclude the impact of a divested business increased to $822 million, or 63 cents a share, compared to $730 million, or 56 cents a share.
The revenue growth was driven by strength of the payments business in addition to increased utilization of the eBay platform as an enabler of commerce. Pay Pal gained 4.7 million active registered accounts in the period and ended the quarter with a total of 132 million users, a 17% increase. PayPal's net total payment volume increased 24% to $43 billion driven by consumer and merchant use of PayPal both on and off eBay, according to the company.
In addition, the company said the metric it refers to as “enabled commerce volume” grew 21% for the quarter, to $51 billion, which it said demonstrates the power of the company's global commerce platforms. Mobile capabilities also played a role in the growth as eBay said it attracted three million new customers during the period, a 90% increase. Ebay said its mobile assets and capabilities are delivering innovative, seamless commerce experiences for merchants and consumers across multiscreen shopping environments.
"We had a strong second quarter, with $51 billion of enabled commerce volume across Marketplaces, PayPal and eBay Enterprise, formerly GSI Commerce, driving double-digit revenue and earnings growth," said eBay Inc. president and CEO John Donahoe. "Macroeconomic headwinds in Europe and Korea will continue to be a challenge in the second half of the year. But our core businesses are strong and we continue to attract millions of new customers each quarter through mobile innovation. We remain confident in our ability to meet our goals and drive global commerce innovation and leadership."