eBay Inc. reported second-quarter results that were better than expected, even though the eBay.com marketplace didn't realize the hoped-for surge in growth from recent changes aimed at improving satisfaction for both buyers and sellers.
Revenue for the second quarter increased 6 percent to $2.2 billion compared to the same quarter of 2009. While that number is flat with first-quarter revenue, it surpassed analysts' expectations of $2.16 billion.
Net income of $412 increased 26 percent from the same quarter of 2009, and 3 percent from the first quarter of 2010.
eBay's payments business continues to fuel most of the company's growth. For the third consecutive quarter, PayPal merchant services reported year-over-year growth in excess of 40 percent.
"We delivered strong second-quarter results, demonstrating the global strength and increasing diversity of our business," says John Donahoe, eBay's president and CEO. "PayPal is strong and getting stronger, building a robust and innovative global footprint serving all of e-commerce. And our eBay turnaround remains on track, with strong performance in Europe, significant changes in the U.S. and continued improvements to the buying and selling experience."
Looking ahead, eBay said it expects the Marketplaces business to continue growing strongly in Europe, but that will be offset by slower growth in the U.S. Meanwhile, the weak U.S. dollar is expected to clip eBay's revenue for the remainder of the year.
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Auctiva staff writers constantly monitor trends and best practices of those selling on eBay and elsewhere online. They attend relevant training seminars and trade shows and regularly discuss the market with PowerSellers and other market experts.