eBay Posts Strong Q2 Despite Drop in Net Income

Marketplaces, PayPal spur growth, acquisition lowers profits.

by Auctiva.com staff writer
- Jul 21, 2011

Though eBay experienced a drop in net income during this year's second quarter, the company had strong numbers, eBay officials said on Wednesday.

Revenue reached $2.8 billion, a 25-percent year-over-year increase compare to last year's $2.2 billion total. However, the company's net income decreased by 31 percent to $283 million. Part of the drop was due to charges related to the $2.4 billion acquisition of GSI Commerce, says John Donahoe, eBay's President and CEO.

Yet, despite the drop, eBay had a strong quarter, and the company's recent acquisitions will help eBay "more broadly position [itself] to enable the future of commerce," Donahoe notes.

"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," he continues.

eBay Marketplaces had a good second quarter, with gross merchandise volume growing by 17 percent from $12.5 billion during 2010's second quarter, to $14.7 billion this year. In the U.S., GMV increased 14 percent and 19 percent internationally, eBay reports.

PayPal also did well, surpassing 100 million active registered accounts during Q2, and ending the quarter with 100.3 million registered accounts. That's a 15-percent increase compared to 2010's second quarter. This year's second quarter also gave PayPal its first billion-dollar quarter.

About the Author

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.

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