EBay revenue up 25%, driven by PayPal
EBay's second-quarter revenue increased 25% to $2.8 billion, compared with the second quarter of 2010. The San Jose, Calif.-based company's net income decreased 31% year-over-year to $283.4 million.
Operating expenses increased 36% to $1.47 billion in the quarter, compared with Q2 2010, driven mostly by lingering expenses from the GSI Commerce, Zong and Magento acquisitions. Sales and marketing expenses grew by 27% to $607.9 million, compared with the same quarter of last year.
“Q2 was a strong quarter for eBay,” said John Donahoe, president of the company. “We intend to compete and lead in the new retail global environment…In this new retail world, consumers expect a seamless experience across multiple channels.”
PayPal revenue grew 31% in the quarter to $1.07 billion, compared with last year. The payments business ended the quarter with more than 100.3 million active registered accounts, a 15% increase compared with the same period of last year. PayPal's net total payment volume grew 34% to $28.7 billion in the second quarter of 2011, compared with the prior year.
“PayPal hit two milestones. It recorded its first billion-dollar revenue quarter and 100 million active users,” said Donahoe. “PayPal provides a powerful foundation for attractive sustainable growth. While others talk about the power of mobile payments, PayPal delivers. We expect mobile payments volume to exceed $3 billion this year.”
The company's GSI Commerce acquisition closed June 17. The new division contributed $23.8 million to eBay's revenue for the period ending June 30. GSI Commerce named Tobias Hartmann CEO of its global operations organization on June 1.