EBay Inc. said costs tied to the $2.4 billion purchase of GSI Commerce Inc., completed in June, cut into net income in the second quarter. For the quarter ended June 30, eBay earned $283.4 million, or 22 cents per share, down 31 percent from $412 million, or 31 cents per share, a year earlier.
Revenue for the second quarter increased 25 percent to $2.8 billion, compared to the same period of 2010.
Excluding one-time were 46 to 47 cents a share, exceeding Wall Street’s targets by 2 cents. Ebay said the year-over-year increase in second quarter non-GAAP earnings per diluted share was driven by solid top-line growth and productivity.
“Second quarter revenue and earnings were strong, with PayPal surpassing 100 million active registered accounts and reporting its first billion-dollar revenue quarter, and eBay growth in the U.S. accelerating,” said eBay Inc. President and CEO John Donahoe. “We also strengthened our portfolio in Q2 with acquisitions that we believe will more broadly position us to enable the future of commerce. 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.”
The company’s PayPal business delivered strong second quarter performance, expanding its leadership position in global payments. PayPal ended the quarter with 100.3 million active registered accounts, a 15 percent increase year over year. PayPal’s net total payment volume (TPV) grew 34 percent to $28.7 billion in the second quarter of 2011 compared to the same period of last year. PayPal delivered its first-ever billion dollar revenue quarter, driven by strong performance in its Merchant Services business as well as increased penetration on eBay. PayPal continued to demonstrate strength in mobile payments and now expects more than $3 billion in mobile TPV this year, compared to $750 million in 2010.
The company’s Marketplaces business also delivered strong second quarter performance. Gross merchandise volume excluding vehicles (GMV), increased by 17 percent year over year to $14.7 billion. GMV in the U.S. increased 14 percent year over year, the third consecutive quarter of acceleration, driven by improved customer experiences in search and navigation. International GMV increased 19 percent year over year, resulting from stable growth in Europe and improved performance in Korea, as well as positive impacts from foreign currency movements. The Marketplaces business continued to drive innovation in key areas such as mobile, where downloads of eBay’s portfolio of mobile applications
surpassed 45 million globally since the launch of mobile in the third quarter of 2008. The company remains on track to double eBay’s mobile GMV including vehicles to over $4 billion in 2011.
The company completed the acquisition of GSI, a leading provider of ecommerce and interactive marketing services, on June 17, 2011. GSI will operate as a stand-alone business unit. The GSI segment contributed $23.8 million to revenue for the period from June 17, 2011, to June 30, 2011.
