Monday 22 December 2014

Strong PayPal saves eBay quarterly results

Published 18/07/2014 | 02:30

Online payment company PayPal - which is planning to add 400 more jobs to its operation in Ireland - performed strongly to salvage the quarterly results of parent company eBay. Photo: ERIC PIERMONT/AFP/Getty Images
Online payment company PayPal - which is planning to add 400 more jobs to its operation in Ireland - performed strongly to salvage the quarterly results of parent company eBay. Photo: ERIC PIERMONT/AFP/Getty Images

A strong performance from the online payment service 
PayPal, which employs 1,400 people in Ireland, salvaged quarterly results for its parent firm, eBay.

The online auction firm's revenues rose 13pc to €3.2bn ($4.4bn) in the three months from April to June, compared to €2.9bn ($3.9bn) for the same period 12 months earlier.

It recorded a €500m ($676m) profit for the quarter compared with €474m ($640) a year 
ago.

The company had been expected to post weak results due to a succession of setbacks during the year, including a hacking attack that compromised the data of 145 million eBay customers.

Intensifying competition from Amazon.com and the departure of PayPal's boss to Facebook were also expected to present challenges to eBay's progress.

"We had a challenging quarter with several distractions," eBay said in an online investor presentation that accompanied its results.

Algorithm

Some analysts said a change in Google's algorithm in the quarter may also have pushed eBay results lower in search rankings, leading to slower traffic.

Total payment volume leapt a better-than-expected 29pc in the period. Gross merchandise value, a measure of ecommerce transactions across its 
main Marketplaces platform, grew 12pc, in line with or slightly better than analysts' forecasts.

Last month, PayPal announced a plan to add 400 jobs to its call centre in Dundalk.

It said it hoped to increase employee numbers 1,850 by 2018.

Irish Independent

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