PayPal fuels higher eBay revenue despite cyber attack concerns
Published 17/07/2014 | 08:22
EBay posted a better-than-expected 13pc rise in quarterly revenue, a welcome report as investors had been braced for a tough quarter.
Favourable results from its fast-growing PayPal division helped the online retailer overcome increasing competition from Amazon.com and a well-publicised cyber attack.
Ebay's stock has fallen more than 8pc since April, hurt by the cyber attack disclosed in May that compromised data for some 145 million customers.
The departure of highly regarded PayPal chief David Marcus and intensifying competition from both online and offline rivals also put pressure on the company.
Furthermore, a change in Google's algorithm managed to slow online traffic as it pushed eBay results lower in search rankings.
"We had a challenging first half of the year with several distractions," Bob Swan, the chief financial officer, told analysts on a conference call, noting that the cyber attack and the Google search engine changes "had an immediate and dramatic impact."