What recession? eBay profit soars 22% as ecommerce goes from strength to strength
Revenue at the online auction giant eBay for the third quarter to September 30 jumped 15% to $3.4 billion, compared to the same time 2011.
Net profit on a GAAP basis was $597 million – up a massive 22% y-o-y or $0.45 per diluted share. Non-GAAP profit was $718 m. Margin in three businesses including PayPal and Marketpalce also expanded year-over-year.
“We had a great third quarter across our company, with Marketplaces and PayPal accelerating customer growth,” said John Donahoe, eBay CEO.
“Mobile continues to be a game changer for us,” he said as downloads of eBay’s mobile apps have now surpassed 100 m globally.
eBay’s Marketplaces is also booming with revenue up almost 10%, user growth rising, with growth in the US and Asia Pacific.
Growth was driven by mobile, items sold up almost 20%, with 800,000 new users coming to the site via mobile, and strong performance in key verticals, eBay confirmed.
“With our strong portfolio and global reach, we are consistently demonstrating our capabilities to help consumers shop anytime, anywhere. And we are enabling retailers of all sizes to compete in a rapidly evolving, multichannel commerce environment,” said Donahoe.
There are hundreds of Aussie based retailers and distributors using eBay’s Marketplace ecommerce platform to sell goods in Australia, with local retailers accounting for 82 percent of eBay sales in Australia
Its globally used e-payments business PayPal enjoyed a strong third quarter revenue as it increased 23% year over year and net total payment volume grew 20% year over year to $35.2 billion.
PayPal now has 117.4 m active accounts, a 14% increase in 12 months.
Looking to Q4 eBay expects revenues to jump to $3,8- $4,0 million during the busy Christmas period.