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Double digit income growth at eBay in Q3

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Leading international e-tail and online auction site eBay highlighted the speed of growth in its m-commerce channel as it reported impressive third-quarter trading results last night.

Net revenue jumped by 32 per cent year-on-year to $2.97 billion (£1.89 billion) for the three months ending September 30th 2011, whilst net income also grew in double digits from $432 million to $491 million over Q3.

Payments saw the biggest increase in revenues of any of the US-based company’s operations over the quarter, experiencing growth of 32 per cent while its marketplaces recorded a rise of 17 per cent compared to the same period last year.

President and CEO of eBay John Donahoe called the performance “strong” and explained how that the rise of shopping via mobiles is aiding the business’s growth.

“Mobile commerce continues to accelerate as consumers change the way they shop and pay,” Donahoe commented.

“We expect eBay mobile commerce to generate almost $5 billion in merchandise volume this year and PayPal mobile to exceed $3.5 billion in payment volume.

“Mobile is one way online and offline shopping are blending into a single commerce environment. We are focused on enabling commerce, helping consumers shop anytime, anywhere, and being the commerce partner of choice for retailers of all sizes.”

Since its launch in 2008, eBay’s suite of mobile apps have now reached 50 million downloads and the firm hopes to generate almost $5 billion in mobile gross merchandise volume this year, more than double the total in 2010.

PayPal, the company’s global payments service, saw more than $3.5 billion in total payment volume (TVP) via mobiles alone during the quarter, up from just $750 million during the same three months last year.

Overall TVP for PayPal was up 31 per cent in Q3, whilst its revenues rose 32 per cent and the number of active users of the service increased 14 per cent to 103 million in the quarter.

Published on Thursday 20 October by Editorial Assistant

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