// Ebay raises full-year profit guidance
// It reported strong growth in Q2 results
// Shares rose nearly 7% to $41.60 (£32.88)
Ebay has raised its full-year profit guidance after it reported a strong growth in its second-quarter earnings, and in turn, its shares raised in late trading.
For the quarter ended June 30, the company’s shares rose nearly seven per cent to $41.60 (£32.88) in extended trading.
Ebay forecast third-quarter adjusted profit from continuing operations in the range of 62 cents to 65 cents per share and revenue of $2.61 billion (£2.06 billion) to $2.66 billion (£2.10 billion).
Ebay’s active buyers increased by four per cent across all platforms, amounting to a total of 182 million global active buyers.
The ecommerce company is currently facing pressure due to competition from rival tech companies including Amazon and Alibaba.
Ebay said it has focused on its promoted listings program and payments business, as well as simplifying its platform for customers to use through the introduction of grouped listings and personal recommendations.
“We remained focused on building our active buyer base, delivering outstanding customer experiences, and accelerating our growth initiatives in the second quarter,” Ebay president and chief executive Devin Wenig said.
During the second quarter, almost one million sellers utilised the promoted listings, resulting in $89 million (£70.33 million) of advertising revenue during the quarter, Ebay said.
Revenue increased two per cent to $2.7 billion (£2.13 billion).
Meanwhile, net income from continuing operations fell to $403 million (£318.39 million) from $638 million (£504.10 million).
Ebay said it had processed over $270 million (£213.32 million) in gross merchandise volume using its new payment platform during the quarter and over 6000 sellers were using it.