Ebay revenue up seven per cent as PayPal spinoff draws near
The figures
Revenues at e-commerce giant Ebay jumped seven per cent to $4.38bn (£2.8bn) in the three months to the end of June , according to a report released today.
The company’s net income fell to $83m, or seven cents per share in the second quarter, from $676m in 2014.
Ebay has announced an additional $1bn share buyback programme.
Why it’s interesting
The e-commerce company’s revenues were boosted by the upcoming spin-off of PayPal, planned for Friday, which has raised investors’ demand for the payment platform.
As part of the split's operating agreement, PayPal will not be allowed to create its own marketplace and eBay will be prevented from implementing its own payment platform.
Ahead of the separation, revenue growth has accelerated both at eBay and PayPal.
What they said
John Donahue, president and chief executive of eBay:
We are very pleased with our overall second quarter performance. PayPal and eBay both delivered strong quarterly results and have strong momentum. Dan, Devin and their respective teams are executing well and are prepared to create the next great chapter for PayPal and eBay
In short
Net revenue is up seven per cent and revenue growth is accelerating at eBay as the company prepares to spin off PayPal on Friday.