Ebay 'Silverware' Thanks to Paypal Service

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The second quarter has an additional 3 million people registered to use PayPal - Photo: AFP

How Ebay 'Silverware' Thanks to Paypal Service Works

In the quarter from April to June, eBay's net profit reached $ 412 million, equivalent to 31 cents per share

EBay said on July 21 that its profits were good in the second quarter of 2010, thanks to more and more people transferring money through PayPal services and making purchases on the eBay website.

According to the Associated Press, the company that specializes in online auction network estimates, the dollar appreciation will affect the company's revenue overseas, because it will convert less USD.

In the quarter from April to June 2010, eBay's net profit reached 412 million USD, equivalent to 31 cents per share, higher than 327 million USD, equivalent to 25 cents per share in the second quarter of 2009.

In total, eBay's revenue increased 6% to $ 2.2 billion, just as analysts forecast. The same quarter last year, eBay's revenue reached 2.1 billion USD.

EBay's revenue growth is mainly driven by online businesses and payments, including PayPal and Bill Me Later short-term credit services. PayPal revenue alone increased 22% to $ 817 million.

The reason for the strong growth of payment services is that more and more consumers and businesses use this method to trade goods online, on eBay or on other websites.

In the second quarter alone, the number of PayPal account registration accounts increased by 3 million, bringing the total number of users to the end of June to 87.2 million.

Evaluation of the current quarter, eBay forecasts profit after adjustment reached 35-37 cents / share, on revenue from 2.13 to 2.18 billion USD. Meanwhile, analysts forecast a post-adjusted profit of 39 cents per share on revenue of $ 2.2 billion.

EBay also lowered its outlook for the whole year, with profit after adjustment of 1.6 to 1.65 USD / share, on revenue of 8.8-9 billion USD. The company's previous forecast was a profit of 1.63 to 1.68 USD / share, on revenue of 8.8 - 9.1 billion USD.