Ebay reports rise in revenues despite password leaks

John Donahoe says eBay's growth was hampered by its global password reset for all users
Ebay revenue rose by 13 per cent in the second quarter, swelling to $4.4bn (£2.57bn), roughly in line with analyst estimates.

The US-listed firm’s net income rose by six per cent in the same period, up to $676m. Shares in the online auction house rose by more than one per cent in after-hours trading following the results.

“In a challenging second quarter, our commerce and payments platforms delivered strong enabled commerce volume growth of 26 per cent,” said eBay’s John Donahoe.

The chief executive also addressed the firm’s security issue, following an attack on its systems which prompted it to ask all customers to change their passwords this May. Donahoe added: “eBay’s growth was hampered by its global password reset for all users.”

The group boasted a 15 per cent boost in active PayPal accounts, and said net total payment volumes were up by 29 per cent for the money transfer service.

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