eBay quarterly results top market expectations

Kasmira Jefford
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EBAY reported better-than-expected quarterly results yesterday driven by demand for its PayPal payment service, and a rise the value of merchandise sold through its main online market place rose.

EBay said its second-quarter net income fell to $283.4m (£175.5m), or 22 cents per share compared with $412m (£255m), or 31 cents a share, in the same period a year earlier.

The decline in earnings, however, was mainly driven by costs from eBay’s acquisition of GSI Commerce earlier this year.

Excluding those costs, stock-based compensation expenses and other items, profit was $630.9m compared with $530m in the previous year.

Revenue in the latest period was $2.8bn, up 25 per cent from the second quarter of 2010 and beating most market expectations.