Paypal delivers gains to eBay

ONLINE auction house eBay has banged the gavel on a solid fourth quarter which saw revenues increase by over a third to $3.4bn (£2.2bn).

Largely helped by selling its remaining share in Skype, the majority of which was sold in 2009, eBay generated a net income of $2bn in the three months to 31 December.

This contributed to a successful overall year at the online retailer, which rolled in revenues of $11.7bn – a 27 per cent increase on 2010 – and racked up a net income of $3.2bn.

The lucrative fourth quarter was boosted by eBay’s online payments division Paypal, which gained members at a rate of one million new accounts a month in 2011, ending the year with over 106m active users.

For the first time, Paypal generated more revenue overseas than in the US, leading to a growth of 28 per cent.

EBay chief executive John Donahoe said” “We are a different eBay today, no longer just an ecommerce leader but a stronger, more diverse global commerce company shaping the future of shopping and payments.”