PayPal Bouys Ebay Q2 Earnings

July 29, 2010

eBay Inc. recently reported Q2 profits rose 26 percent mainly on record performance of its alternative payments unit PayPal. The parent company reported net income of $530.2 million, or 40 cents per share, on revenue of $2.2 billion. PayPal added a million new accounts each month during the quarter and its merchant services business grew 40 percent year-over-year. “PayPal is strong and getting stronger, building a robust and innovative global footprint serving all of ecommerce,” said John Donahoe, eBay Inc. president and CEO. PayPal showed net revenue in the second quarter of 2010 of $817 million, up 22 percent from $669 million during the same time period a year earlier. Net total payments volume for PayPal increased 28 percent from $16.7 million in Q2 2009 to $21.4 million this year. For the full year 2010, eBay said it expects its PayPal business unit to continue its strong performance, with net revenues of approximately $100 million and $0.06 to $0.08 per diluted share.