eBay first-quarter revenues up 14 per cent

The online retailer’s UK sales were lower than expected.

New Statesman
Photograph: Getty Images.

The e-commerce platform and payments company eBay has posted revenues of $3.75bn for the first quarter ended 31 March 2013, an increase of 14 per cent compared to the same period last year.

Profits also grew by 14 per cent, while earnings per share were 63 cents on a pro forma basis.

Weak British currency and revenues for PayPal affected the cross-border trade dynamics of the company. Emerging markets are also a factor.

John Donahoe, CEO of eBay, said that users who shop on eBay using mobile devices buy twice as much as those that do not.

The retailer outlined a new three-year plan which includes payment apps that allow people to order and pay for fruit smoothies from their smartphones, then pick them up later in the store. eBay believes such shopping and payment products will help double PayPal revenues by 2015 to $10.5bn.

Apart from integrating its services with LG’s smart television platform, eBay will begin its partnership with Discover Financial Services in the second-quarter.

Bob Swan, CFO of eBay, said: “It was a combination of not just slower traffic, but also a weaker currency.

The company is focusing on the development of its mobile products for growth – it gained 2.8m new mobile customers last quarter, and saw the total download of its mobile apps pass 162m.

The company expects revenues between $3.8bn and $3.9bn, and earnings per share of 61 to 63 cents for the second-quarter of 2013.

For the full year of 2013, the company expects revenue between $16bn and $16.5bn, and earnings per share in the range of $2.70 and $2.75.

Meanwhile, shares fell more than 3 per cent in after-hours trading.