eBay doubles income in the second quarter

Published:  19 Jul at 11 AM

Internet auction site and retailer eBay has announced that in the second three months of the year its income doubled compared to the second quarter of 2011. Net income for the company was $692 million compared to $283 million a year earlier.

Revenue was also up above the expectations of analysts to $3.4 billion which was an increase of 23 per cent. A prediction that earnings for the third-quarter were likely to be lower than anticipated did not prevent eBay shares from gaining five per cent.

The company said that marketplaces business had grown faster than it has since 2006. Money is generated in the marketplaces through fees charged to potential sellers who have items listed on the eBay sites.

Revenue also comes from PayPal, the online payment system used by eBay, which charges customers every time a transaction is made. The payment business is planning to expand into physical stores as well as mobile devices.

At the end of June the number of active accounts being operated by PayPal stood at 113.2 million. This is 13 per cent more than a year earlier. Last month, Devin Wenig, eBay executive, said that the business was currently growing at a rate of 10 per cent every year.