Profit at eBay Rises 28 Percent
Online auction site eBay’s first-quarter net income was 28 percent up compared to the same quarter last year. The company attributes this earnings growth to a record increase in new visitors together with a 36 percent rise in sales, the online auction house reported on Wednesday.
A pro-forma profit of $0.20 per share was posted, beating analysts’ expectations of earnings per share totalling $0.18. eBay, based in San Jose, California, reported its net income including expenses was $0.19 per share ($256.3 million total), a significant increase compared to $0.15, ($200.1 million) 12 months ago. Net revenue was $1.03 billion for the quarter, compared with $756.2 million for the same period last year.
eBay was reported to be the number 1 online retailer in March. Purchase transactions reached 21.3 million items, equivalent to around 45 percent of total online purchases. eBay exceeded Wall Street forecasts, although the Company had previously missed fourth quarter expectations.
The continued growth in eBay’s market dominance in the auction sector seems to be leading many internet shops which were previously operating on a standalone basis to join eBay where they benefit from the collective internet presence.
But some eBay shops are now starting to form their own off eBay Shops Directory groups to promote their eBay sites. As more independent online retailers join eBay, this trend towards externalised promotion will probably gather pace as the thousands of competing eBay shops struggle for differentiation and market share.
A pro-forma profit of $0.20 per share was posted, beating analysts’ expectations of earnings per share totalling $0.18. eBay, based in San Jose, California, reported its net income including expenses was $0.19 per share ($256.3 million total), a significant increase compared to $0.15, ($200.1 million) 12 months ago. Net revenue was $1.03 billion for the quarter, compared with $756.2 million for the same period last year.
eBay was reported to be the number 1 online retailer in March. Purchase transactions reached 21.3 million items, equivalent to around 45 percent of total online purchases. eBay exceeded Wall Street forecasts, although the Company had previously missed fourth quarter expectations.
The continued growth in eBay’s market dominance in the auction sector seems to be leading many internet shops which were previously operating on a standalone basis to join eBay where they benefit from the collective internet presence.
But some eBay shops are now starting to form their own off eBay Shops Directory groups to promote their eBay sites. As more independent online retailers join eBay, this trend towards externalised promotion will probably gather pace as the thousands of competing eBay shops struggle for differentiation and market share.
