Paypal
The last quarter’s profits of internet auction giant eBay have risen dramatically, largely due to impressive growth by its online payment system, Paypal. Net income for the first three months of the year was $476 million, 20 percent more than the figure for a year earlier. Revenues were up 16 percent to $2.55bn. This comes as Ebay approaches the end of its three-year plan to re-energize its business. CEO John Donahoe said, “The year is off to a strong start.”
Donahoe said that eBay’s growth in the United States sharply accelerated, which was driven by Paypal. The number of Paypal users was 16 percent higher than a year before and online sales grew by 8 percent.
Ebay expects revenue from Paypal to be around $4.5bn by 2011, double the present level. The company believes Skype will be a $1bn business by the end of 2011. Skype reported $551 million of sales last year, having experienced 80 percent growth in three years. Ebay’s core auction business is slated to grow more slowly.
Photo: richiemontalbo
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Veronica worked on Wall Street before becoming a business and financial writer. We are fortunate to have such a talented and knowledgeable journalist heading up our business news desk.
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