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eBay soared to higher net profits and incomes due to the strength of PayPal’s business. This comes after the company’s executives negotiated a three-year plan that will improve the company’s core auction business. The revenue of eBay was reported $2.2 billion with a net income of $397.7 million. These figures exclude the impact of Skype business of eBay. The net income increased by 11 percent whereas the revenue increased by 9 percent.
The payment business of eBay which includes PayPal and its other related services reported an increase of 35 percent, amounting to $21.3 billion in total payment for the quarter. The revenue from the business grew about 26 percent to $809.3 million. Around $13.4 billion were recorded from the company’s Marketplaces business unit which comprises of StubHub, Shopping.com, eBay Classifieds, eBay, and other e-commerce sites. This was a 24 percent increase, whereas the actual revenue was around $1.4 billion which grew by 13 percent for the quarter.
Recently, the auction structure of eBay was revamped by them, which encourages the sale of low-price auctions to be done at a fixed rate, and cutting the fees for sellers. eBay is all set to make further changes which will take place in March and September. In a conference call with analysts, John Donohoe, eBay's chief executive, said that 2010 is off to strong profits and added that they had achieved a great deal in the first quarter. He also informed that the growth came from mobile business. The mobile payments recorded in the first quarter were equal to the 2009 figures. In the first three weeks, the PayPal’s mobile apps were downloaded around million times.
Donohoe also said that eBay continues to drive new users to PayPal. eBay has also launched fashion.ebay.com, within its auction business with an estimated $5 billion in total shopping volume predicted this year. Even eBay’s mobile app was downloaded thousands of times, which generated around $1.5 billion.
