Feeds

eBay revenue shrivel hits nine month mark

Shrinking bread and butter

The essential guide to IT transformation

eBay's bread-and-butter marketplace business is still shriveling.

During the quarter ending June 30, the company pulled in revenues of $2.1bn, a 5 per cent decline from the quarter last year, and as usual, the culprit was the marketplace unit, where revenues dropped 14 per cent year-on-year.

At the end of 2008, for the first time in its history, eBay stomached a year-over-year decline in quarterly revenue. And now it has happened three quarters in a row.

Gross merchandise volume - a measure of all transactions on eBay.com - dipped 10 percent to $11.13bn.

But during a conference call with industry analysts and reporters, CEO John Donahue called the company's latest quarter "solid," saying "we're moving in the right direction, a strong company getting stronger."

Certainly, revenues continue to grow for the company's PayPal-centered payments unit and its lame-duck Skype unit. The payments unit chipped in $669.3m in revenues, an 11 per cent increase, while communications contributed $170m, a 25 per cent leap.

And though overall profits dipped to $327.3m, a 29 per cent drop from last year, the company managed to beat the guesses of those Wall Street guessmen if you exclude certain one-time charges and stock option expenses. eBay shares were up 2.75 per cent in after-hours trading.

Naturally, Donahue blamed some of those marketplace struggles on a weak economy and a strong dollar. And he assured investors that the company is still on track to meet his three-year growth plan.

Though eBay is attempting to spin-off Skype, Donahue and crew have said that by 2011 its marketplace unit - which includes eBay.com, Shopping.com, StubHub, Kijiji, and other e-commerce sites - will account for only 30 to 40 per cent of the company's entire business.

Today, the company did say that its marketplace biz is "stabilizing." Its year-over-year decline did at least slow down during the second quarter, and its classifieds unit continues to grow, with revenues expanding 19 per cent.

But clearly, as it continues to turn its back on mom and pop sellers, eBay is moving away from classic auction fare. During the quarter, the number of fixed-price items rose 19 per cent, while auction numbers continued to decline (if less than in Q1).

Much of eBay's future lies with PayPal. Tomorrow, the company will officially open the platform to third-party developers, hoping to "fuel payments innovation beyond ecommerce." A sensible move. As Amazon will surely show with its second-quarter earnings, it's more than just the economy that's eating away at the eBay marketplace. ®

Next gen security for virtualised datacentres

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?