eBay announced second-quarter 2010 earnings on Wednesday. Revenue increased 6% year over year to $2.2 billion. eBay said its the multiyear turnaround of its eBay business continued on track in the second quarter (GMV for its total Marketplaces business was up 13%) with strength in Europe, expected performance in Asia, and slower than expected growth in the U.S. (GMV was up only 2% for the U.S. Marketplace business).
eBay reported "progress against underlying customer metrics focused on trust, value and selection for the world's largest online marketplace."
In a presentation to analysts, eBay said its Marketplaces turnaround remains on track: "Solid sold items growth, partially offset by lower ASPs."
GMV from fixed-price formats was 59% of total GMV, a record for eBay whose roots are in the auction format.
PayPal net revenue was up 22% year over year to $817 million; net total payments volume was up 28%, while merchant services net total payment volume was up 43% - the third consecutive quarter that its merchant services business has grown by over 40% year over year.
eBay's PayPal business added a million new accounts each month during the quarter, and its merchant services business continued to gain share in ecommerce.
"We delivered strong second quarter results, demonstrating the global strength and increasing diversity of our business," said John Donahoe, eBay President and CEO. "PayPal is strong and getting stronger, building a robust and innovative global footprint serving all of ecommerce. And our eBay turnaround remains on track, with strong performance in Europe, significant changes in the U.S. and continued improvements to the buying and selling experience. We continue to focus on delivering strong financial results, managing a healthy balance sheet and making the necessary investments to compete, win and satisfy our customers."
eBay estimates full year 2010 net revenues in the range of $8.8 billion to $9.0 billion, representing growth of 9% to 11% compared to 2009, excluding Skype.
See related story, "eBay to Tweak U.S. Search after Domestic Market Disappoints in Q2" - link to article
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