Ebay revenue jumps 13 per cent despite worsening competition

Ebay posted a 13 per cent rise in quarterly revenue, as it fended off increasing competition from Amazon. com and a growing number of smaller niche retail websites.

The company reported second-quarter revenue of $4.37 billion, versus $3.88 billion a year ago and the $4.38 billion that Wall Street had expected, on average.

Gross merchandise value, a measure of ecommerce transactions across its main Marketplaces platform, grew 12 per cent, in line with or slightly better than analysts’ forecasts.

Shares in Ebay inched 1.3 per cent higher to $51.35 after hours, from a close at $50.70 on the Nasdaq.

Ebay’s stock has fallen more than 8 per cent since April, hurt by a cyber-attack disclosed in May that compromised data for some 145 million customers, the departure of the highly regarded chief of PayPal, its fastest-growing division, and intensifying competition from both online and offline rivals.

Apart from Amazon, physical retailers are investing to boost their online presence and eBay has to fend off a growing coterie of fast-growing retail upstarts that focus on specific categories such as home and apparel.

Reuters