eBay's profits are up as PayPal drives growth.

eBay's PayPal, the side of the business involved in people paying for goods and a parcel delivery, delivered strong growth for the business, lifting net income by nearly a quarter.

Net income rose by 26 per cent from last year's $327 million (£214 million) to $412 million (£270 million) in 2010.

Revenues for the second three months of the year were up slightly to $2.2 billion (£1.4 billion), a six per cent rise on last year's second quarter growth.

PayPal drove most of the growth, adding over a million new accounts in each month in the quarter.

eBay president and chief executive officer John Donahoe said the strong results showed the diversity of the company.

"PayPal is strong and getting stronger, building a robust and innovative global footprint serving all of ecommerce," he explained.

"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."

eBay posted similarly strong quarterly results for the first three months of the year, with net income rising by 11 per cent on the year before.

Posted Sarah Gower


Article Added: 23/07/2010 09:27:46