EBay Inc. reported Thursday that revenue grew 7% in the June
quarter, its last that includes results from its PayPal division
before the two businesses split.
Shares of eBay rose 3.2% in premarket trading as adjusted
earnings beat Wall Street expectations and the company also added
$1 billion to its stock-buyback authorization.
The eBay-PayPal split is expected to happen July 17. EBay on
Thursday gave yearly forecasts for the two business after the
split. EBay expects revenue to grow 3% to 5% adjusted for currency
impacts, with adjusted earnings per share falling in the range of
$1.72 to $1.77.
For PayPal, it sees revenue growing 15% to 18% on a
currency-neutral basis and EPS of $1.23 to $1.27.
The company also said it plans to sell its eBay Enterprise unit
to a group led by private-equity firm Permira for $925 million,
confirming a report by The Wall Street Journal from Wednesday
night.
Due to the pending sale of Enterprise, the results of that
segment are presented as discontinued in the latest quarter and
eBay recorded an impairment of Enterprise goodwill of about $786
million.
Overall, the company posted earnings of $83 million, or seven
cents a share, compared with a year-earlier profit of $676 million,
or 53 cents a share. Excluding special items such as the impairment
charge, per-share earnings were 76 cents, up from 70 cents.
Revenue rose to $4.38 billion from $4.1 billion.
Analysts had expected per-share earnings of 72 cents on revenue
of $4.49 billion, according to Thomson Reuters.
In the second quarter, PayPal's net total payment value grew 20%
to $66 billion, with merchant services volume up 27%. Payment
volume through eBay Marketplaces was $14.5 billion. Revenue grew to
$2.26 billion from $1.95 billion a year earlier.
Revenue at eBay's core marketplace was $2.12 billion, down from
$2.18 billion a year earlier, though it would have improved 5% if
adjusted for currency fluctuations.
EBay said its number of active buyers grew 6% in the
quarter.
In a June filing, eBay had said it expected revenue from its
marketplace division—which will comprise the new eBay after the
spinoff of its PayPal payments unit—will remain flat or grow as
much as 5% next year, not including the impact of foreign exchange
fluctuations.
Write to Angela Chen at angela.chen@dowjones.com
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