|Wed Apr 22 2009 16:37:54|
eBay Marketplaces Show 18% YoY Decline
By: Ina Steiner
eBay reported financial results for the first quarter ended March 31, 2009. It posted first quarter revenue of $2.02 billion, a $171.6 million year-over-year decrease it said was caused primarily by the impact of the stronger dollar and the decline of the core Marketplaces business in difficult macroeconomic conditions.
The Marketplaces business unit, which consists of eBay, Shopping.com, StubHub, Kijiji and other ecommerce sites, recorded $1.22 billion in revenue, equating to an 18% year-over-year decline. The revenue drop was attributable to the impact of the strengthening dollar and the decline of the core business in difficult macroeconomic conditions.
Approximately 54% of Marketplaces revenue came from markets outside of the U.S. GMV (excluding vehicles) was $10.80 billion for the quarter, a decrease of 16%, compared to the first quarter of 2008.
Online classifieds revenue increased 23% year-over-year.
eBay Marketplaces continues to focus on stabilizing its core business by improving trust, value and selection for customers while looking for ways to drive growth through geographic, format and category expansion.
PayPal, Classifieds and Skype performed well, delivering year-over-year revenue growth. Text and graphical advertising revenue was flat as compared to the prior-year quarter. The company recorded net income on a GAAP basis of $357.1 million or $0.28 per diluted share, and non-GAAP net income of $499.9 million or $0.39 per diluted share.
"We delivered solid results in the first quarter and moved aggressively to strengthen our portfolio for longer-term growth," said eBay Inc. President and CEO John Donahoe. "With a macroeconomic environment that remains challenging, we are focused on operating discipline and strong execution of our three-year growth priorities in our core ecommerce and online payments businesses."
Source: eBay Press Release