Operating margin decreases to 19.8%
eBay has reported revenue of $2.2 billion for the third quarter of 2009, an increase of 6% compared to $2.1 billion in the same period last year primarily driven by the continued growth in PayPal, Skype, classifieds business and fixed-price format.
The payments business unit reported revenue of $688.1m, an increase of 15% year-over-year. The marketplaces business unit, which consists of eBay, Shopping.com, StubHub, Kijiji and other e-commerce sites, recorded $1.4 billion in revenue, a 1% year over year decline. Skype, which comes under communications business unit, contributed $185.2m in revenue for the quarter, representing 29% year-over-year growth.
Operating margin decreased to 19.8% for the quarter, compared to 24.7% for the same period last year. The company said that the decrease in operating margins was caused primarily by the recently acquired Bill Me Later, the weaker US dollar, and its continuing shift to faster growing, lower margin businesses, partially offset by cost controls.
For the quarter, net income was $350m, or $0.27 per diluted share, compared to $492m, or $0.38 per diluted share in the prior year quarter.
John Donahoe, president and CEO of eBay, said: “Our third quarter results were strong with PayPal gaining momentum and market share worldwide and our core eBay business showing positive trends. We’re delivering on our commitments, executing on our plans and operating smarter and faster.”
For the fourth quarter of 2009, eBay expects net revenues in the range of $2.2 billion to $2.3 billion with earnings per diluted share in the range of $0.28 to $0.3.