eBay records profits rise
eBay has reported profits of $676 million between March and June.
Shares in the online retailer eBay are up 1.46 per cent after the company announced an increase in profits.
The internet auction site saw profits of $676 million (£395 million) between March and June going beyond the expectations of many analysts. However, it has not been without its challenges which was noted with a significant dip on revenue predictions. The company did record an increase of 13 per cent but it was still $4.4 billion shorter than what the retailer was expecting.
Ebay has endured a challenging year with pressure from the likes of Amazon.com Inc and a well-publicised cyber attack. In May, eBay urged users to change their passwords after its database was hacked between late February and early March. The breach of the company's security had meant encrypted passwords and other non-financial data had been put at risk.
While the company was quick to highlight there was no evidence of unauthorised activity on its members' accounts. It added that changing the passwords was "best practice and will help enhance security for eBay users". Despite the quick action taken on a security eBay's operations were still hampered.
John Donahoe, eBay's chief executive, explained that the cyber attack had "clearly impacted eBay's performance" during the second quarter of the year but that the performance in the opening part of the year was in line with its expectation. The online retailer has committed to investing more on measures to entice users back this will include coupons, seller incentives and increased marketing.
One of the driving forces behind eBay's increase in revenues has been its fast-growing PayPal division. The system is used as the go-between for users paying and selling products online holding their money in safe and secure place before the transaction is complete and is an alternative to direct card payments.
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