Ebay’s shares rally nearly 7% after revenue rise
Ebay has raised its full year profit forecasts after posting a jump in revenues for its first quarter results, as its activist investors continue to make changes.
In the quarter ending March 31, Ebay reported a net revenue rise of 2.4 per cent to $2.64 billion (£2.04 billion) coming comfortably above analyst expectations of $2.58 billion (£1.99 billion).
Its active buyers also grew by four per cent to 180 million during the period, despite its gross merchandise volume falling 4.2 per cent to $22.59 billion (£17.47 billion).
Meanwhile its core marketplace business saw reported growth of three per cent, while its StubHub subsidiary saw sales remain largely flat at 230 million dollars and its classified business saw revenues jump four per cent to $256 million (£197.9 million).
Ebay has raised its guidance for the full year, expecting revenues to rise between two and three per cent to $10.83 billion (£8.37 billion) and $10.93 billion (£8.45 billion).
The news has sent Ebay’s shares jumping nearly 7 per cent, continuing the upward trend of around 30 per cent since activist investors Elliott Management and Starboard acquired a stake in the company and laid out plans to reinvigorate the ecommerce giant.
The plans include offloading its subsidiary businesses including StubHub and Gumtree, while its chief executive is looking towards advertising to drive growth.
“Our initiatives to create a next generation payment and advertising experience are on track, we saw healthy buyer growth and disciplined cost control, and we continue to simplify the buying process while remaining focused on seller’s success,” Ebay chief executive Devin Wenig said.