eBay Inc.,the world’s largest online marketplace, reported a drop in second-quarter net income, a sign its acquisition spree is weighing on profits.
eBay reported net income of $283.4 million on revenue of $2.8 billion, a 31 percent decrease in profits against a 25 percent increase in revenue. The company’s profits were dragged down by charges associated with its GSI Commerce for $2.4 billion.
"Second quarter revenue and earnings were strong, with PayPal surpassing 100 million active registered accounts and reporting its first billion-dollar revenue quarter, and eBay growth in the U.S. accelerating," said eBay president and chief executive John Donahoe, in a statement.
PayPal ended the quarter with 100.3 million active registered accounts, a 15 percent increase year over year. PayPal’s net total payment volume grew 34 percent to $28.7 billion in the second quarter of 2011 compared to the same period of last year, the company said.
The company again raised its forecast for the full year. eBay expects adjusted earnings of $1.97 to $2 and revenue of $11.3 billion to $11.6 billion, after it predicted earnings and revenue of $1.93 to $1.97 a share and $10.6 billion to $10.9 billion, respectively, in April.