Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Lifestyles
Classified Sites

The Canadian Press - ONLINE EDITION

EBay 4th-quarter earnings, revenue grow, company gets Icahn proposal to spin off PayPal

This Tuesday, July 16, 2013 photo shows an eBay sign at eBay headquarters in San Jose, Calif. Ebay Inc. reports earnings after the U.S. stock market closes on Wednesday, Jan. 22, 2014. (AP Photo/Ben Margot)

Enlarge Image

This Tuesday, July 16, 2013 photo shows an eBay sign at eBay headquarters in San Jose, Calif. Ebay Inc. reports earnings after the U.S. stock market closes on Wednesday, Jan. 22, 2014. (AP Photo/Ben Margot)

NEW YORK, N.Y. - EBay said Wednesday that its earnings and revenue grew in the last three months of 2013, driven by a strong holiday season for its e-commerce site and its fast-growing payments business, PayPal.

The company also said activist investor Carl Icahn is seeking a non-binding shareholder resolution to spin off PayPal. EBay said the billionaire investor has nominated two of his employees to the company's board and now owns a stake of 0.82 per cent in the San Jose, Calif.-based company.

Shares of eBay rose $2.99, or 5.5 per cent, to $57.40 in extended trading.

But eBay said it has looked into a split and does not believe it would be the best move for shareholders. CEO John Donahoe said in a letter to employees that spinning off PayPal is also not a new idea, and that "we must not let Mr. Icahn's proposals become a distraction."

In an interview, Donahoe said eBay has helped propel PayPal's success, by not only generating new users, but by sharing data that helps PayPal manage risk. EBay also accounts for more than half of PayPal's profits, which helps it pursue innovation and new opportunities.

Icahn offered little detail why his proposal made sense, Donahoe said.

"I wouldn't say there is any in-depth articulation of rationale other than splitting apart the company will create shareholder value," he said. Donahoe said he will pass on the Icahn's nominations to the board, but said they'll be held up against its already "world-class" members.

Icahn did not immediately respond to messages seeking comment.

PayPal, which eBay bought for $1.3 billion in late 2002, is now growing faster than the company's core marketplaces business. Payments revenue of $1.84 billion accounted for about 41 per cent of the quarter's total revenue. Recently, PayPal has been expanding into brick-and-mortar stores from serving solely as an online payments service.

Overall, eBay Inc. earned $850 million, or 65 cents per share, in the October-December period. That's up 13 per cent from $751 million, or 57 cents per share, a year earlier.

Adjusted earnings were 81 cents per share, beating analysts' expectations by a penny.

Revenue grew 13 per cent to $4.53 billion from $3.99 billion. Analysts surveyed by FactSet had expected revenue of $4.55 billion.

For the current quarter, which ends in March, eBay is forecasting adjusted earnings of 65 cents to 67 cents per share on revenue of $4.15 billion to $4.25 billion per share.

Analysts were expecting higher earnings of 72 cents per share on revenue of $4.3 billion.

___

Business Writer Ryan Nakashima in Los Angeles contributed to this report.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Submit a Random Act of Kindness
Why Not Minot?
Welcome to Winnipeg

Social Media