eBay has announced stronger Q3 profits than anticipated given its recent split with PayPal.
The online marketplace giant beat investor expectations with $2.1 billion in revenue, coming in just above the expected $2.09 billion mark. Earnings of 43 cents per share, meanwhile, are better than the expected 40 cents per share.
This is the first quarterly report from eBay since it split from its online payment arm, PayPal. The two companies formerly split on July 20, but the move was signalled around this time last year in order that both companies might “capitalise on their respective growth opportunities.”
In particular, it’s thought that the split was designed to free up PayPal to compete better in the thriving online and mobile payment market. Many investors believed that a strong, independent PayPal was needed in light of fresh competition from the likes of Apple Pay, not to mention renewed online efforts from various established financial institutions like Visa.
Related: Android Pay vs Apple Pay
eBay’s fortunes, however, were always less certain – particularly in a world where Amazon exists and continues to invest heavily. Sure enough, even with these better-than-expected financial figures, eBay’s revenue is down two percent year-on-year.
As TechCrunch puts it, eBay’s core business is stable, but it seems unlikely to experience any exciting growth any time soon.
Next, see how we got on with Apple Pay when it arrived in London earlier this year: