Online auction powerhouse eBay on Wednesday reported that its revenue climbed, but profit dipped in the recent quarter because of its purchase of interactive services firm GSI Commerce.
EBay said that revenue rose 25 percent to US$2.8 billion while net income was pulled down to US$283.4 million in the fiscal quarter ending June 30 because of charges related to the multibillion-dollar GSI acquisition.
Online financial transactions services unit PayPal topped 100 million active registered accounts and brought in more than US$1 billion in quarterly revenue for the first time, eBay chief executive John Donahoe said in a release.
“We also strengthened our portfolio in Q2 with acquisitions that we believe will more broadly position us to enable the future of commerce,” he said.
EBay stock price drooped more than 2 percent to US$32.43 in after-hours trading that followed release of the earnings figures.
EBay announced in March that it was buying GSI, a provider of electronic commerce and interactive marketing services, for US$29.25 a share or US$2.4 billion.
The San Jose, California-based eBay said the acquisition would be financed with cash and debt and was expected to close in the third quarter of the year.
Donahoe said at the time that the acquisition of GSI “will significantly strengthen our ability to connect buyers and sellers worldwide.”
EBay said it would divest 100 percent of GSI’s licensed sports merchandise business and 70 percent of ShopRunner and Rue La La as part of the acquisition.
GSI has more than 180 customers across 14 merchandise categories, including a number of leading retailers and brands.
Earlier this month, eBay said it had agreed to buy mobile payments provider Zong for US$240 million in cash.
“With Zong, PayPal will have greater ability to offer consumers even more choices in how they want to pay,” PayPal owner eBay said in a statement.
Zong, which is based in Menlo Park, California, offers mobile payments options for digital goods and services in 45 countries.
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