EBay CEO sees more change ahead after profitable 1st quarter
More change is in store at eBay, its CEO said after the online auction company reported its profit climbed 22 percent in the first quarter despite anger from its sellers over fee and feedback adjustments.
"I anticipate a year that's going to be a fairly vocal year because I think we are going to make a number of changes," Chief Executive John Donahoe told The Associated Press Wednesday, adding that the company could have handled concerns better.
"I think in (the first quarter), we did a good job, not a great job, in the way we engaged with our community," Donahoe said.
Users can expect more rejigging of the fee structure, more refinements to eBay's search functions and more payment guarantee initiatives at PayPal.
The company in the first quarter made several modifications aimed at boosting listings, improving buyers' experiences and freeing the site of fraud. Besides making changes in fees and in the feedback it gathers about buyers and sellers, eBay added a 20-day hold on payments for certain items through PayPal, which drew an outcry from sellers.
The company's growth has slowed amid mounting competition from e-commerce sites like Amazon.com.
But it benefited in the first quarter from the weak dollar and beat Wall Street's expectations. It also raised its outlook for the rest of the year.
EBay reported net income of $460 million, or 34 cents per share, on revenue of $2.19 billion in the quarter that ended March 31. In the year-ago quarter, eBay earned $377 million, or 27 cents per share, on revenue of $1.77 billion.
Excluding one-time items, eBay's net income was $562 million, or 42 cents per share, compared with $460 million, or 33 cents per share, in the first quarter of last year. On that basis, analysts polled by Thomson Financial expected, on average, earnings of 39 cents per share on revenue of $2.08 billion.
More than half of eBay's business including its core online auction, fixed-price and store listings, PayPal, Skype and classifieds takes place overseas. Sales in stronger foreign currencies translate to more dollars for eBay.
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