360° Coverage : EBay takes 1st quarter loss on tax charge

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EBay takes 1st quarter loss on tax charge

Apr 29 2014, 4:30pm CDT | by

NEW YORK (AP) — EBay recorded a loss in the first-quarter due to a hefty tax charge on foreign earnings, but revenue jumped in part because of its thriving PayPal payments business...

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20 weeks ago

EBay takes 1st quarter loss on tax charge

Apr 29 2014, 4:30pm CDT | by

NEW YORK (AP) — EBay recorded a loss in the first-quarter due to a hefty tax charge on foreign earnings, but revenue jumped in part because of its thriving PayPal payments business.

Adjusted results beat expectations but the company offered weak second-quarter guidance and shares fell 3.2 percent in aftermarket trading.

The results come as PayPal, which eBay bought for $1.3 billion in late 2002, gained 5.8 million new active registered accounts to end the quarter up 16 percent to 148 million.

The business is now growing faster than the company's core marketplaces business: Payments revenue rose 19 percent to $1.85 billion, about 43 percent of total revenue. Meanwhile, marketplaces revenue rose 10 percent to $2.16 billion.

The business also was the subject of an acrimonious tussle between eBay and billionaire activist investor Carl Icahn earlier this month. Icahn, who owns about 2 percent of eBay's shares, said repeatedly that the company should spin off all or part of PayPal. But eBay has said the company is better as a whole.

Icahn ultimately said that he would drop the PayPal strategy and withdraw his proposal to put two nominees on the board. In return, eBay will make David Dorman, chairman of CVS Caremark Corp. and founding partner of Centerview Capital Technology, the 10th independent director on the 12-member board. But Icahn said he still believes eBay should spin off PayPal and said in a statement that he'll seek confidential talks with the company.

Overall, eBay lost $2.33 billion, or $1.82 per share, in the three months that ended March 31. That compares with net income of $677 million, or 51 cents per share, last year. Excluding a $3 billion tax charge, net income totaled 70 cents per share. Analysts expected net income of 67 cents per share.

Revenue rose 14 percent to $4.26 billion from $3.75 billion. Analysts expected $4.23 billion.

For the second quarter, the company expects adjusted net income of 67 cents to 69 cents per share on revenue of $4.325 billion to $4.425 billion. Analysts expect net income of 70 cents per share on revenue of $4.4 billion.

For the year it expects adjusted net income of $2.95 to $3 on revenue of $18 billion to $18.5 billion. Analysts expected net income of $2.99 per share on revenue of $18.25 billion.

Shares fell $1.74, or 3.2 percent, to $52.80 in aftermarket trading. They ended the day up 90 cents at $54.54. The stock is down less than 1 percent since the beginning of the year.

 
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3 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the wo ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" hit ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

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