Ebay sales forecast tops an­a­lyst es­ti­mates

The Pak Banker - - 6BUSINESS -

EBay Inc. (EBAY) forecast 2015 sales that topped an­a­lysts’ es­ti­mates and said it ex­pects the to­tal vol­ume of mer­chan­dise sold in its mar­ket­place to reach $110 bil­lion by that year as the on­line re­tailer adds users and mo­bile tools.

Rev­enue in 2015 will be $21.5 bil­lion to $23.5 bil­lion, the com­pany said yes­ter­day at a meet­ing with an­a­lysts in San Jose, Cal­i­for­nia. An­a­lysts on av­er­age had es­ti­mated sales of $21.4 bil­lion, ac­cord­ing to data com­piled by Bloomberg.

Chief Ex­ec­u­tive Of­fi­cer John Don­a­hoe is adding features, in­clud­ing mo­bile ap­pli­ca­tions and a lo­cal-shop­ping tool un­veiled yes­ter­day, to main­tain a turn­around ef­fort that has helped boost shares 75 per­cent since he took the helm from Meg Whit­man in 2008. He’s aim­ing to sus­tain the pace of sales growth — 21 per­cent last year — and keep EBay rel­e­vant as it com­petes with the largest Web re­tailer, Ama­zon.com Inc. (AMZN) “In­vestors want to know that there is a road map for strong growth, and man­age­ment is de­liv­er­ing that mes­sage,” said Colin Se­bas­tian, an an­a­lyst at Robert W. Baird & Co. “They are lay­ing out mul­ti­ple in­cre­men­tal growth op­por­tu­ni­ties, in­clud­ing lo­cal com­merce, global ex­pan­sion and, of course, mo­bile.” The shares rose 4.1 per­cent to $54.22 at yes­ter­day’s close in New York. The stock has ad­vanced 6.3 per­cent this year, com­pared with a 10 per­cent gain for the Stan­dard & Poor’s 500 In­dex.

By the end of 2015, 25 per­cent of users will be in de­vel­op­ing re­gions, EBay said yester- day. As part of a push into new mar­kets, the com­pany said it de­buted a Rus­sian-lan­guage site two weeks ago. The coun­try posted a 75 per­cent surge in EBay users last year.

“We are spend­ing ag­gres­sively,” said Wendy Jones, vice pres­i­dent of ge­o­graphic ex­pan­sion and cross-bor­der trade. “First pri­or­ity is Rus­sia — it’s a big mar­ket, but it’s su­per- frag­mented, and we were al­ready the mar­ket leader. We have some wind in our sails in a very frag­mented mar­ket. So we be­lieve we have a win­dow of op­por­tu­nity.”

EBay has split emerg­ing mar­kets, in­clud­ing China, Rus­sia and Latin Amer­ica, into a sep­a­rate di­vi­sion and has be­gun by work­ing on a lo­cal­ized ap­proach to Rus­sia, start­ing with the new na­tive-lan­guage site.

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