Online auction portal eBay posted net income of $ 2.374 billion in the first quarter, a decrease of 2% yoy.
The company reported that its net market transaction income increased during the three months ended March 31, 2020 compared to the same period in 2019, primarily due to growth in promoted listing rates and a higher acceptance rate, partially offset by additional credit provisions recognized in light of the current economic environment driven by COVID-19.
Overall, eBay is a world leader in commerce, which includes its Marketplace and Classifieds platforms. Founded in 1995 in San José, California, it connects millions of buyers and sellers worldwide, empowering people and creating opportunities.
The company’s technologies and services are designed to offer buyers a wide variety of relevant inventory and options, and enable sellers worldwide to organize and offer their inventory for sale, virtually anytime, anywhere.
eBay, other indicators
The company generated cash flow from continuing operating activities of $ 702 million during the three months ended March 31, 2020, compared to $ 572 million in the same period in 2019.
In addition, during the first quarter, the company issued $ 1 billion debt and paid $ 4 billion to repurchase its common shares, in addition to $ 114 million in cash dividends.
The market transaction acceptance rate was higher during the three months ended March 31, 2020 compared to the same period in 2019, mainly due to the growth in promoted listing fees, which together with the final value fees were calculated as a percentage of the sale price and category of a mixed item.