eBay Q2 Earnings Report: E-Commerce Retailer Weighing The Sale Of StubHub And Classifieds

As eBay (EBAY) announced its second-quarter earnings on Thursday, the e-commerce retailer also revealed that it considering the sale of StubHub and Classifieds as it looks for “the best path forward to maximize shareholder value.”

The announcement from the company follows a commercial agreement with Paytm Mall that will grow its reach into India. eBay said it was “actively reviewing the role and value” of StubHub and Classifieds as it fits within its portfolio.

For the second quarter, StubHub specifically brought in $264 million in revenue; up 7 percent, with Classifieds delivering $271 million in revenue for the quarter; up 5 percent.

eBay’s revenue for the Q2 reached $2.7 billion, an increase of 2 percent on an as-reported basis and a 4 percent increase on a foreign exchange neutral basis. The company’s gross merchandise volume was $22.6 billion, which was down 4 percent.

Other reported earnings from the company included a GAAP net income on continuous operations of $403 million and a Non-GAPP net income from continuing operations of $589 million. Cash flow for the retailer was $744 million, which eBay said accounted for the $1.5 billion repurchase of its common stock and a $120 million cash dividend for the quarter.

eBay also saw a growth in its active buyers of 4 percent across all its platforms to 182 million global active buyers. Performance across its marketplace platforms stood at $2.2 billion in revenue. The retailer saw advertising on its site increase with 940,000 sellers taking advantage of the program, providing 250 million listings and $89 million in revenue.

Going forward, eBay anticipates a net revenue between $2.61 and $2.66 billion for a growth of 1 to 3 percent. Net revenue for the full year is expected to be between $10.75 and $10.83 billion for a growth of 2 to 3 percent, the company said.

"We remained focused on building our active buyer base, delivering outstanding customer experiences, and accelerating our growth initiatives in the second quarter," Devin Wenig, president and CEO of eBay said.

"Managed payments continues to exceed expectations, while first party advertising is providing significant benefits to sellers, and new features are making our marketplace easier to use,” he added.

eBay declared a dividend of $0.14 per share, which will be paid on Sept. 20.

Shares of eBay stock were up 1.90 percent as of market close on Thursday.