The UK may no longer be the darling in the world of eBay. eBay’s 2013 Q1 results missed analyst expectations although they just about beat revenue expectations by a single cent and the UK is apparently partly to blame.
Revenues were $3.75 billion, an increase of 14% roughly in line with ecommerce, yielding earnings per share of 63 cents, Analysts had expected $3.77 billion and 62 cents per share, eBay’s guidance for Q2 is lower than expected due to the economy.
The FT says that “eBay blamed macroeconomic conditions in Europe for its slight miss on revenues for the first quarter, and lower-than-expected guidance for the second. Sales in the UK, in particular, were lower than the e-commerce platform and payments company had expected.”
Bob Swan, eBay CFO, explained that sales in Europe had been even slower than the company’s assumptions, which were themselves based on a “somewhat lacklustre” year in Europe in 2012, and the company had also been hit by the weakness of the British pound. However the company is expecting growth in PayPal payments and increasing mobile adoption to rescue their forecasts, although in the second half of the year, not today.
Mobile is becoming increasingly important for eBay with 2.8 million new mobile customers last quarter. eBay customers using mobile buy twice as much as those on traditional computers.
How are your eBay sales holding up? Are you seeing sales static, declining or still growing? What about cross border trade which is still the biggest growth opportunity for UK online retailers.