San Jose, Calif. – A $3 billion tax charge on foreign profits resulted in EBay Inc. reporting a net loss of $2.33 billion for the first quarter of fiscal 2013, compared to net earnings of $677 million in the first quarter of the previous fiscal year. Analysts had expected EBay to report net earnings for the quarter, although EBay paid the tax charge in the process of making about $6 billion in offshore cash available.
Dynamic growth in EBay’s PayPal business helped drive a 14% increase in revenue, to $4.26 billion from $3.75 billion, beating analyst expectations of $4.23 billion. During the second quarter of fiscal 2014, EBay expects net revenues of $4.32-$4.42 billion, and net revenues of $18-$18.5 billion in the full fiscal year.
“We delivered a strong first quarter, with enabled commerce volume up 24% and revenue up 14%,” said eBay Inc. president and CEO John Donahoe. “We are committed to delivering sustainable shareholder value and focusing on what matters most to our investors. We are executing our growth plans, capitalizing on the synergies in our portfolio and aggressively executing our $5.0 billion share buyback program. Today, we also announced a non-cash tax charge to facilitate repatriation of $6 billion net in foreign earnings, increasing our available U.S. cash and enhancing our financial flexibility."