eBay reports nearly 47% fall in Q4 net profit; full year profit up over 37 times

Global commerce leader eBay has reported a net income of $477 million for the quarter ended 31 December 2015 against a net profit of $1,023 million in the year-ago quarter, registering a 46.6 per cent year-on-year decline in profit.

Net income for the full year, however, was higher at $1,725 million against $46 million in the previous year, recording a growth of 37.5 times.

Net revenue for the fourth quarter of 2015 stood at $2,322 million against $2,323 million in the year-ago quarter. eBay said revenue for the quarter was up 5 per cent on a forex-neutral basis and flat year-on-year on an as-reported basis, driving non-GAAP net income from continuing operations of, or per diluted share, and GAAP net income from continuing operations of, or per diluted share.

During the October-December 2015 quarter, the company generated operating cash flow from continuing operations and free cash flow from continuing operations. It also repurchased its common stock and completed the divestiture of its Enterprise business.

Revenue for the full year stood at $8,592 million against $8,790 million in the previous year.

''We delivered solid fourth quarter results and continued to make progress against our key priorities,'' said president and CEO of eBay, adding, ''The quarter also marked the end of an extraordinary year during which we completed the spin-off of PayPal. We continue to grow our business and customer base while executing our plan to reposition for long-term success.''

Underlying total performance, the marketplace platform delivered of GMV, resulting in in revenue for the fourth quarter, up 1 per cent on an FX-Neutral basis and down 3 per cent on an as-reported basis.

During the 2015 holiday shopping season, the Marketplace platform saw over 265 million transactions across 190 markets, as consumers around the world shopped for great deals and sought-after gifts.

eBay ended the year with strong momentum, driving GMV of in the fourth quarter and revenue, up 34 per cent, aided by strength in the sports and concerts categories. Classifieds delivered another quarter of accelerating growth with revenue of , up 15 per cent on an forex-neutral basis and up 2 per cent on an as-reported basis with strong performance.

For the full year 2015, commerce platforms continued to connect buyers and sellers around the world, with an active buyer base that grew by 8 million, to 162 million total active buyers, representing 5 per cent growth. Total GMV was up 5 per cent on an forex-neutral basis and down 1 per cent on an as-reported basis, reflecting the impact of a strong dollar.

Revenue was, growing 5 per cent on a forex-neutral basis and down 2 per cent on an as-reported basis. The company delivered strong operating and free cash flow on a continuing operations and generating basis, respectively, during 2015.

The results of Enterprise and PayPal are presented as discontinued operations, appearing net of tax in a single line in the company's statement of income.