Online auction giant eBay has posted a 26% rise in net income for the second quarter on the back of impressive growth at its PayPal unit.
The group saw net income of $412 million, or 31 cents per diluted share, up from $327 million in Q2 2009. Net revenue was $2.22 billion, up six per cent from $2.10 billion the previous year.
The firm beat street expectations, largely thanks to the continued rise of PayPal, which saw revenue up 22% to $817 million for the quarter.
PayPal added a million new accounts each month during the quarter and its merchant services business has grown by over 40% year over year for three consecutive quarters.
John Donahoe, president and CEO, eBay, says: "PayPal is strong and getting stronger, building a robust and innovative global footprint serving all of ecommerce."
The PayPal success has helped to compensate for "slower than expected" growth for eBay's US business, which is undergoing a "turnaround" plan.
For the full year, eBay expects PayPal to continue its strong performance, resulting in a positive impact to net revenues of around $100 million and $0.06 to $0.08 per diluted share.