SAN JOSE (dpa-AFX) - eBay Inc. (EBAY) said Thursday it expects robust growth in revenues and earnings over the next three years, as the online auctioneer hopes to sustain momentum at its e-commerce and payments service businesses.
The company also hopes to tap the immense potential for mobile commerce, and said that technological prowess on key fronts will play a pivotal role in the long term.
Shares of the company gained more than four percent at the close of markets, and further upped 0.7 percent in the after-hours trade.
eBay has been benefiting from a burgeoning demand for online merchandise. The global e-commerce business is humongous and eBay hopes to see strong growth in its core Marketplaces, PayPal and GSI commerce businesses, despite stiff rivalry from the likes of Amazon.com (AMZN).
For fiscal year 2015, eBay expects revenues to grow over 50 percent to at least $21.5 billion to $23.5 billion, up from $14 billion in 2012.
Compound adjusted earnings per share growth is expected to be 15 to 19 percent annually until 2015.
At PayPal, its online payment service, revenues are expected to be in the range of $9.5 billion to $10.5 billion in 2015, representing a 22 percent compound annual growth rate at the midpoint.
Marketplaces revenues are estimated to range between $10.5 billion and $11.5 billion in that period, denoting a 14 percent compound annual growth rate at the midpoint. This business comprises eBay, Shopping.com, StubHub, eBay Classifieds and other e-commerce sites.
GSI Commerce is expected to achieve revenue growth of $1.5 billion to $1.7 billion in 2015, or a 14 compound annual growth rate at the midpoint.
eBay estimates that in 2015, global e-commerce business will be $300 billion, including through its eBay site and PayPal payments unit, sharply up from $175 billion in 2012.
The company has been recovering ground under the leadership of CEO John Donahoe, who took over the helms in 2008. The company has set its eyes on global expansion, local commerce and mobile applications, and is particularly bullish on prospects in emerging markets as well as the BRIC block, comprising Brazil, Russia, India, and China.
eBay's Marketplace President Devin Wenig told analysts that the company's active user base could touch at least 200 million by 2015, up from 112 million last year. PayPal President David Marcus expects the amount of payments processed to double by 2015. In 2012, PayPal processed payments of $145 billion.
The company also expects to achieve gross merchandise volume, or GSV, of $110 billion target in 2015. A key metric, GSV refers to the total volume in dollars of sales on eBay and eBay-branded trading websites in a given economic period. In 2012, eBay reported GSV of $75 billion.
eBay stock closed Thursday at $54.22, up 4.13%, on a volume of 23 million shares on the Nasdaq. In after hours, the stock gained 0.65%.
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