eBay (EBAY) Expects Earnings To Grow Mid-Single Digits in 2011
eBay Inc. (NASDAQ: EBAY) shared with investors at a company-held meeting a roadmap of its growth plans through 2011.
eBay Inc. continues to rapidly extend its global leadership in online payments through PayPal. John Donahoe, eBay Inc. president and chief executive officer, stressed the enormous potential of PayPal.
"We expect PayPal to become the next leading online global payments network," Donahoe said. The company also provided details of its plans to stabilize and return its eBay Marketplaces business to ecommerce market growth rates.
Based on current business trends and expectations, eBay provided the following financial outlook for 2011:
eBay Inc. connects hundreds of millions of people around the world every day, empowering them to explore new opportunities and innovate together.
eBay Inc. continues to rapidly extend its global leadership in online payments through PayPal. John Donahoe, eBay Inc. president and chief executive officer, stressed the enormous potential of PayPal.
"We expect PayPal to become the next leading online global payments network," Donahoe said. The company also provided details of its plans to stabilize and return its eBay Marketplaces business to ecommerce market growth rates.
Based on current business trends and expectations, eBay provided the following financial outlook for 2011:
- Revenues are expected to reach $10 billion to $12 billion in 2011, up from $8.5 billion in 2008, led by strong PayPal growth, Skype and other ecommerce formats.
- Earnings are expected to grow in the mid-single digit range in 2011.
- Free cash flow is anticipated to be between $6 billion and $7 billion over the three-year period from 2009-2011.
- PayPal is expected to significantly increase revenue to $4 billion to $5 billion, in 2011, up from $2.4 billion in 2008, driven by continued penetration on eBay, strong growth off eBay through its merchant services business and expansion into mobile and non-retail payments.
- The company's eBay Marketplaces business is expected to achieve revenue of $5 billion to $7 billion, in 2011.
- Skype is expected to more than double its revenue to over $1.0 billion in 2011.
eBay Inc. connects hundreds of millions of people around the world every day, empowering them to explore new opportunities and innovate together.
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