Reuters: Technology News: EBay sets aggressive 2015 target, shares climb

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EBay sets aggressive 2015 target, shares climb Mar 28th 2013, 18:26 eBay Inc President and CEO John Donahoe speaks during a hi-tech industry conference in Jerusalem September 11, 2012. Credit: Reuters/Ronen Zvulun By Alistair Barr SAN FRANCISCO | Thu Mar 28, 2013 1:30pm EDT SAN FRANCISCO (Reuters) - EBay Inc aims to handle $110 billion of sales volume on its marketplace in 2015 by expanding globally, getting more local inventory online and using mobile technology to engage more with shoppers, executives said on Thursday. The new forecast, made by Devin Wenig, president of eBay's Marketplaces business in North America, compares with Gross Merchandise Volume, or GMV, of $75 billion in 2012. GMV is a closely watched measure of eBay's performance. Doug Anmuth, an analyst at J.P. Morgan, was expecting 2015 GMV of $101 billion. After bleeding market share to Amazon.com Inc for years, Chief Executive John Donahoe began a turnaround effort in 2009 that set the Internet commerce company back on track by borrowing from its larger rival's playbook. He took what was then a muddled auctions website and made it easier for shoppers to buy new items at fixed prices and get more free shipping and returns - essentially mimicking the Amazon experience. He also embraced mobile technology, creating shopping apps for smartphones and tablets that brought in new customers. But eBay's online marketplace is still growing less than Amazon's and some analysts are concerned its growth may struggle to keep up with the overall expansion of the online retail sector. On Thursday, Wenig told analysts and investors that the Marketplaces business will deliver "at least" market rates of growth. "They are saying they have fixed the core marketplace, and they are now positioned to drive incremental growth from local, mobile and global initiatives," said Colin Sebastian, an analyst at R.W. Baird. CEO Donahoe said that the company would enable $300 billion of commerce in 2015, up 71 percent from $175 billion in 2012. That forecast includes sales on eBay's online marketplace, payments processed by PayPal and other transactions touched by the company's various businesses, such as GSI Commerce. "That's one of the ways we will measure our success," Donahoe said during eBay's investor day at its headquarters in Silicon Valley. To get this done, eBay is focusing on three main sources of potential growth - global expansion, local commerce and mobile applications that it hopes will encourage consumers to shop more on its marketplace and use PayPal more to pay for those purchases. EBay is aiming to increase sales in emerging markets and BRIC countries - Brazil, Russia, India and China, by four times current levels in three years, Wendy Jones, an executive overseeing the global push, said. By the end of 2015, as much as 25 percent of eBay active users and over 12 percent of global sales will come from BRIC countries and emerging markets, she added. EBay's top executives will give other, new three-year financial forecasts later on Thursday. Expectations run high on Wall Street. Anmuth of J.P. Morgan, is expecting revenue of $21.16 billion in 2015 and earnings of $3.98 per share that year, versus $14 billion and $2.36 a share in 2012. The analyst is also calling for 2015 PayPal transaction volume of $246.9 billion that year. (Reporting by Alistair Barr; Editing by Lisa Von Ahn, Tim Dobbyn, and Kenneth Barry) Link this Share this Digg this Email Reprints

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