eBay 2008 Annual Report Download - page 61

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home and garden, clothing and accessories and tickets having the most significant positive dollar impact when
compared to 2006.
Marketplaces net transaction revenues earned internationally were $2.5 billion in 2008 and 2007 and
$2.0 billion in 2006, representing 54%, 53% and 51% of total Marketplaces net transaction revenues, respectively.
Payments Net Transaction Revenues
Payments net transaction revenues increased $482.0 million, or 26%, in 2008, compared to 2007, which is
consistent with our year-over-year increase in net total payment volume (TPV) of 27%. Payments net transaction
revenues increased due primarily to growth in our Merchant Services business and the increase in PayPal’s
penetration of eBay Marketplaces GMV. Our Merchant Services net TPV experienced 49% year-over-year growth
in 2008 and represented 49% of PayPal’s net TPV in 2008. The increase in our Merchant Services business resulted
from more online merchants, both domestically and internationally, adding PayPal as a payment option.
Payments net transaction revenues increased $436.7 million, or 31%, in 2007 compared to 2006, which is
consistent with our year-over-year increase in net TPVof 33%. Payments net transaction revenues due primarily to
growth in our Merchant Services business and the increase in PayPal’s penetration of eBay Marketplaces GMV. Our
Merchant Services net TPV experienced 59% year-over-year growth in 2007 and represented 42% of PayPal’s
net TPV in 2007. The increase in Merchant Services business resulted from more online merchants, both
domestically and internationally, adding PayPal as a payment option.
Payments net transaction revenues earned internationally totaled $1.0 billion in 2008, $0.8 billion in 2007, and
$0.5 billion in 2006, representing 44%, 42% and 38% of total Payments net transaction revenues, respectively.
International growth in our Payments segment continues to benefit from the expansion of our geographical
footprint, the increase in the number of currencies supported by PayPal and the increase in cross-border payments,
which generate larger fees.
Communications Net Transaction Revenues
Communications net transaction revenues increased $161.2 million, or 44%, in 2008 compared to 2007. The
increase in net transaction revenues was due primarily to our year-over-year increase in SkypeOut minutes of
2.7 billion. The increase in SkypeOut minutes was due primarily to the growth in the cumulative number of Skype
registered users to 405.3 million at December 31, 2008 from 276.3 million at December 31, 2007. The growth in
Skype registered users was primarily due to its marketing activities and strategic partnership initiatives.
Communications net transaction revenues increased $175.5 million, or 93%, in 2007 compared to 2006. The
increase in net transaction revenues was due primarily to our year-over-year increase in SkypeOut minutes of
1.6 billion. The increase in SkypeOut minutes was due primarily to the growth in the cumulative number of Skype
registered users to 276.3 million at December 31, 2007 from 171.2 million at December 31, 2006.
Net transaction revenues from Communications earned internationally totaled $0.4 billion in 2008, $0.3 billion
in 2007 and $0.2 billion in 2006, representing 83%, 84% and 86% of total Communications net transaction
revenues, respectively. Skype revenue is primarily generated in Europe.
Marketing Services and Other Revenues
Marketing services and other revenues increased $195.5 million, or 25%, in 2008 compared to 2007 and
represented 12% of total net revenues in 2008 compared to 10% of total net revenues in 2007. Marketing services
and other revenues growth was due primarily to an increase in text and graphical advertising revenue and an
increase in classifieds revenue, partially offset by a decline in Shopping.com revenue due to the impact of rule
changes made by third-party search engines that adversely affected click-through traffic to retailers from our
Shopping.com website and reduced associated fees. Additionally, a decline in interest rates reduced interest earned
from banks on certain U.S. PayPal customer account balances and negatively impacted revenue growth in 2008. The
decrease in interest earned on certain U.S. PayPal customer account balances was partially offset by interest income
from our Bill Me Later loan portfolio.
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