eBay 2009 Annual Report Download - page 64

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Payments Net Transaction Revenues
Payments net transaction revenues increased $320.7 million, or 14%, in 2009 compared to 2008. The
increase was due primarily to net TPV growth of 19% in 2009 compared to 2008, partially offset by lower take
rates due primarily to a shift in merchant mix. The increase in net TPV during 2009 was due primarily to growth
in consumer and merchant adoption of PayPal and the inclusion of Bill Me Later (acquired November 2008). Our
Merchant Services net TPV experienced 34% growth during 2009 compared to 2008 and represented 55% of
PayPal’s net TPV. The increase in our Merchant Services business was due primarily to an increase in PayPal’s
revenue from its existing customer base of merchants as well as an increase in the number of online merchants
offering PayPal as a payment option.
Payments net transaction revenues increased $482.0 million, or 26%, in 2008 compared to 2007. This
increase was consistent with Payments’ year-over-year increase in net 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, representing 49% of PayPal’s net TPV. The increase in our Merchant Services business resulted
from a greater number of online merchants, both domestically and internationally, adding PayPal as a payment
option.
Payments net transaction revenues earned internationally totaled $1.2 billion in 2009, $1.0 billion in 2008,
and $0.8 billion in 2007, representing 46%, 44% and 42% of total Payments net transaction revenues,
respectively. International growth in our Payments segment continues to benefit from an increase in PayPal’s
revenue from its existing customer base of merchants and an increase in the number of online merchants offering
PayPal as a payment option as well as an increase in cross-border payments, which typically generate larger fees.
Communications Net Transaction Revenues
Communications net transaction revenues for 2009 represent Skype activity from January 1, 2009 through
November 19, 2009 (the completion date of the sale of Skype), compared to a full year of Skype activity in 2008.
Communications net transaction revenues increased $49.3 million, or 9%, in 2009 compared to 2008. The
increase in net transaction revenues was due primarily to a year-over-year increase in total SkypeOut minutes.
Following our sale of Skype on November 19, 2009, we have accounted for our approximately 30% equity
interest in Skype’s business on the equity method. See “Note 4 – Sale of Skype” in our consolidated financial
statements included elsewhere in this report.
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 a year-over-year increase in total SkypeOut minutes.
Communications net transaction revenues earned internationally totaled $0.5 billion in 2009, $0.4 billion in
2008 and $0.3 billion in 2007, representing 82%, 83% and 84% of total Communications net transaction
revenues, respectively. Skype revenue was primarily generated in Europe.
Marketing Services and Other Revenues
Marketing services and other revenues increased $65.3 million, or 7%, in 2009 compared to 2008, and
represented 12% of total net revenues in both 2009 and 2008. The increase in marketing services and other
revenues during 2009 was due primarily to interest income and from the inclusion of fees generated from our Bill
Me Later portfolio of receivables from loans (acquired November 2008) and a revenue increase from our
Classifieds business, primarily attributable to Den Blå Avis and BilBasen (acquired October 2008). These
increases were partially offset by a decrease in Shopping.com revenue related to the impact of rule changes made
in the third quarter of 2008 by third-party search engines that adversely affected click-though traffic to retailers
from our Shopping.com website and reduced associated fees, as well as a decline in interest income earned on
certain PayPal customer account balances resulting primarily from decreased interest rates.
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