eBay 2010 Annual Report Download - page 66

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due primarily to growth in consumer and merchant adoption of PayPal. Our Merchant Services net TPV
experienced 42% growth during 2010 and represented 61% of PayPal’s net TPV. The increase in our Merchant
Services business was due primarily to an increase in the number of online merchants offering PayPal as a payment
option, as well as an increase in the share of checkout of PayPal’s existing customer base of merchants.
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 towards larger merchants. 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 earned internationally totaled $1.6 billion, $1.2 billion and $1.0 billion in
2010, 2009 and 2008, representing 49%, 46% and 44% of total Payments net transaction revenues, respectively.
International growth in our Payments segment was primarily due to growth in our Merchant Services business
and increased penetration on eBay Marketplaces platforms internationally.
Communications Net Transaction Revenues
On November 19, 2009, we completed the sale of Skype to an investor group. Accordingly, Skype’s revenue
is not consolidated in our 2010 results. However, Skype’s results of operations are consolidated in our 2008 and
2009 results through the date of sale.
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.
Marketing Services and Other Revenues
Marketing services and other revenues increased $45.5 million, or 4%, in 2010 compared to 2009, and
represented 12% of total net revenues in both 2010 and 2009. The increase in marketing services and other
revenues was primarily attributable to our advertising and classifieds businesses, partially offset by the exclusion
of marketing services and other revenues attributable to Skype.
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 the inclusion of interest income and other fees generated from our
Bill Me Later portfolio of receivables from loans, as well as increased revenues from our classifieds business.
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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