Irish eBay subsidiary files €9.7m loss

AN Irish-based subsidiary of US online giant eBay sustained a pre-tax loss of more than €9 million last year, despite increasing its turnover to €50m.

Accounts filed with the Companies Office show that Shopping Epinions International incurred a loss of €9.7m after incurring a pre-tax loss of €17m in 2007. The accounts show that the company increased its turnover by 5% from €48.1m to €50.9m to the end of December last year.

However, the directors’ report accompanying the accounts confirms that the firm’s 12 technology support team positions have been transferred out of its Irish operation.

The directors state that this arose from a strategic decision by eBay in January this year to centralise its catalogue activities in Israel.

The company operates a price comparison website, shopping.com and the filings show that the company’s cost base decreased by 7% from €65.5m in 2007 to €61m last year.

They also show that the company’s cost of salesdecreased from €41.9m to €33.6m while administrative expenses increased from €23.6m to €27.4m.

According to the filings, the Dublin-based company’s principal activity “is that of a premium consumer review platform on the web” and it was described as “a reliable source for consumer insight, unbiased advice, in-depth product evaluations and personalised recommendations”.

Shoppping.com was purchased by US-owned eBay in June 2005.

The accounts show that the Irish arm of the company had accumulated losses of €42m and a deficit in shareholder funds of €17m at the end of 2008.

They also reveal that the company received a capital injection of €24.5m from its immediate parent, Shopping International Holding, in April 2007.

The directors state that the liabilities of the company exceed the total assets, but that the company will continue in operational existence for the foreseeable future, based on the intent and ability of the parent undertaking to provide financial assistance.

The Irish eBay operation was established in 2003 and now employs 1,000 people in this country.

The accounts show that Shopping Epinions International employed 16 people at the end of 2008 — a reduction of two on 2007, with the company’s wage bill last year standing at €764,540

Established in 1995, eBay has its international headquarters in San Jose, California and Salt Lake city, Utah and employs 15,500 staff worldwide.