PayPal Europe profits up by 24%

PRE-TAX profits at the main Irish company of US-owned e-commerce firm, PayPal increased last year by 24% to €5.7 million as it increased its Irish workforce to 1,246.

Accounts just returned to the Companies Office show that PayPal Europe Services Ltd last year increased its pre-tax profits after revenues increased by 25% from €73.5m to €91.7m in the 12 months to the end of December last.

The company has its European HQ in Blanchardstown, Dublin, where it hosts PayPal’s European customer services and financial services functions for the European market.

Earlier this year, PayPal announced its decision to expand its Irish operations when it announced the creation of a further 150 jobs at its European HQ. The figures show that the company increased the numbers it employed in 2010 from 987 to 1,246 — an increase of 259.

According to the directors’ report, they state that: “despite the continued unfavourable macro economic environment, the outlook for 2011 remains positive as the Paypal Group plans to grow at a faster pace than ecommerce”.

The directors state that they are satisfied with the performance at the company, which is broadly in line with expectations.

The report continues: “In 2011, the company will continue to focus on delivering superb end to end customer experience, support the growth of eBay’s marketplaces and its merchant service business by driving both merchant acceptance and consumer preference.”

The report reveals that PayPal “continued its relationship with IDA Ireland in 2010 to further develop its centre of excellence to drive innovation in PayPal’s operations”.

PayPal was purchased by E-Bay for $1.5bn in 2002, while Paypal Europe Services Ltd was incorporated in Ireland in 2006.

PayPal operates an online internet marketplace where buyers and sellers buy and trade goods and services, the payments of which are managed and secured by PayPal.

EBay was founded in California in 1995 and has grown to become the leading auction site. PayPal, a wholly owned subsidiary of eBay, is the market leader in secure online transactions.