Pre-tax profits at Paypal up 43%

Paypal’s recent massive expansion in Ireland is beginning to pay dividends with pre-tax profits at its main Irish firm last year increasing by 43% to €11.2m.

The online payment firm announced 1,000 new jobs at its Irish operations in 2012 and new figures show that revenues at Paypal Europe Services Ltd increased by 28% from €102.27m to €130.58m 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.

Led by Louise Phelan, the main growth at Paypal’s Irish operations has centred at its Dundalk facility, where it announced a further 400 jobs in June of this year.

Staff costs at the firm last year increased by 19% from €78.27m to €93.4m. Pay to the firm’s three directors last year increased from €597,000 to €618,000

According to the directors’ report “the outlook for 2014 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 of the company which is broadly in line with expectations.

The figures show that the firm’s administrative expenses — largely made up of staff costs — last year increased from €95.18m to €120.27m

The firm’s operating profits last year increased from €7m to €10.3m, while the firm also benefited from €906,000 in “other income” and interest receivable.

The accounts show that after corporation tax of €1.42m, the firm’s profit for the year totalled €9.79m.

The profits last year include the non-cash depreciation cost of €11.5m.

At the end of December last, the company had €26.98m in accumulated profits. The company had €40.6m in shareholder funds and this included €20.18m in cash.