PayPal’s Irish expansion rewarded with profits

PayPal’s recent massive expansion in Ireland continued to pay dividends last year with pre-tax profits at its main Irish firm increasing by 6% to €11.9m.

The online payment firm announced 1,000 jobs at its Irish operations in 2012, and new figures show that revenues at PayPal Europe Services Ltd increased by 17% from €130.5m to €152m in the 12 months to the end of December.

The company has its European HQ in Blanchardstown, 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 on its Dundalk facility where it announced a further 400 jobs last year.

New accounts show the average number of employees at PayPal Europe Services Ltd last year rose by 313 from 1,871 to 2,184.

Staff costs increased by 16% going to €108.32m. Pay to the firm’s three directors last year decreased from €618,000 to €493,000.

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

Last year, eBay announced its intention to split up eBay and PayPal into different entities and the PayPal directors’ report states that the announcement is not expected to have any impact on the activities of the company.

The firm’s administrative expenses, largely made up of staff costs, last year increased from €120.27m to €141m.

The firm’s operating profits last year increased from €10.3m to €11m while the firm also benefited from €869,000 in “other income” and interest receivable.