Pre-tax profits drop to €6.1m at Irish eBay unit

Pre-tax profits at the main Irish unit of online company eBay fell 6% to €6.1m last year in spite of a jump in revenues, new figures show.

According to accounts filed with the Companies Office, eBay Europe Services Ltd recorded the decrease in pre-tax profits despite revenues increasing 5% from €56.6m to €59.6m in the 12 months to the end of December last.

The firm’s profits last year take account of operating lease charges of €1.5m and non-cash depreciation costs of €3.1m. The figures show that the company had an 8% increase in operating profits from €5.4m to €5.9m.

The number of workers rose to 735 as a result of an expansion of the company’s European customer support activities. Staff costs last year rose 4% from €39.74m to €41.5m that included share-based payments of €1.8m. Directors’ emoluments were €351,000 with four directors serving during the year.

The firm paid a dividend last year of €3m and in 2012, Ebay announced the creation of another 450 jobs here to be based at an operations centre in Dundalk, Co Louth.

According to the directors’ report “the business has performed broadly in line with expectations for the year”

The company had shareholder funds of €35.4m. It had €12.3m in accumulated profits after its dividend payout while its cash rose from €15.8m to €18.3m.

Ebay set up here in 2003 and employs over 2,300 people in its eBay and PayPal facilities at Blanchardstown, Dublin and the Dundalk Business Campus, Co Louth.