(AOF) – The world’s number one online auction company eBay is expected to be under pressure due to once again disappointing forecasts and a warning about its annual profits. In the first quarter, eBay posted a net loss of $1.3 billion, or $2.28 per share, compared with $641 million and $94 million respectively a year earlier. This loss is explained by the deterioration in the value of its holdings. Adjusted for exceptional items, earnings per share from continuing operations came to $1.05, beating expectations by 1 cent.
Revenues fell 6% to $2.48 billion, slightly above expectations. They are also down 5% at constant exchange rates.
The value of transactions carried out on the various eBay sites fell by 20% to 19.4 billion dollars. Its decline was 17% at constant exchange rates.
For the current quarter, the group is targeting adjusted earnings per share of between 87 and 91 cents per share for sales of between 2.35 and 2.40 billion dollars. The market is anticipating $1.02 and $2.53 billion.
These weaker than expected forecasts are accompanied by the reduction of its 2022 objectives.
Over the full year, eBay forecasts adjusted earnings per share of between $3.90 and $4.10 per share on revenues of between $9.6 billion and $9.9 billion, or at best a decline of 3%. It previously targeted adjusted earnings per share of between $4.20 and $4.40 per share on revenue of between $10.3 billion and $10.5 billion, or at best growth of 3%.
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There are many initiatives to “bring the Gafa into line”. China is stepping up investigations and sanctions against champions like Alibaba, with the aim of combating unfair competition on the Internet. In the United States, historic lawsuits will take place against Google, Facebook and Amazon. Within the European Union, the Ministers in charge of Digital have adopted the future Digital Services Act (DSA) and Digital Markets Act (DMA), presented in December 2020 by the European Commission. The latter seeks to prevent abuse upstream and is preparing to further control the acquisitions of the Internet giants and their impact on competition. The G7 countries, rallied by 130 countries gathered within the OECD, have already succeeded in supervising these actors on the fiscal level thanks to the establishment of a global minimum tax of 15%.