StubHub becomes the most profitable business for eBay

eBay announced that its profit growth is from StubHub which is specialized in selling tickets online. StubYHub was acquired by eBay at $310 million in 2007.

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StubHub becomes the business section that grows fastest in eBay as its annual growth rate reaches 34 %. Its annual income is $720 million, accounting for 9% of eBay’s total sales performance. The excellent performance of StubHub and the poor performance of eBay’s traditional business sessions made a great difference.

StubHub realized over $ one billion gross turnover in Q4 2015. Its growth rate was 30%(YOY). The   gross turnover of eBay in Q4 2015 was $21.8 billion. Its growth rate was only 5.1% (YoY), which was 4% decline in comparison with Q3 2015.

Throughout 2015, eBay gross turnover declined by 1%, that is $82 billion transactions. Speaking of StubHub performance, its annual performance increased by 5% on the year-on-year basis due to the adjustment of foreign exchange. eBay did not make any foreign exchange adjustment.

It was the first case that eBay announced StubHub’s income. But eBay did not reveal more sensitive details, such as the interest and interest rate of StubHub. It seems StubHub makes important role to eBay’s interest than the interest rate of eBay.

At present, the technical acquiring firms are planning to announce how much profit that its major business brings. Google recently announced the profit of YouTube which was acquired in 2006. Facebook also plans to announced Instagram’s income.

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