PayPal Posts 8.5% Increase in Profit

PayPal Holdings Inc. on Wednesday said earnings and revenue rose in the quarter ended in June.

The company, which officially split from eBay Inc. this month, released its latest quarter of financials in a filing with the Securities and Exchange Commission on Wednesday. EBay had reported earnings on July 16 that included PayPal's revenue.

Last week, PayPal started trading as a public company after the split, though the two companies still work together. EBay in its second-quarter earnings report said that it accounted for about 22% of PayPal's total payment volume, down from 27% a year earlier.

PayPal said in the filing that it had received $3.8 billion in cash from eBay as part of its capitalization. PayPal also said eBay gave it property and equipment with a book value of $208 million.

Overall for the period ended June 30, PayPal reported a profit of $305 million, or 25 cents a share, up from $281 million, or 23 cents a share, a year earlier. Excluding certain items, the company posted a profit of 33 cents, up from 29 cents the previous year.

Revenue rose to $2.3 billion from $1.98 billion.

Shares of PayPal were inactive in after-hours trading.

Write to Cassandra Jaramillo at [e-mail]

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