PayPal Irish company's operating profits increased last year

OPERATING PROFITS at the main Irish company of US-owned ecommerce firm PayPal increased last year by 12.5 per cent to €4.7 million, new figures show.

According to accounts just returned to the Companies Office, they show that PayPal Europe Services Ltd increased its operating profits after revenues increased marginally from €91.7 million to €92.1 million in the 12 months to the end of December last.

The company has its European headquarters in Blanchardstown, Dublin, where it hosts PayPal’s European customer services and financial services functions for the European market.

Earlier this year, eBay-owned PayPal announced its decision to expand its Irish operations when it announced the creation of 1,000 jobs in Dundalk.

The figures show that there was a slight drop in pre-tax profits, decreasing from €5.7 million to €5.63 million.

This is largely attributable to more than a halving of grant income, decreasing from €1.4 million to €685,000.

The figures show that the company increased the numbers it employed in 2011 from 1,246 to 1,348 – a rise of 102.

The firm’s staff costs last year increased by 11 per cent, from €59.5 million to €66.5 million.

Globally, PayPal employs 10,000 worldwide and has 106 million active customers.

PayPal’s Irish operation is led by Louise Phelan and the figures show that remuneration for the company’s three directors totalled €511,000.

According to the directors’ report, they state that “despite the continued unfavourable macro economic environment, the outlook for 2012 remains positive as the PayPal Group plans to grow at a faster pace than ecommerce”.

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

The report refers to the February announcement of the new PayPal operations centre in Dundalk and the report continues: “In 2012, the company will continue to focus on delivering superb end-to-end customer experience, support the growth of eBay’s marketplaces and its merchant service business by driving both merchant acceptance and consumer preference.”

The report reveals that PayPal “continued its relationship with IDA Ireland in 2011 to further develop its centre of excellence to drive innovation in PayPal’s operations”.

The profits last year include the non-cash depreciation cost of €4.6 million. The figures show that the firm’s administrative expenses increased from €87.5 million to €87.3 million.

At the end of December last, the company had €14.6 million in accumulated profits. The company had €27.7 million in shareholder funds and this included €24.6 million in cash.