E-commerce company eBay said net revenue jumped 7 per cent in the second quarter, boosted by higher demand in the PayPal payments business it plans to spin off on Friday.

The company also announced an additional $1 billion share buyback program.

Net income fell to $83 million, or 7 cents per share, for the second quarter ended June 30th, from $676 million, or 53 cents per share, a year earlier.

Net revenue rose to $4.38 billion from $4.10 billion.

EBay and PayPal will split into two companies after the closing bell on Friday, with PayPal listing independently on the stock exchange on Monday.

The split comes more than a decade after Ebay bought the payments firm in 2002, closely integrating the two firms. But in September last year, it announced plans to divide the two companies, hiving Paypal off into a separate entity.

Chief executive of eBay John Donahoe said the decision was taken because it was best for each business and would create additional value for shareholders.

However, the two companies will continue to work closely together, he said.

Additional reporting: Reuters