Now let me turn the call over to Pedro.Pedro Arnt Thank you. Welcome and thanks for joining us on our recap of MercadoLibre’s second quarter of 2012. Having closed a strong first half of the year, I’d like to start by reviewing some of the drivers behind the solid performance across all our business units, both at the top and bottom lines as revenue grew 47% in local currencies, 28% in U.S. dollars and net income grew 91% in local currencies, 71% in U.S. dollars during the quarter. To start out let me note that having posted these solid financial results despite significant currency headwinds and signs of slowing economies throughout the region confirms our understanding that sustained positive e-commerce trends and solid internal execution continue to be determinant drivers of our company’s growth. Accordingly, capturing market growth through innovation on our platforms is where we remain focused, conscious of the great mid- to long-term prospects of technology enterprises in rapidly developing regions such as Latin America. Internet penetration continues on the rise and better connections are allowing Internet users to become increasingly engaged online. A growing middle class is therefore adapting its shopping habits in the countries where we operate and the search for convenience, competitive prices and unmatched variety leads them to MercadoLibre. As e-commerce gains share of retail, we continue to benefit from the strong top of mind presence that we’ve built and from our commitment to deploying the best user-facing products and technologies, offering the right solution for each user’s needs and thus increasing the relevance and ubiquity of the services we offer. To quantify the success we believe we are having, here is a quick over view of key operational metrics that illustrate the underlying foreign exchange neutral growth of our business. During the second quarter, 3.7 million new users were registered and confirmed on our site, 31% more than in the second quarter of 2011, bringing out total confirmed registered users to 73.2 million. Successful items were 15.8 million, a 36% year-over-year growth. Total number of payments were 5.5 million, 78% year-over-year growth. GMVe was $1.299 billion, a 37% year-over-year growth in local currencies. TPV was $411.6 million, a 64% year-over-year growth in local currencies.
These strong operational metrics translated well into financial performance. Specifically during the second quarter of 2012 net revenues grew 28% in U.S. dollars to $88.8 million, a 47% growth in local currencies. Gross profit margin was 73.1% versus 75.6% in the second quarter of 2011 and 74.8% in the first quarter of 2012 driven principally by the growth of our lower-margin Payments business.Income from operations grew 48% to $31.9 million with an operating income margin of 35.9% versus 31.1% in the first quarter of 2011. In local currencies, operating income grew 66% year-on-year. Net income before income asset tax expenses grew 56% year-on-year to $35.1 million. In local currencies, pre-tax income grew 77%. Net income was $25.4 million, growing 71% year-on-year. This represents a 28.6% net income margin versus 21.4% a year earlier. When measured in local currencies, net income grew 91% year-on-year during the second quarter. Now I would like to dive into further detail on how we achieved these results. Let me start with our core marketplace, which today represents approximately 70% of our revenues. Our rate of GMVe growth for the quarter, excluding the impact of foreign exchange, continued to be we believe above market rates. Read the rest of this transcript for free on seekingalpha.com