International growth lifts eBay

eBay is expecting a good Christmas

Profits have continued to surge at eBay, the online marketplace, thanks to growing international sales and the success of online payment unit Paypal.

eBay recorded a 77% rise in third quarter profits to $182.3m as sales increased 51% to $805.9m.

Analysts gave a mixed reaction to the figures, claiming that although eBay's revenues met forecasts, profits were below general market expectations.

eBay said it was "very confident" about sales over the Christmas period.

eBay hosts sales of items ranging from memorabilia and classic cars to unwanted wedding invitations.

Overseas strength

The company's growth continues to be largely driven by its operations outside the US.

eBay owns or is invested in trading sites in almost 20 countries, including India, China and South Korea.

I am feeling very confident about the holiday season Rajiv Dutta, eBay

Sales from international operations rose 82% to $282m compared to sales in eBay's domestic market which rose 29% to $330m.

Paypal, eBay's online payment service, also continues to perform strongly, with sales rising 56% to $166m.

eBay said it was lifting its sales forecast for the fourth quarter by $29m.

However, due to increased investment in its Chinese site and other areas of the business, the firm said it expected profits to remain the same as previously outlined.

"I am feeling very confident about the holiday season and that is reflected in the guidance," said chief financial officer Rajiv Dutta.