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Last Updated: Wednesday, 19 October 2005, 23:13 GMT 00:13 UK
eBay profit climbs but shares dip
eBay logo at its headquarters
Analysts had been expecting more
Online auction site eBay has reported a 40% rise in quarterly profits, helped by increasing sales in Europe and Asia.

Net income in the third quarter ending 30 September was $255m (144.7m) from $182.3m a year earlier. International sales increased 43% to $408.9m.

However, eBay said that profit in the current quarter would not top forecasts, disappointing some investors who had expected stronger growth.

eBay's shares tumbled 7% in extended electronic trading in New York.

'Overall health'

eBay said its purchase of online phone firm Skype and an online payment firm would slow earnings growth.

Some analysts have questioned the move for Skype, saying it the price is too high and it does not offer the company enough benefits.

eBay defended its move on Wednesday and announced that Chief Financial Officer Rajiv Dutta will become the new boss of Skype.

"As we head into the close of the year, I couldn't be more pleased with the overall health of the business," said Mr Dutta.

eBay said it expects full year earnings to be between $4.47bn and $4.51bn.

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