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Last Updated: Thursday, 19 July 2007, 01:32 GMT 02:32 UK
Ebay profits up amid listing drop
Meg Whitman, eBay chief executive
PayPal and online auction sales underpinned Ebay's growth
Revenue from online auctions have sent Ebay's profits surging, despite a shrinking number of listings.

The US internet auction firm said profits for the three months to the end of June were up 50% to $376m (183.1m).

Its auction business was the biggest earnings driver, but PayPal also did well despite Google entering the market with its own online payments service.

But the solid financial performance was offset by a less than glittering outlook for the year.

Its latest earnings results showed its electronic payments system Paypal continued to perform well with revenue up 34% as more international customers used the service.

In addition, Ebay's web communication portal Skype, which allows customers to make cheap long-distance phone calls through their computers, doubled its revenue to $90m for the quarter.

But a key income contributor were Ebay's core auction and other e-commerce sites such as Shopping.com, which grew 26% to $1.29bn, even as the number of items up for sale declined - a concern that this could eventually have an impact on sales growth.

The company said it had purchased about 10 million shares of common stock worth about $344m as part of an aggressive buyback scheme of up to $2bn shares over two years.


SEE ALSO
EBay to boost shares with buyback
19 Jul 06 |  Business
Google launches payment service
29 Jun 06 |  Business
EBay to buy Skype in $2.6bn deal
12 Sep 05 |  Business
eBay's 10-year rise to world fame
02 Sep 05 |  Business

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