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Last Updated: Wednesday, 17 October 2007, 22:22 GMT 23:22 UK
EBay posts loss on Skype charges
EBay's revenues are continuing to soar
EBay has reported a quarterly loss of $936m (459m), caused by its previously announced admission that it paid too much for internet phone firm Skype.

The online auction house said this month it would have to take a $900m charge due to overvaluing Skype, which it bought for $2.6bn in 2005.

However, eBay's results still beat market targets, as its revenues for the three months to 30 September soared.

Its third quarter revenues rose 30% from a year earlier to $1.89bn.

'Right thing'

Excluding the Skype charge and other one-off factors, eBay's profits would have soared 53%.

EBay president and chief executive Meg Whitman said it was the first time the company had reported a loss since the second quarter of 1999.

"But the steps we took... and moving to new management was completely the right thing to do," she said.

Analyst Jordan Rohan, of RBC Capital Markets, said that, Skype aside, "everything looks fine".

"It seems like everything is under control but the Skype write off reminds you that eBay is not infallible."

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