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Ebay suffers further profits fall

22 April 09 22:22 GMT

Profits and income at online auction giant eBay have fallen for the second consecutive quarter as it continued to be struggle amid the weak economy.

It made a net profit of $357.1m (£247m) in the first three months of 2009, from $460m in the same period a year before.

Overall sales on the auction site - not including vehicle sales - were down 16%, though growth at Skype and PayPal meant overall sales fell by only 8%.

However eBay's shares rose, as the results beat expectations of analysts.

The strong dollar also played a part in eBay's falling profit, but the company has said it is looking to areas more within its control to try and improve performance - including making it easier to buy and sell items on its website.

The company also wants to improve security, in the hope of winning more confidence among potential users.

Last week eBay acknowledged that Skype - the web telephone business for which it paid $2.6bn in 2005 - did not fit in with the rest of the company, and would be sold off.

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