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eBay profits jump but shares drop

22 April 10 07:46 GMT

Online retailer eBay has reported an 11% rise in net income for the first quarter of the year to $397.6m (£258m), with turnover up by 9% to $2.2bn.

However, the increase was not as big as investors had hoped and shares in eBay fell 8.7% in after-hours trading.

Analysts were also disappointed by the company's comments on its prospects.

Its chief financial officer, Bob Swan, said results would be held back by the negative effects of a stronger US dollar.

That means that a currency that has lost value against the US currency will convert into fewer dollars than before.

EBay, which also owns the PayPal payments system, is in the second year of a three-year restructuring, part of which involves making its site easier and cheaper to use.

Last year it sold its telephony business, Skype. When the effects of that deal are stripped out of the results, turnover rose by 18%.

EBay said it was sticking with its revenue forecast for the full year of about $9bn (£5.8bn).

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