Profits at online auction giant eBay fall 29 per cent

Oct 23 2009 by Graeme Brown, Birmingham Post

Profits at online auction giant eBay have fallen by 29 per cent as it continued to struggle amid the weak economy.

It made £211 million in the third quarter from £297 million in the same period a year earlier as customers showed reluctance to spend.

But the firm’s overall sales rose six per cent to £1.45 billion as more people used its PayPal division to purchase online.

Shares fell five per cent in after-hours trading as it forecast the fourth quarter would continue to be tough.

Revenue from internet communications service Skype rose by 29 per cent.

Earlier this year eBay agreed to sell the business for about £1.2 billion though it will keep a 35 per cent stake.

“The economy we see stable, and we’re cautiously optimistic about consumer spending going into the holiday,” chief executive John Donahoe said. “What is more important from our standpoint is we actually see some progress on our turnaround metrics.”