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Ebay 2Q Profit Up on Increased Listings, PayPal Growth

Posted on: Wednesday, 16 July 2008, 12:00 CDT

Despite a tumultuous quarter for eBay that included lawsuits brought on by two luxury brands and one the company filed against Craigslist, eBay today posted a strong second quarter with revenues of $2.20 billion, up $361 million from the same period last year.

The self-described "World's Online Marketplace" said second-quarter profit rose 22 percent to $460 million after customers listed more items for sale and revenue at its PayPal payment unit jumped.

"This was a strong quarter and we are very pleased with the performance of the portfolio, particularly with the growth generated by PayPal," said President and CEO John Donahoe who took over from Meg Whitman on March 31.

"We have made bold moves across the eBay marketplace to accelerate long-term growth. We remain confident in our strategies to improve the customer experience as we manage in an uncertain economic climate."

Net income climbed to $460.3 million, or 35 cents a share, from $375.8 million, or 27 cents, a year earlier, the company said. Profit excluding some items was 43 cents, beating analysts' estimates by 2 cents. Revenue in the three months ended June 30 rose to $2.2 billion from $1.83 billion.

Despite the better-than-expected second quarter results, shares of eBay dropped in after-hours trading after the company said it expects earnings excluding special items to be between 39 cents and 41 cents a share, below a range of 39 cents to 44 cents forecast by analysts surveyed by Thomson Reuters.

Source: San Jose Mercury News

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