eBay Gets Revenue Boost from Paypal, Skype

by Lalee Sadighi on 16 July 2008, 18:46

Categories: General news - Magazine - Media - Internet - Finance
Topics: ebay , paypal , skype , revenues

 

Internet giant eBay on Wednesday announced its second-quarter revenue rose 22 percent on increases in auctioned listings at the site and the growth of Paypal and Skype.

Paypal, the online payment unit of eBay, increased its revenue by 33 percent while total payments grew 35 percent. Skype, the eBay-owned voice-over-IP company, showed a 51 percent increase in its revenues thanks to 29 million new registered users during the quarter, for a grand total of 338 million users.

“This was a strong quarter and we are very pleased with the performance of the portfolio, particularly with the growth generated by PayPal,”  eBay CEO John Donahoe said in the company’s press release.

The e-commerce company posted second-quarter revenue of $2.20 billion, up $361 million from the same period last year when it recorded $1.83 billion.

Net income climbed to $460.3 million, or 35 cents a share, from $375.8 million, or 27 cents, a year earlier for the company that claims 81 million unique visitors per month.

Full-year profit may rise to $1.72 to $1.77 per share, eBay said in the report, higher than the $1.70 to $1.75 range it anticipated.

The company raised it forecasts on full-year revenue of $8.8 billion to $9.05 billion, above its predicted range of $8.7 billion to $9 billion and above the average $9.01 billion anticipated by analysts.

eBay's guidance for its third quarter came in shy of some analyst expectations. Shares of the auction company traded down $1.81, or 6.44 percent, at $26.29 in after-hours trading.

The earnings upside comes as the online auction house recovers from a series of legal battles against luxury houses LVMH and Tiffany & Co. regarding the sale of counterfeits goods on its site.