Feeds

eBay profits rise, outlook misses estimates

Bidding on futures

Combat fraud and increase customer satisfaction

eBay posted healthy fourth quarter results on Wednesday but its decision not to raise its 2006 outlook led to a fall in its share price in after-hours trading.

The online auction site saw profits jump 36 percent year-over-year to $279.2m or $0.20 per diluted share during the fourth quarter. This compares with $205.4m or $0.15 a share, for the same fiscal quarter in 2004.

However, financial analysts expressed disappointment at eBay's decision not to increase its forecast for the new financial year with shares falling 2.5 per cent. The company's 2006 outlook of revenue growth of between $5.7bn and $5.9bn is lower than Wall Street estimates and investors are believed to be concerned as to whether the company's growth is beginning to mature. Net revenue rose 42 percent to $1.3bn in the fourth quarter while operating income increased 30 per cent year-over-year to $370.4m. The rise in net revenue can be attributed to growth in eBay's core markets in the US and Germany and higher-than-expected profits from Skype and shopping.com "Q4 capped off a remarkable year for eBay," said Meg Whitman, president and CEO of eBay, in a statement. "We saw accelerating growth and momentum across the board, a testament to the fact that eBay has built the most outstanding portfolio of businesses on the internet."

For the full year, eBay generated consolidated net revenues of $4.6bn, a 39 per cent increase over the $3.3bn recorded in 2004. Consolidated net income also increased 39 per cent year-over-year to $1.1bn, or $0.78 per diluted share.

The number of confirmed registered users the company has rose 33 per cent year-over-year to 180.6 million. This compares to 135.5 million users at the end of the fourth quarter 2004.

The number of active users who bid, bought, or listed an item within the previous 12-month period, grew to a record 71.8 million in the fourth quarter, a 28 per cent increase over the 56.1 million active users reported in the same period a year ago.

At the end of the fourth quarter, eBay hosted approximately 383,000 stores worldwide, with approximately 212,000 stores hosted on the US site. The company's payment processing arm PayPal, had 96.2 million total accounts by the end of the fourth quarter, a 51 per cent increase compared to the 63.8 million accounts a year earlier.

Copyright © 2006, ENN

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.