Feeds

eBay profits rise, outlook misses estimates

Bidding on futures

Business security measures using SSL

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

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.