Feeds

eBay defies 'softening' economy

Profits leap 22 per cent

Business security measures using SSL

eBay says that a softening economy has slowed its online auctions on both sides of the Atlantic. But the company still made an awful lot of money during the year's first quarter. And it still has high hopes for the future.

"We are encouraged by what we are seeing," brand-spanking-new CEO John Donahoe told investors during a conference call. "With Q1 behind us, I feel very good about the direction we are headed."

During the quarter ending March 31 - the day Donahoe grabbed the reins from former CEO Meg Whitman - the world's most popular online auction house raked in revenues of $2.19bn, a 24 per cent increase from a year ago, while profits hit $460m, a 22 percent leap from the previous year.

This came despite what eBay called "softening" economies in the US and the UK. "We saw a slowing in terms of buyers' propensity to buy toward the end of the first quarter," Chief Financial Officer Bob Swan said during the call. The US is eBay's number one market, while Britain is number three (just behind Germany).

But eBay cleaned up in other parts of the world, benefiting from a weak American dollar. Fifty-five per cent of the company's "marketplace" revenue - cash generated from auctions on eBay.com, Shopping.com, StubHub, Kijiji, and other sites - came from outside the US.

The number of eBay users increased only 1 per cent from the previous year, while gross merchandising volume (GMV) - the sum value of all closed auctions - decreased one per cent. But the number of auction listings rose 10 per cent.

eBay was pleased enough with the quarter to raise its forecast for the coming year. The company now expects 2008 revenues to reach somewhere between $8.7bn and $9bn. ®

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.