Feeds

eBay Q3 income - Now with profit

Full-year guidance lowered

Choosing a cloud hosting partner with confidence

Internet auctioneer eBay has reversed a loss from its third quarter last year, but warned that its full-year revenues would fall short of previous estimates.

Net income during eBay's third quarter ending September 30 was $492.2m – a marked improvement over a year-ago loss of $935.6m. The auction site's Q3 2007 finances had been badly damaged by a $1.4bn charge relating to its purchase of Skype.

eBay's net revenue was $2.12bn, up $228m from the same period last year.

The company's core auction business generated $1.38bn in revenue, a 4 per cent rise year-over-year. Gross merchandise volume totaled $14.28bn for the quarter. About 53 per cent of revenue in this segment was generated outside the US.

PayPal ops had net revenue of $597m, a 27 per cent increase over the same period last year. Registered accounts increased 19 per cent year-over-year to 65 million.

The Skype department reported $143m in revenue for the quarter, representing a 46 per cent increase over Q3 2007. eBay said it ended the quarter with more than 370 million registered users around the world.

"Overall, we are pleased with the performance of the portfolio this past quarter," said eBay CEO John Donahoe. "We took a number of steps during the quarter to further strengthen our business and better align our cost structure to invest and compete."

Said alignment came in the form of auction fee changes to encourage more fixed-price sales instead of auctions. The company has struggled as of late to retain buyers and sellers migrating to bidding-free sites like Amazon.

This month, eBay said it would lay off 1,000 employees and remove hundreds of temporary positions. On the other hand, it also announced it has paid $945m for the online credit firm, Bill Me Later, and $380 cash for two Danish classified companies.

As a result of restructuring, eBay said it expects to be hit with about $70m to 80m in charges in the fourth quarter. Net revenues for that quarter are expected to be in the range of $2bn to $2.17bn.

For the full year, eBay lowered its earnings forecast (that it had raised in July). The company now expects revenues between $8.53bn and $8.66bn. Previous estimates were between $8.7bn and $9.05bn. ®

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
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.