Feeds

eBay halts nine months of revenue shrinkage

Profits? That's another matter

High performance access to file storage

eBay's revenues are on the rise again, thanks to the continued growth of its PayPal and Skype operations. But in the third quarter, the online tat house saw profits plummet nearly 30 per cent. The news sent its share price tumbling more than five per cent in after hours trading on Wednesday.

In the quarter ending September 30, eBay's revenues reached $2.23bn, a six per cent jump from the same quarter last year, ending nine months of revenue shrinkage. "Our third quarter results were strong with PayPal gaining momentum and market share worldwide and our core eBay business showing positive results," read a statement from chief executive John Donahoe.

The company's core marketplace business continues to shrink - revenues topped out a $1.4bn, down one per cent - but it's not shrinking as rapidly, and the slack was picked up elsewhere. PayPal revenue climbed 15 per cent to $688.1m, accounting for more than 30 per cent of eBay's overall business.

Revenue from the lame-duck Skype business was also up, climbing 29 per cent to $185.2m.

But third-quarter profits fell 29 per cent to $350m. eBay attributed the drop to its acquisition of instant-credit outfit Bill Me Later, the weaker US dollar, and its "continuing shift to faster growing, lower margin businesses."

Donohoe continues to move the company away from its traditional online auction biz towards fixed-price sales, classifieds, and the money machine that is PayPal. On November 3, eBay will open up a beta version of its new PayPal X platform, offering a new set of APIs for embedding payment tools into third-party applications. The idea is to put PayPal, well, everywhere. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
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
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
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
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.
HP ArcSight ESM solution helps Finansbank
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.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.