Turnover up but profits down at eBay

20 Jul 2006

Online auction firm eBay, which is in the process of creating 300 jobs in Dublin, has reported revenues of US$1.4bn, a year-over-year increase in revenues of 30pc.

Gross profit of US$1.1bn during the second quarter was 79pc of net revenues, lower than the 82pc reported during the same period last year.

As of 30 June, eBay had cash and securities of nearly US$4bn. The company also revealed that its board of directors have authorised the repurchase of up to US$2bn of the company’s stock within the next two years.

“Q2 was a good quarter for the company, driven by solid growth across eBay, PayPal and Skype,” said Meg Whitman, president and CEO of eBay.

“Our stock repurchase plan underscores our confidence in our ability to generate strong profitability and cash flows while investing in the future of the company.”

Out of the overall mix, eBay’s auction marketplaces scored revenues of US$1bn, followed by payments revenues totalling US$339m and revenues from its communications business totalling US$44m.

By John Kennedy