eBay sees 22 percent jump in profits

17 Jul 2008 08:43

The web auctioneer has reported a boost in profits resulting from an increase in item listings and sales growth at the company's PayPal division

eBay has said that its profits jumped 22 percent from last year. The boost came from an increase in item listings and sales growth at the company's PayPal division.

After the close of trading Wednesday, eBay said second-quarter net earnings grew to $460.3m, or 35 cents a share, up from $375.8 million a year ago.

The company's share price closed up 4.5 percent to $28.10, but surrendered the gains following the earnings report. The stock fell more than seven percent to $26.10 in in after-hours trading.

Excluding some costs, eBay predicted that it will report a profit between 39 cents and 41 cents a share, on sales of about $2.15bn. Analysts had expected earnings of 41 cents on revenue of $2.17bn.

Meanwhile, on Monday eBay won a court victory against Tiffany. The jeweller accused eBay of profiting from sales of counterfeit Tiffany goods, but the judge in the case found that it's up to brand owners to police for phony products.

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