eBay reports 22% profit rise, but outlook still soft

EBay's second-quarter profit jumped 22%, as the online auction company enjoyed strong growth in its e-commerce sites and its PayPal payments service, an Associated Press report said.

But eBay's outlook for the current quarter was softer than analysts had been forecasting, and the auction company's shares fell 6% in after-hours trading, the report added.

The stock had gained 4.5% in regular trading to close at €17.7 (US$28.10).

San Jose, Calif.-based eBay earned €378.6 million (US$460 million), compared with €237 million (US$376 million), or in the year-ago quarter.

EBay's revenue rose 20% to €(US$2.20 billion). Analysts polled by Thomson Financial had been looking for €1.37 billion (US$2.17 billion) in revenue.

Revenue from eBay's marketplaces segment, which includes eBay, Shopping.com, StubHub and other e-commerce web sites, rose 13% to €921 million (US$1.46 billion).

Sharper growth came from PayPal, whose revenue rose 32% to €379 million (US$602 million). Revenue from its online telecommunications service, Skype, rose 51% to €82 million (US$130 million).

Listings on eBay's site climbed 19% to 667 million during the quarter, but the company's number of active users, an important measure of how well the company is attracting new buyers and sellers, rose only 1.4% to 84.5 million.

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