eBay reports first decline in sales

eBay posted fourth-quarter revenue of $2.04 billion, below analyst estimates, and a 7% drop year-over-year - its first decline in sales ever, the Financial Times reports.

CEO John Donahoe blamed the economy and stronger dollar for the poor results. Net income fell 31% in Q4 despite promotions and reduced charges to sellers.

eBay's core marketplace business registered $1.27 billion in revenue, a 16% decline, while Amazon and Craigslist have continued to increase their market share at eBay's expense.

Nielsen Online say traffic levels on eBay have fallen steadily with 10% fewer visitors in October than in the same period a year earlier. eBay cut 10% of its workforce in the same month.

Skype posted $145 million revenue in the fourth quarter, a 26% increase from the same time last year. Donahoe referred to Skype, as a "stand alone business" and said it was not "a distraction", according to the FT.