eBay enjoys 50 per cent boost to profits

Results for second quarter show record leap in revenue

Written by Neon Kelly

Computing, 19 Jul 2007

Auction web site eBay has announced financial results for the second quarter showing a 50 per cent rise in net income.

The company made $367m in profit across the quarter. Revenue totalled a record $1.83bn, representing a growth rate of 30 per cent.

Results for eBay subsidiary Paypal saw similar success. The secure payment service posted record profit of $454m, and a growth rate of 34 per cent over the $339m reported in the second quarter of 2006.

The auction site also revealed that it bought 10 million shares of its own common stock during the second quarter, at a cost of roughly $344m. The move forms part of wider repurchasing plan that that will see eBay spend up to $2bn by January 2009.

'The quarter was a very good one for the company, as our portfolio of businesses continued to deliver value to our global community,' said Meg Whitman, eBay president and chief executive.