New York: Online auction firm eBay Inc has
reported a 29 per cent drop in net profit at USD 327 million
in the second quarter ended June 30, mainly due to drop in
sales of its marketplaces business.
The company had a net profit of USD 460 million in the
corresponding year ago period, eBay said in a statement.
Net revenue declined four per cent to USD 2.09 billion in
the latest quarter compared to USD 2.19 billion in the June
quarter of 2008.
The marketplaces business unit, which consists eBay,
Shopping.com, StubHub, Kijiji and other e-commerce sites,
recorded revenue of USD 1.26 billion, a 14 per cent
year-over-year decline.
The revenue drop was attributable to the impact of the
stronger dollar and the impact of challenging macroeconomic
conditions, the statement added.
"We drove solid second quarter results, with strong
momentum and market share gains at PayPal and continued
stabilization in our core eBay business," eBay Inc President
and Chief Executive Officer John Donahoe said
However, the year-over-year revenue growth of PayPal and
Skype was offset by the effects of the stronger dollar and a
modest decline in the marketplaces business, the statement
said.
Bureau Report
First Published: Thursday, July 23, 2009, 18:18