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EBay’s Profit Jumps 25% â€Ž

22 July 2010 14:45 (UTC +04:00)

Baku - APA-Economics. The turnaround effort at eBay Inc.’s online marketplace is progressing slowly in the U.S., but the company’s quarterly earnings were buoyed by international sales and increased use of its PayPal online-payments service, Wall Street Journal reported.

The San Jose, Calif., Internet Company reported its second-quarter profit rose 26% on the back of a 6% increase in revenue.

EBay said a turnaround in its once-high-flying marketplace was "on track," with the total volume of goods, excluding autos, sold through eBay increasing 13%. Sales were particularly strong internationallyâ€”up 20% â€”but they rose only 2% in the U.S.

EBay’s brightest spot was its online-payments unit, where revenue climbed 22% to $817 million. Compared with the same quarter last year, PayPal recorded 16% more active registered users, and a 28% increase in total payment volume.

EBay’s second-quarter profit rose to $412 million, or 31 cents a share, from $327 million, or 25 cents, in the year-earlier period. Revenue was $2.22 billion, up from $2.1 billion a year ago.

Still, the company pulled back on its 2010 outlook because of the stronger dollar. EBay now expects adjusted earnings of $1.60 to $1.65 a share, down three cents, and it cut the upper end of its revenue forecast by $100 million.