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EBay gets boost from PayPal and a sliding dollar
17.04.08
Online auctioneer eBay has turned in a better first-quarter profit than expected, shaking off fears that recent changes at the group would bite into growth.
It is the first set of results since long-term CEO Meg Whitman stood down in favour of John Donahoe.
He said his first order of business would be to ensure growth by improving the buying experience on eBay.
The firm did better from its PayPal payment service and increased selling fees. Its foreign revenue was also boosted by a sliding dollar.
The company is finally seeing some growth in internet phone service Skype, the purchase of which many analysts branded a costly mistake.
It contributed strongly to this quarter with $126 million (£63.8 million) in revenue, 61% growth from this time last year due to increased selling fees and higher revenue.
Net profit climbed 22% to $459.7 million from revenue up 24% at $2.19 billion. International revenue rose 32%.
However, eBay said it may be hit in the months to come by a slowing of growth in electronic commerce.
