EBay posts 29% drop in net income; sales rise 6%

EBay posts 29% drop in net income; sales rise 6%

New York: Online marketplace eBay Inc has reported 29% drop in its third quarter net income at $350 million, amid weak economic conditions.

In the year-ago period, the company had a net income of $492 million, eBay said in a statement.

The company posted third-quarter revenue of $2.2 billion, up 6% from the same period last year as more people are using PayPal to pay for things bought online.

eBay said on year-on-year basis growth in the company revenues was driven primarily by the continued growth in PayPal, Skype, the firm’s classifieds business, as well as increase in its fixed-price format.

“Our third quarter results were strong with PayPal gaining momentum and market share worldwide and our core eBay business showing positive trends," eBay Inc president and CEO John Donahoe said.

In its outlook, the company said it expects net revenues in the range of $2.2 billion to $2.30 billion.

Revenue from internet communications service, Skype stood at $185.2 million for the quarter, representing 29% year-on-year growth. During the quarter, Skype added 40.3 million registered users taking the total number to 520.8 million.

eBay would focus on product strategies to enhance customer engagement, it said.