eBay doubles profits
23 July 2004
Online auction firm eBay has more than doubled its second quarter profits.
Strong growth in international sales has helped the company post second-quarter net income of $190.4 million, compared with $91.9m, representing a 51 per cent increase in earnings.
Revenue also rose to $773.4million from $509.3 million. Excluding items, eBay posted a profit of $197.7million.
On that basis, Wall Street analysts had been expecting the company to post net income of 27 cents per share, on average, on revenue of $769.4 million, according to Reuters Estimates.
eBay said transaction revenue increased 76 per cent to $273.4m internationally and 32 percent to $319.1m in the United States. The total value of sold goods rose to $8bn, eBay said.
Speaking to Associated Press, Rajiv Dutta, eBay's chief financial officer, said that the company would now continue to pursue new markets and in particular would be pursuing opportunities in India, which the company has identified as a growth market. This is despite the low per capita income and low rates of internet usage.
He said: "Our management philosophy is to build for the long term. What is a small portion of the business today may well be a very large percentage in the future."
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