eBay posts 69% profit surge
Online auctioneer eBay cashed in on its rapid growth today as it posted a 69% surge in profits.
The site, one of the few major dotcom success stories since the high-profile slump in technology stocks, saw profits soar to $103.3m (€89m) in the third quarter of 2003 as the number of registered users hit a record 85.5 million.
But the US-based site disappointed investors by predicting that profits next year would grow by just 38% compared with a rate of 62% in 2002 and an expected 75% rise this year.
Shares lost ground on the cautious forecast in after-hours trading in the US.
The site has raised its profile by repeatedly hitting the headlines in the last year with a series of popular and unusual sales.
Items auctioned on this side of the Atlantic in the last month alone have ranged from a diamond tiara worn by Victoria Beckham on her wedding day to a bucket of water.
Revenues raced ahead to $530.9m (€457m) in the three months – up 84% on the same period last year.
The company said the rise was due to the strength across both its US and international businesses as well as its online payments operation PayPal.
Chief executive Meg Whitman said: “With record levels of registered users, listings, and gross merchandise sales, along with a strong performance by PayPal, eBay’s business continues to gain momentum going into the holiday season.”
