EBay buoyed by strong Christmas

Online auction site eBay got a lift from strong demand in the UK today after it emerged profits rose 24% in the final three months of the year.

The group said all its markets enjoyed a “very strong quarter” as average selling prices increased in a “robust online holiday shopping season”.

Total revenues for the final three months of 2006 jumped to a record $1.7bn (€1.3bn), a rise of 29% over the previous year, while net income grew by 24% to $346m (€260).

A surge in users, particularly from the US, the UK and Germany, meant it sold $14.4bn (€10.9bn) worth of merchandise in the quarter, a rise of 20% from 2005.

For the full year, revenues grew to $6bn (€4.65bn), up 31% from the $4.6bn (€3.5bn) in 2005.

Chief executive Meg Whitman said: “The fourth quarter was an excellent quarter for eBay, bringing 2006 to a very good close”.