eBay profits soar

Online auctioneer eBay has reported soaring profits for its second quarter, with net income hitting $190.4m, up from $91.9m for the same period last year.

While turnover is impressive at $773m - compared to $509m for the corresponding period last year - it is only 2.3 per cent up on the company’s first quarter. The company says that it expects turnover to stall during the summer months as people devote themselves to holidays instead of retail therapy.

eBay still relies on the US for the bulk of its business but says that its European auction sites are showing strong growth - triple-digit revenue growth for some. Its international business as a whole saw revenue leap by 76 per cent to $273m.

eBay has been aggressively buying up local sites around the world, most recently in India and China. It says that its PayPal electronic payment system, recently introduced in the UK and other European markets, is meeting strong acceptance.