EBay profit plunges in the latest quarter

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People might not be as keen as before when it comes to shopping online.

EBay Inc. reported yesterday that its profit plunged to 29 percent in the latest quarter. This was due to the strength of the US dollar, and of course, a drop in its online Marketplaces business.

Last year, their net income for the fiscal quarter ending on June 30 was 460 million dollars or 35 cents per share. At present however, it dropped to just 327 dollars or 25 cents per share of stock.

The company’s Marketplaces unit includes electronic commerce websites: eBay, Shopping.com, StubHub and Kijiji. These sites had a 14 percent drop from the same quarter last year, logging in at just 1.26 billion dollars in revenue.

EBay attributed the drop to “the stronger dollar and the impact of challenging macroeconomic conditions.”

It’s not all that bad for EBay Inc. though.

Internet telephony service Skype, and online financial transaction service PayPay, which are both owned by the company, had a strong growth in the same period.

“We are managing our business with focus and discipline, delivering on our commitments while investing in our growth priorities.” eBay chief executive John Donahoe said. “ I’m pleased with our pace, our progress and our performance.”

Source:

http://tech.yahoo.com/news/afp/20090722/tc_afp/usitinternetretailearningsebay