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eBay reports drop in revenue and earnings

Dawn Kawamoto CNET News

Published: 22 Jan 2009 09:19 GMT

Facing a tight economic climate and strong dollar overseas, eBay reported on Wednesday a seven percent revenue drop in the fourth quarter and weaker net profits.

Shares of eBay, in after-hours trading, fell 6.25 percent to $12.45 (£9). The stock rose nearly six percent to close at $13.28 a share during regular trading.

The online auction giant reported revenue of $2.07bn, down seven percent from a year ago. That figure fell short of analysts' expectations of $2.12bn in revenue.

eBay's net income, meanwhile, fell nearly 31 percent to $367m in the fourth quarter, or 29 cents a share, compared with net income of $531m, or 39 cents a share, a year earlier. Excluding charges, the company posted non-GAAP net profits of $524m, or 41 cents a share, beating Wall Street's expectations of 39 cents a share profit, according to Thomson Reuters.

eBay chief executive John Donahoe said in a statement: "While the [Christmas] season was tough and competitive, our overall results for 2008 were strong."

He added: "For 2008, we delivered double-digit revenue and earnings growth; made significant changes in our eBay business; and built a stronger, more diverse portfolio of leading e-commerce businesses. We will build on our strengths in 2009 while managing our business prudently in the continued challenging environment."

Credit: eBay reports revenue and earnings decline from CNET News