Wednesday, April 16, 2008

EBay 1Q08 Earnings Up on Weak Dollar, Price Hikes

The effect of translating overseas currencies into dollars boosted quarterly sales by $110 million. U.S. revenue grew 16 percent while international sales grew at twice that rate, at 32 percent.

key stats:

  • eBay Inc reported first quarter ended March 31,2008 revenue increase 24% to $2.19 billion on higher listing prices and lower dollar.
  • Earnings in the quarter increased 22% to $460 million or 34 cents per share compared to $377 million or 27 cents per share.

  • In the quarter the company repurchased 37 million outstanding shares at $1 billion.

  • Listings on its marketplaces including,, StubHub and Kijiji increased 12% to $16.04 billion with 55% of the net revenue generated outside the U.S.

  • PayPal, online payment services reported 32% rise in sales to $582 million. Total payment volume increased 34% to $14.42 billion as active accounts increased 17% to 60.2 million.

  • Skype, internet based telephony and chat service increased net revenue by 61% to $126 million with 309 million global registered user base.

  • eBay estimates second quarter 2008 net revenues in the range of $2.100 to $2.150 billion

  • For the full year the company estimates to generate net revenue between $8.7 billion and $9 billion and earnings per share between $1.35 and $1.40 per share

"We do not believe that we are immune,'' Chief Financial Officer Robert Swan said in a phone interview. "Our sense is that our initiatives are driving the desired benefits, but the underlying economy is slowing.''

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