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Falling sales dent eBay profits

Online auction giant eBay has reported a fall in profits between April and June

of almost one-third, but analysts had expected a sharper fall.

Net profit was $327.3m ( 198.6m), down 29% compared with the $460m made in the

same period a year ago. Revenue also fell slightly, from $2.2bn to $2.1bn.

The company attributed the fall to the strong dollar and the impact of the

global economic downturn.

eBay includes web payments unit PayPal and internet telephone company Skype.

Growth in these two businesses helped to offset a drop in sales in the main

online marketplace.

"We drove solid second quarter results, with strong momentum and market share

gains at PayPal and continued stabilisation in our core eBay business," said

eBay's chief executive John Donahoe.

"I'm pleased with our pace, our progress and our performance," he added.