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eBay profits continue to fall

2009-10-22 08:44:46

Profits at online auction giant eBay have fallen by 29% as it continued to struggle amid the weak economy.

It made $350m ( 211m) in the third quarter from $492m in the same period a year earlier as customers showed reluctance to spend.

But the firm's overall sales rose 6% to $2.4bn as more people used its PayPal division to pay for things online.

Shares fell 5% in after-hours trading as it forecast the fourth quarter would continue to be tough.

Revenue from internet communications service Skype, rose by 29%.

Earlier this year eBay agreed to sell the business for about $2bn though will keep a 35% stake.