Ebay soars after bumper second quarter profits

NEW YORK - Ebay has beaten analyst expectations and seen profits jump by 53% to a record $291.6m (£167m), and said that it expects to be even more profitable during the remainder of the year, upgrading its earnings outlook.

The online auction company has increased its earnings per share forecast from 71 cents to between 77 and 78 cents after the bumper quarter, in which revenues rose by 40% to $1.09bn.

After beating analysts' expectations, shares in eBay soared in after-hours trading by 14%, to trade at almost $40. The official share price on Nasdaq at the end of Wednesday was $34.86.

The company's figures showed that international sales are fast approaching that of US sales, up by 51% to $418.8m compared with a 27% rise in US sales to $423.6m. Ebay reported that the total value of successfully closed listings during the period was $10.9bn, up by 36% on last year's figure.

Meg Whitman, president and CEO of eBay, said: "EBay achieved remarkable results in Q2. Excellent momentum in the US and Germany, as well as at PayPal, all helped deliver an impressive jump in revenues and profit."

PayPal, the online payment system bought by eBay in 2002, had 78.9m accounts in total at the end of the quarter, a rise of 56% on the same period last year.

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