Online auction company eBay has reported better than expected profits thanks mainly to growth at its PayPal division.
Second quarter net income was £176 million, down from £257 million for the same period a year ago.
But the fall in earnings was largely due to eBay’s takeover of GSI Commerce, a digital marketing and ecommerce firm, earlier this year.
Ebay’s main online Marketplace business showed signs of a turnaround and its PayPal division grew well.
PayPal gained members and the value of merchandise sold through its eBay.com website rose.
Taking out one-off cost – including those of acquiring GSI – income was 19% higher than last year’s £331 million.
However after eBay increased their charges in May there was a considerable backlash from UK etailers- some of whom claim that eBay’s new charges make them unprofitable.
These higher charges are making them switch from eBay to Amazon- who has kept their UK charges flat.
The EBAY share price still trades at a discount to it’s record price set on 1st October 2007 of $39.90.