eBay profits soar after Skype sale

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Online auction site eBay has seen its profits rocket in the last quarter thanks to its lucrative sale of Skype.

The company made net profits of $1.36 billion (£0.84 billion) in the fourth quarter of 2009 compared to just $367 million of the same quarter in 2008.

Revenues also grew by 16 per cent to hit $2.37 billion.

Most of the profits were put down to the sale of 65 per cent of Skype to a venture capitalist group back in September for $2.75 billion.

However, eBay also claimed the growth of Paypal and better levels of shopping over the Christmas period added to its success.

"We delivered a strong fourth quarter with double-digit revenue growth driven by exceptional performance at PayPal and turnaround progress and momentum in our core eBay business," said eBay president and chief executive John Donahoe in a statement.

"PayPal significantly expanded its presence globally and, for the first time, processed more than $20 billion in total payment volume in a quarter. Gross merchandise volume and sold items, accelerated for the third consecutive quarter.”

“We are starting 2010 with significant progress against our three-year growth strategies for PayPal and eBay and a clear focus on our priorities going forward," Donahoe concluded.

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