Search Helping eBay’s Finances
Financial results for eBay’s third quarter showed growth in profit and revenues, but earnings for the year will be lower than anticipated.
The online auction company’s net income jumped to $255 million for eBay’s third quarter, an increase from $182.3 million for the same period in 2004, eBay said in an earnings announcement.
Its revenues were at the higher end of analyst expectations, reaching $1.11 billion for the quarter. Last year’s same period revenue was just under $806 million. For the year, eBay has revised its earnings forecast down to between 96 cents and $1.01 per share, where Wall Street had expected $1.03 per share.
In the announcement, eBay’s CFO Rajiv Dutta said the company had been focusing on spurring more use out of its US and German customer basis. And by adding reviews on the site, search engines can pick up that information and include it in search results, a way to get free placement in indexes like Google and Yahoo that can help drive traffic to eBay.
Dutta will be changing jobs soon. After eBay finds a replacement for him as CFO, Dutta will become president of Skype, the VoIP provider eBay purchased recently in a deal that could end up being worth $4.1 billion.
David Utter is a staff writer for WebProNews covering technology and business. Email him here.