eBay Profits Suprisingly Down 31%

You'd think people would be doing more second hand buying and selling during these times...

Hopefully we’re getting to the last of these…

Proving just what financial freaks the Apple Q2 and Google Q4 results were eBay has continued the theme of everyone else and posted rubbish figures for its latest quarter.

Q4 Revenue? ”Down” seven per cent on the same period last year to $2.04bn. Profit? ”Down” a huge 31 per cent to $367m. Even web traffic: ”down” four per cent on last year, despite the increasing number of people regularly going online around the world. The web’s most visited retail site also announced it laid off 1,600 staff during Q4, approximately one in ten of its global workforce.

Against this the eBay owned PayPal and Skype businesses saw 11 per cent and 26 per cent rises in revenue to $623m and $145m respectively to help restrict the damage. It also mean over the full year the eBay group posted a net profit of $1.78bn which was actually a slight increase on 2007 which totalled $1.738bn (though it was officially just $348m due to a goodwill amortisation worth $1.39bn).

“While the holiday season was tough and competitive, our overall results for 2008 were strong,” said eBay CEO John Donahoe at his most plucky in a statement. “We will build on our strengths in 2009 while managing our business prudently in the continued challenging environment.”

Now you’d think during such strained economic times that a site like eBay would boom with everyone looking to monetise their second hand possessions and grab some bargains but it’s clear in a “continued challenging environment” (s)we aren’t that smart(/s) things don’t work like that… yay. Aren’t recessions fun!

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