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eBay claims a return to stability

eBay says it has stabilised in the economic downturn, despite posting second quarter profits of $327m, down from $460m a year ago.

Revenue...

eBay says it has stabilised in the economic downturn, despite posting second quarter profits of $327m, down from $460m a year ago.

Revenue was also down 4% to 2.1bn, but eBay chief executive John Donahoe put a positive spin on the results, saying they outperformed analyst expectations.

"We drove solid second quarter results, with strong momentum and market-share gains at PayPal and continued stabilisation in our core eBay business," Donahoe said

The e-commerce company has been hard hit by the recession, with lower consumer spending and fewer online visitors.

PayPal brought in $669m, an increase of 11%, but eBay's core markets took in $1.26bn - a 14% decline from a year earlier.

Analysts ascribe eBay's better-than-expected performance to Donahoe's efforts to turn the company's fortunes around, according to the Financial Times.

Donahoe's strategy includes trying to woo back small sellers by eliminating some listing fees.

The changes are widely believed to be responsible for reducing the decline of revenue and volume of sales, according to the Wall Street Journal.

eBay's revenue decline slowed to 14% compared with 18% in the first quarter and the drop in sales volume slowed to 10% compared with 16% in the previous quarter.

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