The company reported revenue for the last three months of 2008 of $2.04bn, a $145m decrease on 2007's fourth quarter figure of $2.181bn. The company reported $8.54bn of revenue for the whole of 2008.
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eBay blamed the fall on "the impact of a stronger dollar and macroeconomic conditions globally".
President and CEO John Donahoe said: "While the holiday season was tough and competitive, our overall results for 2008 were strong.
"We will build on our strengths in 2009 while managing our business prudently in the continued challenging environment."
eBay Inc's marketplaces business unit, which comprises eBay, Shopping.com, StubHub, Kijiji and other e-commerce sites, recorded $1.27bn in revenue, a 16% fall year-on-year. The company blamed the fall on a slow-down of the ecommerce market globally.
Average monthly unique visitors to eBay were also down, although it remained the most popular e-commerce site in the US, UK and Germany during the 2008 Christmas shopping period.
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