eBay’s Revenues And Profits Tumble

eBay has announced that in the first quarter its revenue dropped 8% and its profits a staggering 22%.

What’s the way forward for eBay? Things definitely aren’t looking too good for the Internet auction giant. Yesterday it announced its figures for the first quarter, and they make depressing reading, with revenues of $2.02bn, that’s 8% down on the same period in 2008, while profits were $357bn, which marks a precipitous 22% fall from the same time last year.

Speaking to reporters and analysts, eBay chief executive John Donahoe said:

"We delivered solid Q1 results, exceeding expectations in a tough economy. Overall, we’re a strong company operating in a challenging economic environment."

The big problem is eBay itself. The other companies owned by eBay seem to be relatively healthy, with online classifieds company Kijiji posting a 23% rise in revenue, while PayPal took in $643m in revenue, a 11% jump.

Skype enjoyed a 21% increase income to $153.2 million, but eBay has already said it’s spinning the company off and sending it public.