eBay has beaten analysts forecasts for the third quarter after announcing sales jumped 31% to $1.4 billion for the third quarter compared with the same period last year. Profits rose 10% to $367 million.
eBay’s online payment system Paypal grew particularly fast this quarter with revenue up 41%, contributing $350 million. Skype, the internet calling service that was purchased last year, grew revenue by 13% and increased the number of users to 136 million, contributing a further $50 million to revenue.
eBay’s core auction site showed signs of growth again after a weak second quarter. eBay changed prices for the auction listings in August, which encouraged sellers to use the site more frequently and helped drive sales.
Meg Whitman, the company’s chief executive said she was pleased with the strong performance in the second quarter and added that she was cautiously optimistic that the right balance between listings in online auctions and online stores had been achieved.