PayPal brings eBay big profits

EBay proved to reach significant revenue over the second quarter with a 22% profit increase. The e-commerce giant reported a quarterly revenue of $2.2 billion, up by 20% ($361 million) over the revenue of $1.8 billion during the same time last year.

Thus the second quarter net income made up $460 million, or 35 cents per diluted share while on a non-GAAP basis, eBay claimed a profit of $568 million, or earnings per share of 43 cents.

“This was a strong quarter and we are very pleased with the performance of the portfolio, particularly with the growth generated by PayPal,” stated eBay President and CEO, John Donahoe. “We have made bold moves across the eBay marketplace to accelerate long-term growth. We remain confident in our strategies to improve the customer experience as we manage in an uncertain economic climate."

PayPal service brought $602 million in net revenue which was 33% higher against the same period in 2007.

$136 million were earned by Skype, the Internet phone service, that eBay bought in October 2005. This means a 51% year-over-year increase with 338.2 million registered users by the end of the quarter.

Net revenue guidance offered by eBay for the third quarter makes up $2.1 billion to $2.15 billion with earnings expected to be 39 cents to 41 cents per share in that period.