eBay net earnings climb with success of PayPal

SAN FRANCISCO: Online auction powerhouse eBay on Wednesday reported that its recent quarter net earnings surged due to the success of its Internet payments service PayPal.

Revenue for the quarter that ended September 30 rose just a percent to 2.25 billion dollars while net profit climbed 23 percent to 432 million dollars when compared to the same period a year earlier.

"We delivered strong third quarter results, with great performance at PayPal and stable results at eBay," said eBay chief executive John Donahoe.

"PayPal gained share globally and eBay continued to improve key metrics."

PayPal added more than a million new accounts monthly, ending the quarter with 90 million active accounts, according to eBay.

The company forecast that net revenue in the current quarter would tally from 2.39 to 2.49 billion dollars and that per-share earnings would range from 37 cents to 40 cents.

EBay stock rose 7.13 percent to 27.49 dollars in after-hours trading that followed release of the earnings figures.