Online auction site eBay sees revenues hit £863m

Published on Friday 26 January 2007 00:56

INTERNET auction operator eBay has reported record quarterly sales, helped by strong demand in the UK and Germany.

Total revenues for the final three months of 2006 jumped to $1.7 billion (863 million), a rise of 29 per cent over the previous year, while net income grew by 24 per cent to $346m. The group said all its markets enjoyed a "very strong quarter" as average selling prices increased in a "robust online holiday shopping season".

A surge in users, particularly from its home market in the US, the UK and Germany, meant it sold $14.4bn worth of merchandise in the quarter, up by a fifth from 2005. For the full year, revenues topped $6bn.

Chief executive Meg Whitman said: "The fourth quarter was excellent, bringing 2006 to a very good close."

Computer games consoles were the hottest selling items in the final quarter, particularly the Nintendo Wii and Sony's PlayStation3, while an increased number of cars were also sold through the site.

Total registered users jumped by 23 per cent by the end of the year to 222 million, up from 181 million in 2005.