eBay profits up 22 per cent to £283m

eBay has experienced solid first quarter revenue growth

Ebay's first quarter profit jumped to $562m (£283m), a rise of 22 per cent on the same period last year.

Revenue across the first three months of 2008 grew 24 per cent to $2.19bn (£1.1bn). Sales from the company's core auction business rose 19 per cent to $1.48bn (£747m), but the number of active users increased by just one per cent – the lowest quarterly rise in the site's history.

The results are the first to be published under new chief executive John Donahue. In February Donahue announced changes to the company's strategy, including changes to the site's fee structure and a renewed focus on customer services.

These policies have helped fuel the solid growth in first quarter sales. But the company said that advertising and classifieds were the drivers behind the rise in core revenue, rather than increase in the number of auctions taking place.

Donahue said: “The results reflect the strength provided by our diverse portfolio of businesses. Our stability and growth continues to give us the confidence to make innovative changes to our products to keep customers engaged for years to come.”