EBay profits shoot up despite Google Checkout launch

EBay, the leading internet auction website, has announced an increase in net profits of 50 per cent for the second quarter. Although new listings actually fell by six per cent over the period, revenue was up by 26 per cent. Over the quarter to the end of June, profits rose to £183.1 million.

The results would appear to show that eBay's PayPal payment system has yet to be seriously challenged by Google's Checkout, in spite of a recent run-in between the companies. In the second quarter, revenue from PayPal increased by 34 per cent, reaching a total of £221 million.

The website has been boosted by higher auction fees and a greater number of "active" eBay users around the world - clearly illustrating the growing trend for consumers to favour online shopping over the high street.

Meg Whitman, eBay president and chief executive, said: "The quarter was a very good one for the company, as our portfolio of businesses continued to deliver value to our global community."