eBay profits jump 20% on Paypal growth

eBay offices, San Jose, California
Image caption EBay is near the end of a three-year turnaround plan

Internet auction giant eBay has reported a sharp rise in quarterly profits thanks in large part due to strong growth at its Paypal division.

Net income for the first three months of the year was $476 (£286m), a 20% rise on the $398m recorded a year earlier. Revenue rose 16% to $2.55bn.

EBay is coming to the end of a three-year plan to revitalise its business.

"The year is off to a strong start," said the group's chief executive John Donahoe.

"In the first quarter, Paypal continued to drive strong growth globally, eBay sharply accelerated growth in the US and we announced several acquisitions that we believe will enhance our leadership and innovation in commerce and payments," he added.

The number of Paypal accounts grew by 16% on a year earlier, the company said, while sales volumes excluding vehicles at its online marketplace grew by 8% to $14.5bn.

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