Business

eBay's profit forecast falls short of estimates

  • 17 October 2013
  • From the section Business
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EBay's PayPal business continued to see big revenue rises

The online auction and retail giant, eBay, has delivered a lower-than-expected sales and profit forecast for its fourth quarter.

Blaming slowing growth in online shopping rates in the US, the firm said it expected sales of between $4.5bn (£2.8bn) and $4.6bn for the holiday period.

Shares in the company fell as much as 5% on the news in extended US trading.

The quarter is a key shopping period for the firm.

Weak conditions

Ebay says it has seen weaker economic conditions in the United States.

"US e-commerce softened considerably and we have a cautious outlook for the holiday season," Chief Financial Officer Bob Swan told investors on a conference call.

Ebay reported net income for the third quarter of $689m, up 15% on the same period last year.

Sales rose 14% to $3.89bn, helped by growth in mobile trading on the eBay auction site.

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