Ebay’s revenue drops

Ebay posted a net income of 673 million dollars in the third quarter, a 2 per cent decrease compared to 689 million dollars a year ago, the online auctioneer said Wednesday.

Sales rose by 12 per cent to 4.35 billion dollars, the company said, citing the success of PayPal.

PayPal, Ebay’s popular payments subsidiary, saw its revenue increase by 20 per cent to 1.95 billion dollars in the third quarter.

Last month Ebay and PayPal announced they will separate into two independent publicly traded companies in 2015.

The lucrative payment service is one of Ebay’s fastest growing segments.

“As we prepare to separate Ebay and PayPal in 2015, our teams are focused on strong execution to ensure each business is set up for long-term success,” said Ebay chief executive John Donahoe in a statement.

Ebay shares slipped as much as 5 per cent in extended trading following the announcement that the company reduced its full year revenue guidance to between 17.85 billion dollars and 17.95 billion dollars.

Originally the company had expected revenue between 18 to 18.3 billion dollars for the year.

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Ebay’s revenue drops