EBay Inc reported better-than-expected quarterly profit as the e-commerce company saw solid growth in its online marketplaces and an increase in transactions processed through its PayPal electronic payments business.
The operator of the world's largest online marketplace reported fourth-quarter net income of $2 billion, or $1.51 a share, compared with $559 million, or 42 cents a share, a year earlier. Revenue rose 35 percent to $3.38 billion.
EBay recognized a big gain from the sale of its remaining stake in Skype during the fourth quarter. Excluding that and other items such as stock-based compensation expenses, profit was $788.6 million, or 60 cents a share, in the latest period, the company said.
Analysts, on average, expected eBay to earn 57 cents a share on revenue of $3.32 billion, according to Thomson Reuters I/B/E/S.
EBay is riding a strong e-commerce growth wave as shoppers buy more items online and through smart phones and tablet computers.
The company benefits from this trend because its online marketplaces charge fees on transactions and other activity. The company's PayPal unit takes a small cut of a rising volume of electronic payments processed on its network.
EBay shares were up slightly at $30.93 in after-hours trading. The stock closed at $30.34 earlier on Wednesday.
(Reporting By Alistair Barr; Editing by Andre Grenon, Bernard Orr)