Internet auction site eBay last night provided a cautious near-term outlook, reflecting concern over a weak US economy and changes to its auction business.
The company said revenue in the current quarter would be lower than expected, though it left its estimates for the full year relatively unchanged.
This overshadowed a 22% gain in net profits for its second quarter, ahead of Wall Street estimates.
Average selling prices for eBay fell in the second quarter due in part to more shoppers in the US and Britain shifting to lower-priced goods, executives said.
The company has been lowering upfront listing fees to attract more sellers in response to slower growth in its main auction business over the past three years.
EBay's Q2 net profits rose to $460m from $376m a year earlier. The company bought back 19 million shares worth $566m in the quarter, helping to lift earnings per share to 35 cents.
Revenue rose 20% to $2.2 billion, helped by a 27% rise in international sales, while US sales grew by only 12%.
Excluding share option and merger-related costs, earnings were 43 cents per share, two cents above what analysts had expected on average.
John Donahoe, who took over as chief executive in April, highlighted strength at its payment service PayPal, where revenue grew 33% to $602m. At eBay's Web-based call service, Skype, revenue rose 51% to $136m.
