eBay bolstered by Skype and PayPal results

eBay has released its latest quarterly results, showing strong performances from its Skype and PayPal subsidiaries.

Skype has done particularly well, reporting $126m (£63.5m) in revenue for the first quarter of this year — a figure representing 61 percent year-on-year growth. The internet-telephony service gained 33 million registered users during the quarter. Now with 309 million registered users, Skype has the largest registered user base in eBay's entire portfolio.

PayPal, the online-payments service, showed 32 percent year-on-year growth in net revenue, pulling in $582m (£293m) during the quarter. Overall, eBay posted first-quarter revenues of $2.19bn (£1.1bn) — an increase of 24 percent on the same quarter last year.

"This was a very strong financial quarter for the company," said eBay president and chief executive John Donahoe on Wednesday. "The results reflect the strength provided by our diverse portfolio of businesses. Our stability and growth continues to give us the confidence to make innovative changes to our products to keep customers engaged for years to come."

Donahoe only took the helm at eBay on 31 March, so the first-quarter results can be attributed to his predecessor, Meg Whitman.

eBay bought Skype in 2005 for £1.3bn in a deal that many have seen, until recently, as overvaluing the business. PayPal was acquired by the auction giant in 2002 for £935m.