Weak dollar boosts eBay profits

The results beat analysts' expectations

Profits at online auction site eBay have risen 22% as the weak dollar helped boost the value of the firm's international sales.

EBay's net income rose to $459.7m (�233m) in the first three months of 2008 from $377.1m in the same period a year earlier.

It also gave a rosy outlook for the rest of the year, forecasting annual revenues between $8.7bn and $9bn.

The firm now makes the bulk of its money outside the US.

Revenue rose 24% to $2.19bn, benefiting from growth in eBay's international businesses.

The effect of translating overseas currencies into dollars boosted quarterly sales by $110m.

EBay's figures surpassed analysts' expectations.

"I would say the international markets are important and right now they are benefiting from a weak dollar," said Martin Pyykkonen, internet analyst at Global Crown Capital.

The firm recently introduced pricing changes and customer service standards for eBay sellers that have raised the cost for some sellers to do business on eBay.

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