Ebay predicts fourth quarter surge in profits

E-commerce giant Ebay forecasted a rise in fourth quarter profits above analyst estimates tonight, despite its rival Amazon announcing last week that its profits will disappoint across the upcoming holiday period.

Shares in Ebay, which also beat estimates on profit for its third quarter, rose six per cent in after-hours trading.

Net income for the three months to the end of September rose to $721m (£567m), up from $520m a year earlier. Revenue, on the other hand, met analyst expectations to report $2.65bn for the third quarter.

The results come just one day after chancellor Philip Hammond revealed plans for a digital services tax, which would see the firm hit with a two per cent tax on revenue. Ebay was hit with an additional £7m tax bill in 2017, following a review by HMRC.

“This quarter we continued to make foundational investments to improve the long-term competitiveness of our marketplace while setting the stage for significant growth opportunities,” said Devin Wenig, president and chief executive of Ebay.

“We will continue to innovate the customer experience while executing our growth initiatives in payments and advertising to position Ebay for future success.”