January 24, 2008, 12:00 AM

eBay’s 2007 merchandise sales grow 13.1% to $59.3 billion

EBay’s revenue for the year reached $7.67 billion, up 29% from 2006’s $5.97 billion. Net income was $348 million, a 69% drop from $1.12 billion in 2006.

Total sales of goods at eBay.com in 2007 reached $59.35 billion, up 13.1% from $52.47 billion in 2006, eBay Inc. reports. Fourth quarter sales in what eBay describes as “gross merchandise volume” were $16.21 billion, up 12% over the fourth quarter of 2006. The number of new listings was up 4% to 637.2 million from 610 million a year earlier.

EBay’s revenue for the year reached $7.67 billion, up 29% from 2006’s $5.97 billion. Net income was $348 million, a 69% drop from $1.12 billion in 2006, with those results including a previously reported goodwill impairment charge of $1.39 billion recorded in the third quarter.

In the fourth quarter, eBay’s revenue was $2.18 billion, up 27% from $1.72 billion year ago. Net income rose 53% to $531 million from $346 million.

Fixed-price sales, or non-auctions, represented 42% of all sales, up from 38% a year earlier. At the end of the fourth quarter, eBay reported 83.2 million active users, up from 81.8 million in the year-ago quarter. The number of stores hosted on eBay dropped 10% in the quarter to 532,000 stores, from 593,000 a year earlier.

EBay breaks its business into three units: Marketplaces, where goods are bought and sold and which includes comparison shopping engine Shopping.com and other e-commerce sites such as event ticket provider StubHub as well as eBay.com; Communications, which includes Internet telephone service Skype; and Payments, which includes PayPal.

For the quarter, Marketplaces recorded $1.42 billion in revenue, representing 18% year-over-year growth. Revenue growth was driven by StubHub, advertising, the fixed price format on eBay and also by the benefit of a weaker U.S. dollar, with 54% of Marketplaces revenue for the quarter coming from outside the U.S. For the year, Marketplaces revenue reached $5.13 billion.

Skype in the fourth quarter contributed $115 million in revenue, a 79% year-over-year gain. Skype had more than 276 million registered users worldwide at the end of the quarter. Full-year revenue was $377 million.

The Payments operation’s revenue totaled $539 million for the quarter, a year-over-year increase of 34%. For the year, it reached $1.83 billion. Net total payment volume was $14 billion, a 35% gain over last year’s fourth quarter. Revenue growth and net total payment growth represent increased penetration of PayPal on eBay as well as expanded adoption of PayPal Merchant Services at locations off eBay throughout the web, the company says. EBay Merchant Services represented 44% of PayPal’s net total payment volume, up from 35% a year ago.

For the quarter, eBay reported 57.3 million active registered PayPal accounts, up 5% from last year’s fourth quarter.

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