Financial Times FT.com

Ebay tries to allay fears of slowing growth

By Richard Waters in San Francisco

Published: May 5 2006 00:25 | Last updated: May 5 2006 00:25

Ebay executives on Thursday tried to shake off concerns about slowing growth in the company’s core auction markets as they outlined plans to take the company into new and faster-growing parts of e-commerce.

Speaking at the company’s annual analyst meeting, Meg Whitman, chief executive, also brushed off suggestions that new services launched recently by Google, from its free Google Base listings service to an online payments system, threatened Ebay.

“I think we have really strong positions,” she said of the company’s e-commerce, online payments and communications businesses, while adding that its three clearly focused brands around these areas – Ebay, Paypal and Skype – left it with three of the five best-known internet brands.

Ebay’s shares have slumped this year amid concerns of competition from Google, as well as fears that its established business is slowing, particularly outside the US. International growth slowed to 18 per cent in the first quarter of this year.

The international slowdown showed that international markets had passed their “hyper-growth” phase and were also becoming more seasonal, company executives said.

They also pointed to severe competition in Asia, particularly in South Korea and China, the second of which was a big focus of investment last year.

A move into selling new, “in-season” items, in competition with online retailers, represented one of the best opportunities to add to the growth, Ms Whitman said.

Fixed-price sales on Ebay, as opposed to auctions, already accounted for 34 per cent of transactions last year, and the company last week launched a new website, Ebay Express, to increase its appeal to shoppers who were not attracted to its traditional auctions.

Ms Whitman said that it could be two to three years before the company started to see the benefits from integrating Skype, the VoIP service acquired last year.

More from this sector

Lachlan Murdoch joins forces with DMGT

Dogan tax case heads for court as talks fail

BBC ponders destiny of Worldwide

TV catch-up services on Freesat

Telefónica buys Digital Plus stake

Tivo re-enters UK market

Facebook paves way for IPO

Facebook in lawsuit over unauthorised charges

Washington Post to close US bureaux

BBC holds talks over floating Worldwide

Informa eyes deal for Springer

Jobs and classifieds

Jobs

Search
Type your search criteria below:

Deputy Finance Director

Department for Work and Pensions

Global Head of Aftersales

Material Handling Capital Equipment

Executive Director

Harvard Shanghai Center

Chief Executive Officer

Financial Services Group

Recruiters

FT.com can deliver talented individuals across all industries around the world

Post a job now