Auction site operator eBay has reported a 26% rise in profits for the last three months thanks largely to increased use of its PayPal service.

eBay's business includes online payments as well as internet auction sites.

Profits for the quarter totalled $412m (£272m), the company said, up from $327m a year ago.

Sales were up 20% internationally, but rose only 2% in the US, demonstrating its reliance on international growth.

Ebay’s online payments business, which includes PayPal, saw revenues rise by 22%.

“We are not satisfied with our US results,” said John Donahoe, eBay’s chief executive, in a conference call with investors.

He said the strengthening dollar was also a concern, reducing the value of sales made abroad.

EBay also cut its profit forecast for the year in the expectation that the dollar with strengthen further against international currencies.

News item courtesy of www.bbc.co.uk/news