Online auction site eBay has announced revenue for quarter four of 2008 was 7 percent down on last year at $2.07bn (£1.5bn).

The figure failed to meet the $2.12bn revenue prediction which had been forecast by analysts. The company's net income was also below target. At $367m, it was nearly 31 percent lower than 2007, when the figure was $531m.

eBay's net profits were listed at $524m and $0.41 per share, which was better than analysts expectations of $0.39 per share, said Thomson Reuters.

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"While the [Christmas] season was tough and competitive, our overall results for 2008 were strong," said eBay chief executive John Donahoe.

"For 2008, we delivered double-digit revenue and earnings growth; made significant changes in our eBay business; and built a stronger, more diverse portfolio of leading e-commerce businesses. We will build on our strengths in 2009 while managing our business prudently in the continued challenging environment."

See also: eBay buys PayPal competitor for $1bn