Online auction site eBay posted a 22-per- cent decline in profits Wednesday, as the slump in online sales hit its revenue.

The company said that income fell to 357.1 million dollars, compared to 459.7 million dollars a year ago. Revenue slumped eight per cent to 2.02 billion dollars as the value of the goods it sold through its auction business dropped 16 per cent to 10.8 billion dollars.

The earnings were posted just days after eBay said it would try to spin off its internet telephony business, Skype. In the first quarter, the unit posted 153 million dollars in revenue, a 21-per- cent gain over the same quarter a year ago.

Ebay's internet payments unit Paypal recorded strong growth, with revenue increasing 11 per cent to 643 million dollars and net total payment volume rising 10 per cent to
15.86 billion dollars.