EBay marked a milestone. For the first time the San Jose, Calif.-based e-commerce giant’s quarterly revenue surpassed $1 billion.

EBay’s worldwide jewelry & watches division delivered $1.06 billion, a 36% increase over the prior year, the company said in a statement Thursday. Operating income totaled 335.6 million, a 26% increase over the prior year.

The Gross Merchandise Volume (GMV), the total value of all successfully closed listings on eBay’s trading platforms for jewelry and watches was $1.57 billion during the quarter, a 33% increase from GMV from 2004 totals.

EBay’s first-quarter profit increased to $256.3 million from $200.1 million in the same period a year ago. Revenue rose to $1.03 billion from $756.2 million in the first quarter of 2003.

Revenue from eBay’s U.S. marketplace totaled $404.8 million in the first quarter, up 20% from the same period a year earlier. The company’s international marketplace revenue was $393.8 million, representing 52% year-over-year growth.

Overall, the number of active eBay users increased to 60.5 million in the first quarter, up 34% from a year earlier. The number of items listed for sale was 431.8 million, up 32%.

JCK