The cash register continues to ring for Barry Diller’s QVC Network, which saw net profits for the second quarter bounce 53%.
For the period ended July 31, the cable shopping channel’s net was $ 13.3 million (26 cents a share), up from $ 8.7 million (22 cents) in the comparable period a year earlier.
Operating earnings, which include a $ 3.8 million provision for costs in settling litigation with Shop Television Network, were up 30% to $ 23.9 million in the quarter compared with the comparable period last year.
For the first half, net profits soared 75% to $ 34.9 million (70 cents a share), thanks largely to a change in accounting on income taxes.
Revenue for the six months jumped 18%, to $ 535.7 million. For the second quarter, revenue was up nearly 19% to $ 262.4 million.
During a active quarter for the company, QVC entered a tentative agreement with BSkyB to create a European shopping channel, initiated a merger process with rival Home Shopping Network and announced a change for sister channel QVC the Fashion Channel.
The latter will bow anew in spring 1994 as Q2, with former Time Life Television and Video prexy Candice M. Carpenter in the process of developing the project (Daily Variety, July 30).
Diller, who was behind the creation of the Fox Broadcasting Co., has been at the helm of QVC less than a year. He started shopping with a $ 25 million buy (Daily Variety, Dec. 11) and took over as chairman and chief executive in January.
The nation’s second-largest cable shopping channel, QVC is transmitted 24 hours a day and reaches more than 45 million cable homes and 3 million homes with satellite dishes. The company’s biggest shareholders are Liberty Media and Comcast Corp, with a combined holding of about 53%.
QVC stock was down 2 1/4 points to $ 66.75 on Thursday.