But new station licenses drain profits
Shop at Home, which bills itself the country’s fastest-growing electronic retailer, reported a net loss of $485,000 for the quarter ended June 30 as revenues ratcheted up 48% to $30.1 million.
The Nashville-based company attributed the loss — versus a net profit of $546,000 in the year-earlier period — to increased interest and amortization of recently purchased FCC licenses for three television stations in San Francisco, Cleveland and Raleigh, N.C.
Shop at Home also said it expected to return to profitability in the latter half of this fiscal year and that its cash flow (or earnings before interest, taxes, depreciation and amortization) rose 57.1% to $2.3 million.
For its fiscal year, which also ended June 30, a 46% increase in revenues took Shop at Home’s annual total past $100 million, which president Kent E. Lillie called “an important milestone.”
“By virtue of our $30.1 million fourth quarter and anticipated continued growth,” Lillie said, “Shop at Home has become the third-largest electronic retailer (on TV) behind only QVC and Home Shopping Network.”
Lillie added that the company would consolidate its far-flung operations next month into a new 74,000-square-foot facility.
Improvements anticipated with the move include a larger workforce, a five-fold increase in call-center capacity, and the testing of such revenue-producing initiatives as direct mail and outbound telemarketing programs.
Shop at Home is the country’s 19th largest broadcaster in terms of market coverage, reaching more than 60 million cable households through a network of 100 affiliated television and cable systems, as well as its own stations in five of the country’s Top 30 markets.