The TV shopping business appears to be recovering nicely. ValueVision, which operates under the name ShopNBC, reported $1.1 million of positive adjusted EBITDA for Q2. More importantly, that’s the fourth straight quarter that the figure was positive.
Net sales for the quarter were up 4.7% to $132.1 million. Adjusted EBITDA was $1.1 million, turning positive from a loss of $1.9 million a year earlier.
While television sales still account for the majority of ShopNBC’s business, that is approaching the tipping points. Internet sales increased 23% in Q2, which put Internet sales at 46.1% of total sales, up from 39.4% a year ago.
“For the fourth consecutive quarter, we posted net sales, gross margin and adjusted EBITDA improvements, including positive adjusted EBITDA,” said CEO Keith Stewart. “I am pleased with the gross margin progress our team continues to make and our ability to be nimble in response to changing consumer preferences. Additionally in Q2, we continued to lead the televised electronic retailing industry in driving sales via the Internet and mobile devices, which were up 23% vs. last year.”
“First half 2011 adjusted EBITDA of $4.2 million is the best we have achieved in over five years, and represents a $10.4 million improvement vs. last year. Also during the first six months, gross profit dollars are up double digits and our gross margin rate of 38% is a 10-year company record. Additionally, our national cable and satellite footprint increased by 4% vs. last year to approximately 79 million. This powerful mass distribution channel, which is heavily integrated into our Internet and mobile platforms, is a key differentiator of our business and driver of our long-term growth plan,” added CFO William McGrath.
NBC Universal licenses the ShopNBC name to ValueVision and remains a major shareholder. A stock sale earlier this year cashed out $48.3 million of preferred stock which had been held by GE Capital Equity Investments. That followed the sale by General Electric of its majority stake in NBCU to Comcast.