Not only are ad revenues improving for television, but TV shopping is also generating more money. ValueVision, which operates as ShopNBC on cable, posted a double-digit sales gain and a return to positive EBITDA in Q4.
Net sales were up 15.2% in the quarter to $178.8 million. That boosted the full year to a 6.5% gain, finishing with total sales of $562.3 million.
Adjusted EBITDA in Q4 was $8 million, reversing a $1.3 million loss in the final quarter of 2009. For all of 2010 ValueVision had adjusted EBITDA of $2.4 million, compared to a negative $19.4 million for 2009.
“Having markedly improved the business over the past two years under a new management team and committed employee base, we are now turning our full attention to driving top-line growth through a more diversified base of merchandise categories and broader product selection. While we believe in the growth potential of the business, we do expect some quarterly variability in our operating performance as we diversify our merchandise mix and test and launch new products, as well as from seasonal factors,” said CEO Keith Stewart.
NBC Universal already owns 6.4 million shares of ValueVision and is in line to receive more stock valued at $4 million in May 2011 for extending the license to use the ShopNBC name through May 2012. ValueVision had nearly 32.7 million shares outstanding at the end of 2010. At Wednesday’s closing price of $6.98 NBCU’s current 6.4 million shares were worth $44.7 million.
