QVC’s Second-Quarter Revenue Increases 4 Percent, To $1.4 billion

QVC’s second-quarter revenue was up 4 percent, to $1.4 billion, from the year-ago period with operating income rising 11 percent, the home shopping network’s parent, Liberty Interactive Corp., reported Wednesday.

Units sold increased 4 percent, average selling price per unit increased 3 percent to $58.51 and returns as a percentage of gross product revenue were virtually flat.

The U.S. home shopping network experienced growth in all categories except electronics, according to Liberty.

E-commerce revenue increased 11 percent to $655 million and grew to 47 percent from 43 percent of total U.S. revenue.

The revenue from QVC’s international networks took a hit in the quarter, down 11 percent to $592 million.

QVC’s consolidated revenue, which includes its domestic network and its global channels, dipped 1 percent to $2 billion.

“We delivered a terrific quarter with strong and balanced results across markets, platforms, product categories and customer segments,” QVC President and CEO Mike George said in a canned statement.

“We generated local currency revenue growth and adjusted OIBDA improvement in every one of our consolidated markets,” he said.

“Our e-commerce growth accelerated significantly and we continued to extend our mobile penetration. We produced strong margin expansion despite investing in new shipping and handling policies in the U.S. and start-up expenses associated with the launch of QVC France,” George said.

“Our overall customer base and our new customer additions increased at some of the strongest rates in years,” he said. “Our strong quarter reflects our disciplined execution of strategies aimed at extending our leading global video and e-commerce position.”

Despite the business’ investment in new shipping and handling policies, adjusted OIBDA increased 7 percent to $349 million and adjusted OIBDA margin increased 78 basis points to 24.8 percent. These gains were primarily due to improved product margins, higher credit card income and lower bad debt and marketing expenses, which were partially offset by lower shipping and handling revenue.

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