QVC’s domestic revenue increased 3 percent in the fourth quarter, to $1.7 billion, and 5 percent, to $5.2 billion, for the year, the home shopping network’s parent Liberty Media Corp. reported Monday.
Sales of electronics, beauty and accessories increased while jewelry sales declined.
QVC U.S. operating income decreased 2 percent to $261 million for the fourth quarter and increased 12 percent to $782 million for the year.
Last week HSN reported a 4 percent increase in fourth quarter revenue, to $636.8 million, and a 5 percent jump for 2010, to $2.12 billion.
QVC’s average selling price for the fourth quarter increased 11 percent from $50.37 to $56.00 while total units sold decreased 6 pervent to 33.2 million. For the year, the average selling price increased 4 percent from $49.01 to $51.19 and units sold increased 2 percent to 110.6 million.
Returns as a percent of gross product revenue increased from 16.4 percent to 16.8 percent for the quarter and increased from 17.6 percent to 18 percent for the year. QVC.com sales as a percentage of U.S. sales grew from 31 percent in the fourth quarter of 2009 to 36 percent in the fourth quarter and grew from 29 percent to 33 percent for the year.
QVC U.S. adjusted OIBDA decreased 1 percent for the fourth quarter and increased 8 percent for the year. Overall, the U.S. adjusted OIBDA results were negatively impacted by $9 million for the quarter and $14 million for the year due to the change in terms of QVC’s arrangement with GE Money Bank for its QCard that was effective in August 2010, as previously disclosed. Excluding the negative impact of this arrangement, the U.S. adjusted OIBDA increased 1 percent and 9 percent for the fourth quarter and year ended Dec. 31, respectively.
QVC’s consolidated revenue, which includes its domestic and international networks, increased 4 percent in the fourth quarter, to $2.5 billion, and 6 percent, to $7.8 billion, for the year. Adjusted OIBDA increased 1 percent, to $533 million, in the fourth quarter and 7 percent, to $1.7 billion, for the year.
Operating income increased 1 percent to $393 million in the fourth quarter and 11 percent to $1.1 billion for the year. Excluding the negative effects of a new agreement with GE Money Bank and the launch of a network in Italy, adjusted OIBDA increased 5 percent in the fourth quarter and 10 percent for the year.
QVC’s international revenue increased 7 percent in the fourth quarter to $802 million and 8 percent for the year to $2.6 billion including the impact of unfavorable exchange rates in the United Kingdom, Germany and Italy and favorable exchange rates in Japan. International adjusted OIBQVC’s consolidated revenue increased 4 percent in the fourth quarter, to $2.5 billion, and 6 percent, to $7.8 billion for the year.
“Our fourth quarter results continued the positive trend with our consolidated adjusted OIBDA margin, excluding our start up operations related to Italy and the negative impact of our new agreement with GE Money Bank, improving 24 basis points over a particularly strong fourth quarter in 2009,” QVC president and CEO Mike George said in a canned statement.
“For 2010, we had some of the most balanced results across markets that we have seen in many years,” he said. “Every established market increased revenue growth and adjusted OIBDA margins, achieved strong eCommerce growth and enjoyed growth in the count of new customers. We made continued progress in broadening the appeal and accessibility of our brand across both markets and platforms. Among the highlights of our achievements this year, we launched a number of exciting new platforms – from mobile applications to second channels and simulcasts; we continued to elevate our products and brands and engaged our viewers with compelling programming including big events like Fashion’s Night Out; and with Italy, we launched our first new market in a decade.”
Homeshoppingista's Blog By Linda Moss 