ShopNBC still isn't turning a profit, but executives at the Eden Prairie-based online and cable shopping company found good news in touting a slight -- though positive -- third-quarter operating profit on Thursday.
The company, publicly traded as ValueVision Media Inc., reported earnings before the deduction of interest, taxes depreciation and amortization expenses, or EBITDA, of $600,000, turning around a loss of $5.6 million during the same period a year ago.
The company cut its net loss by 55 percent, to $5.8 million, or a loss of 18 cents per share, for the quarter ended Oct. 30. Sales were up 11 percent to $132.3 million.
CEO Keith Steward heralded top-line growth and other gains. But echoing the same phrase he offered to investors three months ago, Stewart said: "We recognize there's much more work to be done."
ShopNBC is getting swept up in the expected merger of Comcast, the nation's largest cable and satellite provider, and NBC Universal. NBC has long been ShopNBC's largest shareholder.
If the Department of Justice and Federal Communications Commission approve the deal, Comcast will get NBC's stake, giving it control of more than 20 percent of the company. Comcast likely would get two board seats as well.
Comcast could help ShopNBC, the nation's third-largest home shopping network behind QVC and HSN, broaden its market reach significantly.
ShopNBC reaches 76 million homes through cable and satellite TV, but there are more than 10 million homes served by Comcast that don't carry ShopNBC, a situation Stewart described as "one gaping hole."
ShopNBC said Thursday that it will keep its naming affiliation with the television network for another year. Six months ago the company announced that it was using the Comcast-NBC merger to shop around for a new name. ShopNBC will issue $4 million in common stock for the one-year trademark license with NBC Universal.
Wall Street may not yet be convinced. Shares dropped almost 9 percent, to $2.95.
Jackie Crosby • 612-673-7335
