ST. PETERSBURG, Fla. — Home Shopping Network reported earnings rose 19.1 percent in the second quarter ended June 30, to $1.9 million from $1.6 million a year earlier.
Per-share earnings were 2 cents in each period on slightly fewer shares a year ago.
The latest quarter included a $2.9 million pretax loss on the proposed sale of a wholly owned subsidiary. A spokeswoman declined to disclose details.
Earnings before interest, taxes, depreciation and amortization rose 32.3 percent in the quarter to $11.2 million against $8.4 million a year earlier.
“While operating results were below our expectations, they still showed solid improvements over a year ago,” said Gerald F. Hogan, president and chief executive officer.
HSN has been investing in new marketing and merchandising strategies such as HSN Direct, an infomercials division, and developing more private label brands. While these initiatives put short-term pressure on earnings, Hogan said they should result in a “significant positive impact in the future.”
In the half, net earnings were $8.6 million, or 9 cents, against a year-ago loss of $22.2 million. The year-ago loss included a $22.7 million inventory reserve and a $7.2 million charge for early payment of debt.
Sales in the latest six months rose 12 percent to $548.2 million from $489.7 million.
— Fairchild News Service