ENTERTAINMENT : QVC Profit Plunges 85%; Paramount Reports Loss

QVC Inc., the home shopping channel operator that lost its bid for Paramount Communications Inc., said Tuesday that its fourth-quarter profit fell 85%, while Paramount posted a $36.6-million loss for its latest quarter, as it warned it would a month ago.

The electronic retailer said it earned $2.8 million, or 6 cents a share, during the three months ended Jan. 31, down from $18.9 million, or 40 cents a share, a year earlier. The most recent period included an $18.8-million charge for its failed bid to buy Paramount. The write-off amounted to 36 cents a share.

Revenue climbed 9% to $372.5 million.

“Though obviously somewhat distracted while pursuing Paramount,” QVC Chairman and Chief Executive Barry Diller said, “we have not been deterred from our strategy to put in place an aggressive plan for growth in our basic business and the emerging world of interactivity.”

For the year, net income increased 8% to $59.3 million, or $1.18 a share, compared to $55.1 million, or $1.24 a share, a year earlier.

Per-share earnings fell because more shares were outstanding this year.

Revenue increased 14% to $1.22 billion.

QVC, which is based in West Chester, Pa., formed joint ventures in 1993 with companies in the United Kingdom and Mexico to bring them home shopping television channels. It recently announced a reorganization, changing its name to QVC Inc. from QVC Network Inc.

Paramount, which is being acquired by Viacom Inc. for nearly $10 billion, said the loss for the fiscal third quarter ended Jan. 31 amounted to 31 cents a share, compared to a loss of $66.8 million, or 56 cents a share, a year earlier. The loss a year ago reflected a onetime charge of $66.9 million for post-retirement benefits.

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Revenue for the latest quarter rose 7% to $1.01 billion from $943.7 million a year ago.

Paramount cited the weak performance of its holiday movies, including “Addams Family Values,” and a write-down in the value of programs at a cable channel operator in which it has a 50% stake, USA Network.

For the first nine months, Paramount earned $180.6 million, or $1.50 a share, up from $149.9 million, or $1.26 per share, a year ago. Revenue for the year rose 17.1% to $3.76 billion, from $3.21 billion a year earlier.