West Chester-based QVC Group reported an $80 million loss in the third quarter, triggering a drop in its share price of almost 40 percent, writes Jeff Blumenthal for the Philadelphia Business Journal.
The home shopping giant continues to battle falling television viewership and mounting debt. Its latest loss far exceeds the $23 million reported a year earlier, with revenue dropping 5.6 percent year over year to $2.21 billion in the third quarter.
During Wednesday’s earnings call, QVC Group CFO Bill Wafford reported a cash leverage ratio of 4.2 to 1.
He warned that if the figure exceeds 4.5 to 1 without lender forbearance, the company’s debt could mature ahead of its current Oct. 27, 2026, deadline. QVC Group’s total long-term debt now stands at $5.8 billion.
In its quarterly filing with the SEC, the company warned it may not be able to stay in compliance with its loans.
“While the Company believes its plans to refinance or restructure its indebtedness can alleviate the conditions that raise substantial doubt, these plans are not entirely within the Company’s control, therefore substantial doubt about the Company’s ability to continue as a going concern exists,” QVC Group said.
Read more about QVC Group’s third quarter losses in the Philadelphia Business Journal.
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