Liberty Interactive Misses on Q4 Earnings, Revs

Zacks

Liberty Interactive Corp. (LINTA) reported weak financial results for the fourth quarter of 2013. Quarterly net income was $157 million or 31 cents per share compared with $174 million or 32 cents per share in the year-ago quarter. Fourth-quarter 2013 adjusted earnings per share of 36 cents lagged the Zacks Consensus Estimate of 43 cents.

Quarterly total revenue of $3,228 million reflected a year-over-year improvement of 3% but marginally below the Zacks Consensus Estimate of $3,229 million.

Quarterly total operating income came in at $404 million compared with $382 million in the year-ago quarter. In the reported quarter, consolidated adjusted operating income before depreciation and amortization stood at $618 million against $626 million in the year-ago quarter.

From Nov 1, 2013 through Jan 31, 2014, Liberty Interactive repurchased approximately 11.1 million Series A shares for a total consideration of $309.2 million. Recently, the board of directors of Liberty Interactive raised the share buy-back program by $1 billion.

In 2013, Liberty Interactive generated $1,360 million of cash from operations compared with $1,432 million in 2012. Free cash flow in 2013 was $1,008 million against $1,033 million in 2012.

At the end of 2013, Liberty Interactive had total consolidated cash and marketable securities of $2,757 million compared with $4,479 million at the end of 2012. Liberty Interactive exited 2013 with $7,384 million of outstanding debt compared with $7,884 million at the end of 2012. The debt-to-capitalization ratio was 0.48 compared with 0.45 at the end of 2012.

After Amazon.com Inc. (AMZN), QVC is the second-largest e-commerce retailer in the U.S. Liberty Interactive holds approximately 38% of HSN Inc. (HSNI) and about 22% of the equity and 57% of the total votes of all classes of TripAdvisor Inc. (TRIP) common stock. Liberty Interactive currently has a Zacks Rank #3 (Hold).  

QVC Segment

Quarterly total revenue of the QVC segment was $2,741 million, up 2% year over year. Consolidated adjusted OIBDA was $595 million, down 1% year over year. Consolidated operating income was $441 million, down 2% year over year.

Quarterly revenues of QVC U.S. inched up 6% year over year to $1,932 million. Gross margin was 34.7%, remaining same year over year. Adjusted OIBDA was $437 million, up 1.9% year over year. Operating income was $323 million, up 3.5% year over year.

Quarterly revenues of QVC International declined 6.4% year over year to $809 million. Gross margin was 37.8% compared with 37.1% in the prior-year quarter. Adjusted OIBDA was $158 million, down 9.2% year over year. Operating income was $118 million, down 13.9% from the year-ago quarter.

eCommerce Segment

Quarterly revenues of the eCommerce segment were $487 million, up 8% year over year. Quarterly adjusted OIBDA was $25 million, down 29% year over year. Operating loss was $21 million, down 46% year over year.

Read the Full Research Report on AMZN
Read the Full Research Report on LINTA
Read the Full Research Report on TRIP
Read the Full Research Report on HSNI


Zacks Investment Research

Rates

View Comments (0)