Liberty Interactive Misses on Q3 Earnings
Liberty Interactive Corp. (LINTA) reported mixed financial results for the third quarter of 2013. Quarterly net income was $77 million or 15 cents per share compared with $38 million or 7 cents per share in the year-ago quarter. Third-quarter 2013 earnings per share of 15 cents fell below the Zacks Consensus Estimate of 18 cents.
Quarterly total revenue of $2,245 million reflected a yearly improvement of 2.2% and above the Zacks Consensus Estimate of $2,240 million.
Quarterly total operating income came in at $205 million compared with $189 million in the year-ago quarter. In the reported quarter, consolidated adjusted operating income before depreciation and amortization was $396 million, remaining same year over year. In the reported quarter, Liberty Interactive repurchased approximately 12.4 million Class A shares for a total consideration of $303.3 million.
In the first nine months of 2013, Liberty Interactive generated $751 million of cash compared with $944 million in the year-ago period. Free cash flow in the reported period was $534 million against $579 million in the prior-year period.
At the end of the third quarter of 2013, Liberty Interactive had total consolidated cash and marketable securities of $2,876 million compared with $4,479 million at the end of 2012. Liberty Interactive exited the reported quarter with $7,034 million of outstanding debt compared with $7,884 million at the end of 2012. The debt-to-capitalization ratio was 0.33 compared with 0.45 at the end of 2012.
According to Internet Retailer, after Amazon.com Inc. (AMZN), QVC is the second-largest e-commerce retailer in the U.S. Liberty Interactive holds approximately 38% in HSN Inc. (HSNI) and about 22% of the equity and 57% of the total votes of all classes of TripAdvisor Inc. (TRIP) common stocks. Liberty Interactive currently has a Zacks Rank #3 (Hold).
QVC Segment
Quarterly total revenue of the QVC segment was $1,947 million, up 2% year over year. Consolidated adjusted OIBDA was $408 million, up 3% year over year. Consolidated operating income was $259 million, remaining same year over year.
Quarterly revenues of QVC U.S. inched up 5% year over year to $1,303 million. Gross margin was 37.1% compared with 36.1% in the year-ago quarter. Adjusted OIBDA was $304 million, up 9.4% year over year. Operating income was $191 million, up 10.4% year over year.
Quarterly revenues of QVC International declined 5% year over year to $644 million. Gross margin was 37.4%, remaining same year over year. Adjusted OIBDA was $104 million, down 12.6% year over year. Operating income was $68 million, down 21.8% from the year-ago quarter.
eCommerce Segment
Quarterly revenues of the eCommerce segment were $298 million, up 7% year over year. Quarterly adjusted OIBDA was a negative $5 million, down substantially by 225% year over year. Operating loss was $46 million, up 18% year over year.
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