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