Back to top

Analyst Blog

Liberty Media Corp. (LMCA - Analyst Report) reported weak financial results for the fourth quarter of 2012. Quarterly GAAP net income was $103 million or 87 cents per share compared with $122 million or a loss of 94 cents per share in the year-ago quarter. On the revenue front, it slumped 52% year over year to $467 million. Liberty Media currently has a Zacks Rank #3 (Hold).

In the fourth quarter of 2012, Liberty Media’s adjusted OIBDA came in at $77 million compared with $323 million in the year-ago quarter. Quarterly operating income was $25 million compared with $293 million in the prior-year quarter. In the previous quarter, Liberty Media repurchased 0.7 million shares for a total cash consideration of $109.5 million.

In 2012, Liberty Media generated $236 million of cash from operations compared with $276 million in the prior-year period. Free cash flow in 2012 was $205 million compared with $262 million in 2011. At the end of 2012, Liberty Media had $2,745 million of cash and cash equivalents compared with $3,929 million at the end of 2011. Total debt, at the end of 2012, was $540 million compared with $1,295 million at the end of 2011. At the end of 2012, debt-to-capitalization ratio was 0.08 compared with 0.09 at the end of 2011.

Starz LLC Segment

Revenue in the fourth quarter of 2012 was $423 million, up 5.8% year over year. Adjusted OIBDA was $102 million compared with $108 million in the year-ago quarter. Operating income was $87 million, showing a yearly decline of 12.1%. At the end of the reported quarter, total subscribers base of Starz notched up 9% to 21.2 million while its sister TV channel Encore had 34.8 million subscribers, up 5% year over year.

Recent Strategic Decisions

In January 2013, Liberty Media spun-off its Starz Entertainment division as a separate entity. Also in the same month, the company also acquired more than 50% control in SIRIUS XM Radio Inc. (SIRI - Analyst Report). In the reported quarter, Liberty Media raised its stake in Live Nation Entertainment Inc.(LYV - Snapshot Report) to around 27%. Earlier, the company invested in Barnes & Noble Inc. (BKS - Snapshot Report).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
CLAYTON WIL… CWEI 117.30 +1.78%