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Liberty Interactive Misses on Q1 Earnings, Revs

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Liberty Interactive Corp. reported disappointing financial results for the first quarter of 2014. Quarterly net income was $110 million or 22 cents per share compared with $53 million or 18 cents per share in the year-ago quarter. However, first-quarter 2014 earnings per share of 22 cents lagged the Zacks Consensus Estimate of 25 cents.

Quarterly total revenue of $2,447 million reflected a year-over-year improvement of 1% but fell below the Zacks Consensus Estimate of $2,509 million.

Quarterly total operating income came in at $244 million compared with $260 million in the year-ago quarter. In the reported quarter, consolidated adjusted operating income before depreciation and amortization stood at $431 million against $437 million in the year-ago quarter.

From Feb 1, 2014 through Apr 30, 2014, Liberty Interactive repurchased approximately 7.9 million Series A shares for a total consideration of $224.1 million. In the first quarter of 2014, Liberty Interactive generated $526 million of cash from operations compared with $100 million in the year-ago quarter. Free cash flow in the reported quarter was $438 million against $41 million in the prior-year quarter.

At the end of the first quarter of 2014, Liberty Interactive had total consolidated cash and marketable securities of $2,166 million compared with $2,757 million at the end of 2013. Liberty Interactive exited the reported quarter with $7,591 million of outstanding debt compared with $7,384 million at the end of 2013. The debt-to-capitalization ratio at first-quarter end was 0.49 compared with 0.48 at the end of 2013.

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

QVC Segment

Quarterly total revenue of the QVC segment was $1,986 million, up 1% year over year. Consolidated adjusted OIBDA was $412 million, up 2% year over year. Consolidated operating income stood at $260 million, remaining flat year over year.

Quarterly revenues of QVC U.S. inched up 1% year over year to $1,305 million. Gross margin was 36.4% against 36.1% in the prior-year quarter. Adjusted OIBDA stood at $301 million, up 3.4% year over year. Operating income was $186 million, up 3.3% year over year.

Quarterly revenues of QVC International rose 0.6% year over year to $681 million. Gross margin was 37.4% compared with 37.5% in the prior-year quarter. Adjusted OIBDA was $111 million, down 1.2% year over year. Operating income was $74 million, down 7.5% from the year-ago quarter.

eCommerce Segment

Quarterly revenues at the eCommerce segment totaled $461 million, remaining flat year over year. Quarterly adjusted OIBDA was $23 million, down 41% year over year. Operating loss was $1 million, up 105% year over year.




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