Liberty Interactive Corp. reported mixed financial results in the second quarter of 2017. While the top line missed the Zacks Consensus Estimate, the bottom line met the same.
Quarterly GAAP net income came in at $111 million or 41 cents per share compared with $376 million or 26 cents per share in the prior-year quarter. Quarterly earnings per share of 41 cents were in line with the Zacks Consensus Estimate.
Quarterly total revenue of $2,346 million reflected a year-over-year decrease of 3.2% missing the Zacks Consensus Estimate of $2,408 million.
Quarterly total operating income came in at $265 million compared with $254 million in the year-ago quarter. In the reported quarter, consolidated adjusted operating income before depreciation and amortization (OIBDA) was $488 million compared with $487 million in the year-ago quarter.
In second quarter of 2017, Liberty Interactive generated $357 million of cash from operations compared with $377 million in the prior-year quarter. Free cash flow in the reported quarter was $313 million compared with $303 million in the year-ago quarter.
At the end of second-quarter 2017, Liberty Interactive had total cash and marketable securities of $905 million compared with $825 million at the end of 2016. The company exited second-quarter 2017 with $7,896 million of outstanding debt compared with $8,042 million at the end of 2016. The debt-to-capitalization ratio at the end of the reported quarter was 0.48 compared with 0.51 at the end of 2016.
Quarterly revenues at the QVC division were down 4% year over year to $1,979 million. Revenues from the QVC U.S. segment were $1,367 million, down 4% year over year. Revenues from the QVC International segment were $612 million, down 4% year over year. QVC U.S. adjusted OIBDA was $361 million, down 1% year over year while QVC International adjusted OIBDA was $107 million, up 7% year over year.
Quarterly revenues at the zulily segment totaled $367 million, flat year over year. Quarterly adjusted OIBDA was $26 million, down 16%. Meanwhile, operating loss was $29 million in the reported quarter compared with an operating loss of $43 million in the prior-year quarter.
In Jul 2017, Liberty Interactive announced that its QVC division plans to acquire the remaining 68% of the fellow home-shopping platform HSN Inc. in an all-stock deal valued at $2.1 billion. QVC already owns 38% of HSN Inc. The newly combined company will have $14 billion in revenue and 23 million customers around the world. The merged entity will also result in the third-largest online site, behind only Amazon.com Inc. (AMZN - Free Report) and Wal-Mart Stores Inc.’s (WMT - Free Report) e-commerce business. Liberty Interactive currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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