Solid Revenue and Adjusted OIBDA Growth at both Liberty Interactive
Group and Liberty Entertainment Group ENGLEWOOD, Colo., Aug. 11
/PRNewswire-FirstCall/ -- Liberty Media Corporation ("Liberty")
(NASDAQ:LCAPA/BNASDAQ:LINTA/BNASDAQ:andNASDAQ:LMDIA/B) today
reported second quarter results for Liberty Capital group, Liberty
Interactive group and Liberty Entertainment group. Financial
highlights for the quarter included: -- Liberty Interactive group's
revenue increased 9% and adjusted OIBDA increased 4%. -- QVC's
consolidated revenue increased 4% to $1.76 billion and adjusted
OIBDA increased 1% to $387 million. -- Starz Entertainment's
revenue increased 8% and adjusted OIBDA increased 24%. --
Repurchased 18.1 million Liberty Capital shares through July 31st,
or 14% of shares outstanding. -- Through the DIRECTV share buyback,
Liberty's economic ownership of DIRECTV increased to over 49%,
voting control remains at 48% per a standstill agreement. "Liberty
continued its solid operating and financial performance in a
difficult environment. Several businesses, including DIRECTV,
Starz, and our e-commerce companies, delivered excellent results,"
stated Liberty president and CEO Greg Maffei. "We also continued
our focus on balance sheet management, taking advantage of market
weakness to repurchase 18.1 million shares of Liberty Capital,
reducing outstanding shares by 14%. DIRECTV also continued its
buyback increasing our economic ownership to over 49%." During the
quarter, Liberty announced the purchase of two e-commerce
companies. The assets of Red Envelope, an online gift retailer,
were purchased out of bankruptcy in June and will become part of
the Provide Commerce portfolio which includes ProFlowers, Secret
Spoon, Cherry Moon Farms and Shari's Berries. Further, Liberty
signed a definitive agreement to purchase Celebrate Express, a
leading online and catalog retailer of party supplies and costumes
marketed under the brands Birthday Express, 1st Wishes and Costume
Express. Celebrate Express' products and brand are complementary to
BUYSEASONS, Inc., the Internet costume and party retailer acquired
by Liberty Media in 2006, and creates the stand-out leader in the
online party, costume and Halloween industry. This transaction is
expected to close in September. LIBERTY INTERACTIVE GROUP -- The
businesses and assets attributed to Liberty Interactive group are
engaged in, or are ownership interests in companies that are
engaged in, video and on-line commerce, and currently include
Liberty's subsidiaries QVC, Provide Commerce, Backcountry.com,
Inc., Bodybuilding.com, LLC and BUYSEASONS, Inc. and its 30%
interest in IAC/InterActiveCorp, 24% interest in Expedia and 20%
interest in GSI Commerce. Liberty has identified wholly-owned QVC,
Inc. as the principal operating segment of Liberty Interactive
group. Liberty Interactive group's revenue increased 9% and
adjusted OIBDA increased 4% for the quarter. The increases are
primarily driven by growth at QVC and Provide Commerce and the
impact of the Backcountry.com, Inc. and Bodybuilding.com, LLC
acquisitions in June 2007 and December 2007, respectively. QVC
QVC's consolidated revenue increased 4% in the second quarter to
$1.76 billion and adjusted OIBDA increased 1% to $387 million. "The
challenging economic environment continues, however we are pleased
with our disciplined approach to margin, expense and capital
management," stated Mike George, QVC President and CEO. "We are
excited about several product, programming and distribution
initiatives planned for the second half of the year to offer our
customers a compelling shopping experience which will further
differentiate us from other retailers. Internationally, Japan has
been a bright spot as sales momentum continues to increase." QVC's
domestic revenue decreased slightly in the second quarter to $1.181
billion. Adjusted OIBDA decreased 2% to $286 million in the
quarter. For the quarter, the mix of product sold shifted to the
accessories area from the home and jewelry categories. The average
selling price increased 6% from $44.83 to $47.39 while the total
number of units shipped declined 4% to 27.6 million from 28.8
million. Returns as a percent of gross product revenue increased
due to product mix shifts and higher average selling prices.
QVC.com sales as a percentage of domestic sales grew from 23% in
the second quarter of 2007 to 25% in the second quarter of 2008.
The domestic adjusted OIBDA margin decreased 50 basis points
primarily due to the lower gross margin percentage as a result of
lower initial product margins in the home and apparel product areas
and higher freight and warehousing costs related to customer
shipments. QVC's international revenue increased 14% in the second
quarter to $580 million due to favorable foreign currency exchange
rates and subscriber growth in the U.K. and Japan. Excluding the
effect of exchange rates, international revenue increased in the UK
by 3% and Japan by 10% and 3% overall. International adjusted OIBDA
increased 11% in the second quarter from $91 million to $101
million. International adjusted OIBDA margins decreased 50 basis
points primarily due to lower gross margins as a result of lower
initial product margins and higher commissions expense as a
percentage of net revenue due to new fixed-rate agreements in the
U.K. and Japan. Excluding the effect of exchange rates, QVC's
international adjusted OIBDA increased 1% in the second quarter.
QVC U.K. revenue grew 3% in local currency in the second quarter.
The UK experienced a slowdown in promotional category sales and
softness in the home category. Units shipped increased 4% in the
second quarter while average selling price declined 1%. QVC Japan's
net revenue in local currency increased 10% for the second quarter,
the first double digit quarter sales increase since the fourth
quarter of 2006. Beginning in March 2007, QVC Japan faced a
heightened regulatory focus on health and beauty product
presentations. QVC Japan's results were favorably impacted as it
anniversaries the impact of this to the business and it has shown
productivity gains in the home, jewelry and fashion areas as it
continues to successfully shift product away from health and beauty
and into these categories. The German business experienced softness
in the jewelry and apparel product categories resulting in a 3%
decrease in net revenue in local currency for the second quarter.
QVC Germany's average selling price increased slightly in local
currency but units shipped decreased in the period by 2%. QVC
Germany experienced a lower gross margin percentage primarily due
to a higher inventory obsolescence provision. QVC's outstanding
bank debt was $4.49 billion at June 30, 2008. E-commerce Businesses
Liberty Interactive's e-commerce businesses, which include
Backcountry.com, Provide Commerce, Bodybuilding.com and BUYSEASONS,
had strong financial results in the second quarter and continue to
grow at a rapid pace. In the aggregate, the e-commerce businesses
experienced revenue and adjusted OIBDA growth of 97% and 108%,
respectively, primarily due to strong growth at Provide and the
previously mentioned acquisitions. Assuming the businesses were all
consolidated on January 1, 2007, revenue and adjusted OIBDA growth
of these businesses would have been 41% and 75%, respectively, for
the quarter. However, no assurance can be given that had the
companies been consolidated from January 1, 2007, the results would
not have been different. Share Repurchases There were no share
repurchases of Liberty Interactive stock during the second quarter
of 2008. Currently, Liberty has approximately $740 million
remaining under its Liberty Interactive stock repurchase
authorization. LIBERTY ENTERTAINMENT GROUP -- The businesses and
assets attributed to Liberty Entertainment group are engaged in, or
are ownership interests in companies that are engaged in,
television and internet distribution and programming, and currently
include Liberty's subsidiaries Starz Entertainment, LLC ("Starz
Entertainment"), FUN Technologies, Inc. ("FUN"), and the Liberty
Sports Group, its equity affiliates GSN LLC and WildBlue
Communications, Inc. and its interest in DIRECTV. Liberty has
identified Starz Entertainment, LLC, a consolidated, wholly-owned
subsidiary, as the principal operating segment of Liberty
Entertainment group. As previously noted, Liberty issued the
Liberty Entertainment group tracking stock on March 4, 2008. The
assets and businesses attributed to the Liberty Entertainment group
were previously attributed to the Capital group. The presentation
below treats the assets and businesses attributed to the Liberty
Entertainment group as though they had been attributed to the Group
since January 1, 2007. Liberty Entertainment group's revenue
increased 32% and adjusted OIBDA increased 13% for the quarter. The
increases are primarily due to growth at Starz Entertainment and
the addition of the Liberty Sports Group which was acquired in
February 2008. Liberty Entertainment group's results are comprised
of Starz Entertainment, FUN and the Liberty Sports Group. Starz
Entertainment, LLC Starz Entertainment revenue increased 8% to $275
million and adjusted OIBDA increased 24% to $68 million. The
increase in revenue was primarily due to higher effective rates for
Starz Entertainment's services and to a lesser extent, increases in
the weighted average number of subscription units. Starz and
Encore, the two principal service offerings of Starz Entertainment,
experienced average subscription unit increases of 6% and 11%,
respectively, during the quarter. The effects of these increases in
subscription units are somewhat mitigated by Starz Entertainment's
fixed-rate affiliation agreements. Starz Entertainment's operating
expenses increased 4% due to increased SG&A expenses associated
with a new Starz branding campaign. Programming expenses decreased
4% as a result of lower bonus payment amortization and a lower
percentage of first-run movie exhibitions as compared to the number
of library product exhibitions partially offset by a higher
effective rate for the movie titles exhibited in 2008. "Starz
posted another strong quarter of growth. The number of subscribers
to our channels continued to increase, and the Starz flagship
channel finished first in total day ratings among premium channels
in 10 of the first 26 weeks of the year," said Starz LLC Chairman
and CEO Robert B. Clasen. "In addition, we completed our first
affiliate deal for StarzPlay, our broadband movie service, with
Verizon Communications. LIBERTY CAPITAL GROUP -- The businesses and
assets attributed to Liberty Capital group are all of Liberty's
businesses and assets other than those attributed to the Liberty
Interactive group and Liberty Entertainment group and include its
subsidiaries Starz Media, LLC, TruePosition, Inc., Atlanta National
League Baseball Club, Inc. (the owner of the Atlanta Braves),
Leisure Arts, Inc., and WFRV and WJMN Television Station, Inc., and
its interests in Time Warner, Inc. and Sprint Nextel Corporation
Liberty Capital group's revenue increased to $174 million or 33%
while its adjusted OIBDA deficit increased to $40 million for the
quarter. The increase in revenue was primarily due to the
acquisition of the Atlanta Braves baseball club in May 2007. The
increase in the adjusted OIBDA deficit was due to marketing and
advertising costs associated with the release of several Overture
films at Starz Media. CEO Robert B. Clasen stated, "Overture Films'
movie The Visitor proved to be the sleeper indie hit of the year,
opening in April to critical acclaim and finishing among the top
box office performers among all films in the second quarter. Anchor
Bay Entertainment began the home entertainment distribution of
Overture's first movie Mad Money which has performed very
strongly." Share Repurchases During the second quarter and through
July 31, 2008, Liberty repurchased 18.1 million shares of Series A
Liberty Capital common stock at an average cost per share of $14.79
for total cash consideration of $267 million. These repurchases
represent 14% of the shares outstanding. 1. Please see page 10 of
this press release for the definition of adjusted OIBDA and a
discussion of management's use of this performance measure.
Schedule 1 to this press release provides a reconciliation of
Liberty's consolidated segment adjusted OIBDA for its operating
segments to consolidated earnings from continuing operations before
income taxes and minority interests. Schedule 2 to this press
release provides a reconciliation of adjusted OIBDA for each
privately held entity presented herein to that entity's operating
income for the same period, as determined under GAAP. NOTES Liberty
Media Corporation operates and owns interests in a broad range of
video and on-line commerce, media, communications and entertainment
businesses. Those interests are currently attributed to three
tracking stock groups: Liberty Interactive group, Liberty
Entertainment group and Liberty Capital group. As a supplement to
Liberty's consolidated statements of operations included in its
10-Q, the following is a presentation of financial information on a
stand-alone basis for QVC and Starz Entertainment which have been
identified as the principal operating segments of Liberty
Interactive and Liberty Entertainment, respectively. Unless
otherwise noted, the foregoing discussion compares financial
information for the three months ended June 30, 2008 to the same
periods in 2007. Please see page 10 of this press release for the
definition of adjusted OIBDA and a discussion of management's use
of this performance measure. Schedule 1 to this press release
provides a reconciliation of Liberty's consolidated segment
adjusted OIBDA for its operating segments to consolidated earnings
from continuing operations before income taxes and minority
interests. Schedule 2 to this press release provides a
reconciliation of the adjusted OIBDA for each privately held entity
presented herein to that entity's operating income for the same
period, as determined under GAAP. Certain prior period amounts have
been reclassified for comparability with the 2008 presentation.
Liberty completed the sale of its controlling interests in OpenTV
and On Command during 2007, and as such, the financial results of
these companies have been excluded from all periods presented. Fair
Value of Public Holdings and Derivatives March 31, June 30,
(amounts in millions and include the value of 2008 2008
derivatives) InterActiveCorp $1,728 1,605 Expedia (1) 1,515 1,272
GSI Commerce 121 130 Total Attributed Liberty Interactive Group
$3,364 3,007 DIRECTV (1) 11,662 14,073 Total Attributed Liberty
Entertainment Group $11,662 14,073 Non Strategic Public Holdings
(2) 4,565 4,716 Total Attributed Liberty Capital Group $4,565 4,716
(1) Represents fair value of Liberty's investments in Expedia and
DIRECTV. In accordance with GAAP, Liberty accounts for these
investments using the equity method of accounting and includes
these investments in its consolidated balance sheet at their
historical carrying values. (2) Represents Liberty's non-strategic
public holdings which are accounted for at fair value including any
associated equity derivatives on such investments. Also includes
the liability associated with borrowed shares which totaled $751
million and $682 million at March 31, 2008 and June 30, 2008,
respectively. Cash and Debt The following presentation is provided
to separately identify cash and liquid investments and debt
information. March 31, June 30, (amounts in millions) 2008 2008
Cash and Cash Related Investments: Total Attributed Liberty
Interactive Group Cash (GAAP) $646 731 Total Attributed Liberty
Entertainment Group Cash (GAAP) 981 1,029 Total Attributed Liberty
Capital Group Cash (GAAP) (1) 2,259 2,116 Total Liberty
Consolidated Cash (GAAP) $3,886 3,876 Debt: Senior Notes and
Debentures (2) $3,108 3,108 QVC Bank Credit Facility 4,489 4,486
Other 78 78 Less: Unamortized Discount (14) (15) Total Attributed
Liberty Interactive Group Debt (GAAP) 7,661 7,657 Senior
Exchangeable Debentures (3) 551 551 Liberty derivative borrowing -
1,993 Other 54 53 Total Attributed Liberty Entertainment Group Debt
605 2,597 Less: Fair Market Value Adjustment (166) (223) Total
Attributed Liberty Entertainment Group Debt (GAAP) 439 2,374 Senior
Exchangeable Debentures (3) 3,442 3,442 Bank Credit Facility 750
750 Other 673 713 Total Attributed Liberty Capital Group Debt 4,865
4,905 Less: Fair Market Value Adjustment (963) (957) Total
Attributed Liberty Capital Group Debt (GAAP) 3,902 3,948 Total
Consolidated Liberty Debt (GAAP) $12,002 13,979 (1) Does not
include $643 million and $542 million of restricted cash on March
31, 2008 and June 30, 2008, respectively, that is reflected in
other long-term assets in Liberty's condensed consolidated balance
sheet. Please see discussion related to Investment Fund in the
footnotes to Liberty's condensed consolidated financial statements
included in its most recently filed Form 10-Q. (2) Face amount of
Senior Notes and Debentures with no reduction for the unamortized
discount. (3) Face amount of Senior Exchangeable Debentures with no
reduction for the fair market value adjustment. Total attributed
Liberty Interactive group cash and liquid investments increased $85
million compared to March 31, 2008 primarily due to cash flow from
QVC operations partially offset by tax sharing payments to Liberty
Capital group and interest payments. Total attributed Liberty
Interactive group debt remained flat compared to March 31, 2008.
Total attributed Liberty Entertainment group cash and liquid
investments increased $48 million compared to March 31, 2008
primarily due to cash flow from Starz Entertainment operations.
Total attributed Liberty Entertainment group debt increased $1.992
billion compared to March 31, 2008 due to borrowings against the
equity collar on 110 million DIRECTV shares. Total attributed
Liberty Capital group cash and liquid investments decreased $143
million compared to March 31, 2008 due to the purchase of Liberty
Capital Series A common stock and cash taxes paid partially offset
by tax sharing payments received from Liberty Interactive group and
Liberty Entertainment group. Total attributed Liberty Capital group
debt increased $40 million compared to March 31, 2008 due to
increased subsidiary debt. Important Notice: Liberty Media
Corporation (NASDAQ:LINTANASDAQ:LINTBNASDAQ:LMDIANASDAQ:
LMDIBNASDAQ:LCAPANASDAQ:LCAPB) President and CEO, Gregory B. Maffei
will discuss Liberty's earnings release in a conference call which
will begin at 11:00 a.m. (ET) on August 11, 2008. The call can be
accessed by dialing (877) 719-9791 or (719) 325-4774 at least 10
minutes prior to the start time. Replays of the conference call can
be accessed from 1:00 p.m. (ET) on August 11, 2008 through 12:00
p.m. (ET) August 18, 2008, by dialing (719) 457-0820 or (888)
203-1112 plus the pass code 7804069#. The call will also be
broadcast live across the Internet and archived on our website. To
access the webcast go to
http://www.libertymedia.com/investor_relations/default.htm. Links
to this press release will also be available on the Liberty Media
web site. Certain statements in this press release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including the statements
regarding the long-term prospects of QVC and anticipated
programming costs for Starz Entertainment in 2008. These
forward-looking statements are based on management's current
expectations and assumptions, which are inherently subject to
uncertainties, risks and changes in circumstances that are
difficult to predict. Actual results, performance or achievements
of the operating businesses of Liberty included herein could differ
materially from those expressed or implied by such forward-looking
statements. Such risks, uncertainties and other factors include,
among others: the risks and factors described in the publicly filed
documents of Liberty, including the most recently filed Form 10-Q
of Liberty; general economic and business conditions and industry
trends including in the advertising and retail markets; the
continued strength of the industries in which such businesses
operate; continued consolidation of the broadband distribution and
movie studio industries; uncertainties inherent in proposed
business strategies and development plans; changes in distribution
and viewing of television programming, including the expanded
deployment of personal video recorders and IP television and their
impact on television advertising revenue and home shopping
networks; disruption in the production of theatrical films or
television programs due to strikes by unions representing writers,
directors or actors; increased digital television penetration and
the impact on channel positioning of our networks; rapid
technological changes; future financial performance, including
availability, terms and deployment of capital; availability of
qualified personnel; the development and provision of programming
for new television and telecommunications technologies; changes in,
or the failure or the inability to comply with, government
regulation, including, without limitation, regulations of the
Federal Communications Commission, and adverse outcomes from
regulatory proceedings; adverse outcomes in pending litigation;
changes in the nature of key strategic relationships with partners
and joint ventures; competitor responses to such operating
businesses' products and services, and the overall market
acceptance of such products and services, including acceptance of
the pricing of such products and services; and threatened terrorist
attacks and ongoing military action, including armed conflict in
the Middle East and other parts of the world. These forward-looking
statements speak only as of the date of this press release. Liberty
expressly disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward-looking statement contained
herein to reflect any change in Liberty's expectations with regard
thereto or any change in events, conditions or circumstances on
which any such statement is based. SUPPLEMENTAL INFORMATION As a
supplement to Liberty's consolidated statements of operations, the
following is a presentation of quarterly financial information and
operating metrics on a stand-alone basis for the two largest
privately held businesses (QVC and Starz Entertainment) owned by or
in which Liberty held an interest at June 30, 2008. Please see
below for the definition of adjusted OIBDA and Schedule 2 at the
end of this document for reconciliations for the applicable periods
in 2007 and 2008 of adjusted OIBDA to operating income, as
determined under GAAP, for each identified entity. QUARTERLY
SUMMARY (amounts in millions) 2Q07 3Q07 4Q07 1Q08 2Q08 Liberty
Interactive Group QVC (100%) Revenue - Domestic $1,184 1,174 1,676
1,176 1,181 Revenue - International 509 512 658 589 580 Revenue -
Total $1,693 1,686 2,334 1,765 1,761 Adjusted OIBDA - Domestic $292
278 396 281 286 Adjusted OIBDA - International 91 86 135 106 101
Adjusted OIBDA - Total $383 364 531 387 387 Operating Income $244
231 396 250 253 Gross Margin - Domestic 37.6% 36.6% 35.4% 36.4%
37.0% Gross Margin - International 37.5% 36.7% 37.3% 36.8% 37.3%
Liberty Entertainment Group STARZ ENTERTAINMENT (100%) Revenue $254
282 265 273 275 Adjusted OIBDA $55 88 48 74 68 Operating Income $42
78 30 60 53 Subscription Units - Starz 16.1 16.0 16.3 16.8 17.0
Subscription Units - Encore 28.4 30.3 30.7 31.4 31.3 NON-GAAP
FINANCIAL MEASURES This press release includes a presentation of
adjusted OIBDA, which is a non-GAAP financial measure, for each of
the privately held entities of Liberty included herein together
with a reconciliation of that non-GAAP measure to the privately
held entity's operating income, determined under GAAP. Liberty
defines adjusted OIBDA as revenue less cost of sales, operating
expenses, and selling, general and administrative expenses
(excluding stock and other equity-based compensation). Adjusted
OIBDA, as defined by Liberty, excludes depreciation and
amortization, stock and other equity-based compensation and
restructuring and impairment charges that are included in the
measurement of operating income pursuant to GAAP. Liberty believes
adjusted OIBDA is an important indicator of the operational
strength and performance of its businesses, including the ability
to service debt and fund capital expenditures. In addition, this
measure allows management to view operating results and perform
analytical comparisons and benchmarking between businesses and
identify strategies to improve performance. Because adjusted OIBDA
is used as a measure of operating performance, Liberty views
operating income as the most directly comparable GAAP measure.
Adjusted OIBDA is not meant to replace or supercede operating
income or any other GAAP measure, but rather to supplement such
GAAP measures in order to present investors with the same
information that Liberty's management considers in assessing the
results of operations and performance of its assets. Please see the
attached schedules for a reconciliation of consolidated segment
adjusted OIBDA to consolidated earnings from continuing operations
before income taxes and minority interest (Schedule 1) and a
reconciliation, for QVC and Starz Entertainment, of each identified
entity's adjusted OIBDA to its operating income calculated in
accordance with GAAP (Schedule 2). SCHEDULE 1 The following table
provides a reconciliation of consolidated segment adjusted OIBDA to
earnings from continuing operations before income taxes and
minority interest for the three months ended June 30, 2007 and
2008, respectively. (amounts in millions) 2007 2008 Liberty
Interactive Group $393 410 Liberty Entertainment Group 55 62
Liberty Capital Group (31) (40) Consolidated segment adjusted OIBDA
$417 432 Consolidated segment adjusted OIBDA $417 432 Stock
compensation (18) (27) Depreciation and amortization (172) (176)
Interest expense (145) (187) Realized and unrealized gains (losses)
on financial instruments, net (251) (37) Gains (losses) on
disposition of assets, net 629 (1) Other, net 85 206 Earnings from
continuing operations before income taxes and minority interest
$545 210 SCHEDULE 2 The following table provides a reconciliation
for QVC and Starz Entertainment of adjusted OIBDA to operating
income calculated in accordance with GAAP for the three months
ended June 30, 2007, September 30, 2007, December 31, 2007, March
31, 2008 and June 30, 2008, respectively. (amounts in millions)
2Q07 3Q07 4Q07 1Q08 2Q08 Liberty Interactive Group QVC (100%)
Adjusted OIBDA $383 364 531 387 387 Depreciation and Amortization
(134) (129) (133) (132) (129) Stock Compensation Expense (5) (4)
(2) (5) (5) Operating Income $244 231 396 250 253 Liberty
Entertainment Group STARZ ENTERTAINMENT (100%) Adjusted OIBDA $55
88 48 74 68 Depreciation and Amortization (6) (3) (6) (4) (5) Stock
Compensation Expense (7) (7) (12) (10) (10) Operating Income $42 78
30 60 53 DATASOURCE: Liberty Media Corporation CONTACT: Courtnee
Ulrich of Liberty Media Corporation, +1-720-875-5420 Web site:
http://www.libertymedia.com/
Copyright
Liberty Media Corp. - Liberty Cap Class A Common Stock (MM) (NASDAQ:LCAPA)
과거 데이터 주식 차트
부터 9월(9) 2024 으로 10월(10) 2024
Liberty Media Corp. - Liberty Cap Class A Common Stock (MM) (NASDAQ:LCAPA)
과거 데이터 주식 차트
부터 10월(10) 2023 으로 10월(10) 2024