Liberty Media Corporation (“Liberty”) (Nasdaq: LCAPA, LCAPB,
LINTA, LINTB, LSTZA, LSTZB) today reported fourth quarter and year
end results for Liberty Capital group, Liberty Interactive group
and Liberty Starz group. Highlights include(1):
- Achieved Q4 revenue and adjusted
OIBDA(2) growth at QVC of 4% and 1%, respectively
- Operating income grew 1% for the
quarter and 11% for the year
- Excluding the effects of the new
agreement with GE Money Bank and Italy launch, adjusted OIBDA grew
5% for the fourth quarter and 10% for the year
- QVC Japan exceeded $1 billion in annual
revenue, the first market outside of the US to achieve this
milestone
- QVC paid down $300 million of the bank
credit facility during the fourth quarter
- Attained record viewership for
Spartacus: Gods of the Arena, the most watched premium series this
winter
- Repurchased $185 million of Liberty
Capital stock, from October 30, 2010 through January 31, 2011
- Liberty has repurchased 39% of shares
outstanding since reclassification in March 2008
- Changed the attribution of the 3.125%
exchangeable debentures due 2023, the equity securities underlying
the exchangeable and $264 million of cash from Liberty Capital to
Liberty Interactive
- Filed an amended proxy statement with
the SEC for the split-off of Liberty Capital and Liberty Starz, and
set a shareholder vote for April
- Purchased additional 1.8 million shares
of Live Nation in February, and plan to purchase an additional 5.5
million shares subject to Live Nation shareholder approval,
increasing ownership to 21%
“QVC had a solid finish to the year, with particular strength in
the established international markets,” stated Greg Maffei, Liberty
President and CEO. “Starz results exceeded revenue and met adjusted
OIBDA guidance and we are thrilled that our first movie as part of
our home video distribution agreement with The Weinstein Company,
The King’s Speech, won best picture last night at the Oscars®. In
February we changed the attribution of the 3.125% exchangeable debt
from Liberty Capital to Liberty Interactive and continue to make
progress on the split-off with a shareholder vote set for
April.”
LIBERTY INTERACTIVE GROUP – Liberty Interactive group’s
revenue increased 6% to $2.9 billion in the fourth quarter and 8%
to $8.9 billion for the year. Adjusted OIBDA increased 1% to $564
million for the fourth quarter and 6% to $1.7 billion for the year,
while operating income was flat for the fourth quarter and
increased 6% for the year. The increase in revenue, adjusted OIBDA,
and operating income for the year was primarily due to favorable
results at QVC.
QVC
QVC’s consolidated revenue increased 4% in the fourth quarter to
$2.5 billion and 6% to $7.8 billion for the year. Adjusted OIBDA
increased 1% to $533 million in the fourth quarter and 7% to $1.7
billion for the year. Operating income increased 1% to $393 million
in the fourth quarter and 11% to $1.1 billion for the year.
Excluding the negative effects of the new agreement with GE Money
Bank and the Italy launch, adjusted OIBDA increased 5% in the
fourth quarter and 10% for the year.
“Our fourth quarter results continued the positive trend with
our consolidated adjusted OIBDA margin, excluding our start up
operations related to Italy and the negative impact of our new
agreement with GE Money Bank, improving 24 basis points over a
particularly strong fourth quarter in 2009,” stated Mike George,
QVC President and CEO. “For 2010, we had some of the most balanced
results across markets that we have seen in many years. Every
established market increased revenue growth and adjusted OIBDA
margins, achieved strong eCommerce growth and enjoyed growth in the
count of new customers. We made continued progress in broadening
the appeal and accessibility of our brand across both markets and
platforms. Among the highlights of our achievements this year, we
launched a number of exciting new platforms - from mobile
applications to second channels and simulcasts; we continued to
elevate our products and brands and engaged our viewers with
compelling programming including big events like Fashion’s Night
Out; and with Italy, we launched our first new market in a
decade.”
QVC’s US revenue increased 3% in the fourth quarter to $1.7
billion and 5% to $5.2 billion for the year. Sales of electronics,
beauty and accessories increased while jewelry sales declined. The
average selling price for the fourth quarter increased 11% from
$50.37 to $56.00 while total units sold decreased 6% to 33.2
million. For the year, the average selling price increased 4% from
$49.01 to $51.19 and units sold increased 2% to 110.6 million.
Returns as a percent of gross product revenue increased from 16.4%
to 16.8% for the quarter and increased from 17.6% to 18.0% for the
year. QVC.com sales as a percentage of US sales grew from 31% in
the fourth quarter of 2009 to 36% in the fourth quarter of 2010 and
grew from 29% to 33% for the year. QVC US adjusted OIBDA decreased
1% for the fourth quarter and increased 8% for the year. Overall,
the US adjusted OIBDA results were negatively impacted by $9
million for the quarter and $14 million for the year due to the
change in terms of QVC’s arrangement with GE Money Bank for its
QCard that was effective in August 2010, as previously disclosed.
Excluding the negative impact of this arrangement, the US adjusted
OIBDA increased 1% and 9% for the fourth quarter and year ended
December 31, 2010, respectively. The US adjusted OIBDA margin
decreased 83 basis points to 21% for the quarter primarily due to
the previously disclosed change in the agreement with GE Money Bank
and a slight decrease in initial margins due to a growth in
electronics. The US adjusted OIBDA margin increased 46 basis points
for the year due primarily to increased gross margins resulting
from a lower inventory obsolescence provision and lower freight
expense. QVC US operating income decreased 2% to $261 million for
the fourth quarter and increased 12% to $782 million for the
year.
QVC’s international revenue increased 7% in the fourth quarter
to $802 million and 8% for the year to $2.6 billion including the
impact of unfavorable exchange rates in the UK, Germany and Italy
and favorable exchange rates in Japan. International adjusted OIBDA
increased 6% to $169 million for the quarter and 7% to $482 million
for the year. Included in QVC’s international results is $14
million of adjusted OIBDA loss for the quarter and $32 million of
adjusted OIBDA loss for the year related to QVC Italy operations
that launched as planned in October 2010. Excluding the effects of
Italy, international adjusted OIBDA increased 14% for the quarter
and 13% for the year and adjusted OIBDA margins increased 144 basis
points and 90 basis points for the quarter and the year,
respectively. Excluding the effect of exchange rates and start-up
costs for Italy, QVC’s international revenue increased 8% for both
the quarter and year and adjusted OIBDA increased 15% for the
quarter and 12% for the year. QVC international operating income
increased 7% to $132 million for the quarter and 11% to $348
million for the year.
QVC UK’s revenue grew 6% and 5% in local currency for the
quarter and the year, respectively, through increased sales in
apparel, beauty and accessories. The UK’s average selling price in
local currency was relatively flat for the quarter and decreased 2%
for the year and units sold increased 8% for both the fourth
quarter and the year. QVC UK’s adjusted OIBDA margin increased 156
basis points for the quarter and 72 basis points for the year due
primarily to warehouse and freight savings as well as gaining
leverage on fixed costs and lower personnel expenses.
QVC Germany’s revenue grew 9% and 7% in local currency for the
quarter and the year, respectively, through increased sales in
home, accessories and beauty. QVC Germany’s average selling price
in local currency decreased 4% and 1% for the quarter and year,
respectively, while units sold increased 15% and 9%, respectively,
for the quarter and the year. QVC Germany experienced an increase
of 195 basis points and 67 basis points in adjusted OIBDA margin
percentage for the quarter and the year, respectively, due
primarily to increased product margins due to a shift from
electronics to fashion product areas.
QVC Japan’s revenue grew 7% and 10% in local currency for the
quarter and the year, respectively, through increased sales in
apparel and beauty. QVC Japan achieved growth of 13% and 17% in
units sold for the quarter and the year, respectively with the
average selling price in local currency declining 6% in both the
quarter and the year. For the full year, QVC Japan exceeded $1
billion in revenue, the first market outside the US to achieve that
milestone. QVC Japan’s adjusted OIBDA margin increased 77 basis
points for the quarter and 96 basis points for the year primarily
as a result of reductions in cable operator commission expense due
to favorable renegotiated contract terms as well as attaining
leverage on fixed costs due to the increase in revenue.
QVC’s outstanding bank and bond debt was $2.8 billion and QVC
had $1.2 billion available under its bank credit facility at
December 31, 2010.
eCommerce Businesses
In the aggregate, the eCommerce businesses grew revenue 27% to
$365 million for fourth quarter and 18% to $1.1 billion for the
year. Adjusted OIBDA increased 38% to $47 million for the fourth
quarter and decreased 8% to $103 million for the year, while
operating income increased 65% or $11 million for the quarter and
decreased 26% or $14 million for the year. Overall revenue growth
was partially offset by lower commission revenue earned for
referring customers to third-party on-line discount services. In
the first quarter of 2010, a decision was made to change the way
these promotions are offered which reduced the revenue earned in
2010 by $25 million. Revenue earned from commissions yielded
significantly higher margins than product sales and therefore the
reduction in this revenue more negatively impacted adjusted OIBDA
on a percentage basis. Furthermore, during the year increased
marketing spend grew revenue and new customer names but negatively
impacted adjusted OIBDA margins. During the fourth quarter growth
in revenue and adjusted OIBDA was driven by product revenue growth
and improved gross margins, offset by a $5 million reduction in
commission revenue as previously discussed.
Share Repurchases
There were no repurchases of Liberty Interactive stock from
October 30, 2010 through January 31, 2011. Liberty has
approximately $740 million remaining under its Liberty Interactive
stock repurchase authorization.
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,
Bodybuilding.com, Celebrate Interactive, CommerceHub, and The Right
Start, and its interests in HSN, Tree.com, Interval Leisure Group,
Expedia and Lockerz. Liberty has identified wholly-owned QVC as the
principal operating segment of the Liberty Interactive group.
LIBERTY STARZ GROUP – Results for the Liberty Starz group
include twelve months of legacy Starz Entertainment business
operations and three months of Starz Media operations due to the
change in attribution of Starz Media from Liberty Capital to
Liberty Starz effective as of September 30, 2010.
Liberty Starz group’s revenue increased 33% to $405 million for
the fourth quarter and 11% to $1.3 billion for the year. The
increase in revenue was primarily due to the addition of the Starz
Media business in the fourth quarter combined with increases in the
average number of subscriptions for the Starz Channels’ networks
and rate increases and ancillary revenues related to original
programming, primarily Spartacus: Blood and Sand. Liberty Starz
group’s adjusted OIBDA increased 43% to $106 million in the fourth
quarter and 7% to $401 million for the year. The increase in
adjusted OIBDA was due to increases in the average number of
subscriptions to our channels, associated increases in subscription
rates, ancillary revenue from our original programming, partially
offset by higher programming expenses related to increased airings
of original programming in 2010 and the addition of the Starz Media
business in the fourth quarter. Operating income increased 27% to
$62 million for the quarter and 20% to $327 million for the
year.
Starz LLC’s revenue increased 33% to $400 million for the
quarter and 11% to $1.3 billion for the year. Adjusted OIBDA
increased 41% to $110 million for the quarter and 8% to $415
million for the year. The increases in revenue and adjusted OIBDA
for the quarter and the year were primarily due to the change in
attribution of Starz Media from Liberty Capital to Liberty Starz in
the fourth quarter. Starz’ subscription units increased 8% and
Encore subscriptions increased 7% vs. the fourth quarter 2009.
Excluding the effects of Starz Media and corporate and other,
revenue for the legacy Starz Entertainment business increased 6%
for the quarter and 5% for the year and adjusted OIBDA increased
31% for the quarter and 6% for the year.
“Starz Entertainment posted another year of strong results in
2010, with highs achieved in revenue, adjusted OIBDA, and year-end
subscriptions for both the Starz and Encore flagship channels,”
said Chris Albrecht, Starz, LLC, President and CEO. “We are excited
for 2011, our first year with a full slate of original programming.
The Spartacus: Gods of the Arena prequel showed the continued
vitality of the franchise, with even stronger viewership than
Spartacus: Blood and Sand achieved last year. We were also very
pleased with the multi-year, multi-platform distribution agreement
announced last month with The Weinstein Group. This deal leverages
the sales and distribution infrastructure already in place with
Anchor Bay Entertainment.”
Share Repurchases
There were no repurchases of Liberty Starz stock from October
30, 2010 through January 31, 2011. Liberty has approximately $447
million remaining under its Liberty Starz stock repurchase
authorization.
The businesses and assets attributed to Liberty Starz group are
primarily engaged in the production and distribution of video
programming and related businesses. Liberty has identified Starz,
LLC as the principal operating segment of the Liberty Starz group.
Starz, LLC is managed based on the business units of the Starz
Channels, the legacy Starz Entertainment business, and the home
video, television, digital media and theatrical businesses, the
legacy Starz Media business.
LIBERTY CAPITAL GROUP – Liberty Capital group’s revenue
decreased 41% to $91 million in the fourth quarter and increased 9%
to $708 million for the year. The revenue decrease for the quarter
was primarily due to the change in attribution of Starz Media from
Liberty Capital to Liberty Starz. Adjusted OIBDA losses decreased
by $76 million for the fourth quarter and $98 million for the year.
The increase in revenue and decrease in adjusted OIBDA losses for
the year were primarily due to TruePosition’s delivery of the final
specified upgrade under their AT&T contract. As a result,
TruePosition was able to resume the amortization of previously
deferred revenue and deferred costs under that contract. Operating
income increased to $24 million for the fourth quarter and
operating losses improved by 50% or $131 million for the year.
Share Repurchases
From October 30, 2010 through January 31, 2011, Liberty
repurchased 3.0 million shares of Series A Liberty Capital common
stock at an average cost per share of $60.76 for total cash
consideration of $185.1 million. Since the reclassification of
Liberty Capital on March 4, 2008 through January 31, 2011, Liberty
has repurchased 50.4 million shares at an average cost per share of
$24.91 for total cash consideration of $1.3 billion. These
repurchases represent 39.0% of the shares outstanding. Liberty has
approximately $341.7 million remaining under its Liberty Capital
stock repurchase authorization.
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 Starz group
and include its subsidiaries Starz Media (through September 30,
2010), TruePosition, Atlanta National League Baseball Club (the
owner of the Atlanta Braves), its interests in SIRIUS XM, and
minority interests in Live Nation, Time Warner, and Viacom.
FOOTNOTES
1)
Liberty’s President and CEO, Gregory B.
Maffei, will discuss these highlights and other matters in
Liberty’s earnings conference call which will begin at 12:00 p.m.
(ET) on February 28, 2011. For information regarding how to access
the call, please see “Important Notice.”
2) For a definition of adjusted OIBDA and applicable
reconciliations and a definition of adjusted OIBDA margin, see the
accompanying schedules.
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
Starz group and Liberty Capital group.
Unless otherwise noted, the foregoing discussion compares
financial information for the three and 12 months ended December
31, 2010 to the same period in 2009. Certain prior period amounts
have been reclassified for comparability with the 2010
presentation. During the fourth quarter of 2009, Liberty completed
the split-off of Liberty Entertainment Inc. (LEI), and as such, the
financial results of the businesses and assets of LEI have been
excluded from all periods presented.
On September 16, 2010, Liberty Media’s board of directors
approved a change in attribution of Liberty Media’s interest in
Starz Media from its Capital group to its Starz group, effective
September 30, 2010. Liberty reflected this attribution
prospectively therefore the operating results of Starz Media for
the nine months ended September 30, 2010 continue to be reflected
in Liberty Capital. Liberty Starz group’s results include Starz
Entertainment for the full year 2010 and Starz Media for the fourth
quarter following the change in attribution.
The following financial information is intended to supplement
Liberty’s consolidated statements of operations to be included in
its Form 10-K.
Fair Value of Public Holdings and
Derivatives
(amounts in millions and include the value
of derivatives)
September 30,2010
December 31,2010
Expedia(1) 1,954 1,737 HSN(1) 553 568 InterActiveCorp
336 -- Interval Leisure Group and Tree.com(1) 243 294
Total
Attributed Liberty Interactive Group 3,086 2,599
Other(2) 1 --
Total Attributed Liberty Starz Group
1 -- SIRIUS XM debt and equity(3) 3,533 4,650 Live
Nation debt and equity 270 389 Non-strategic public holdings(4)
2,344 2,482
Total Attributed Liberty Capital Group
6,147 7,521 (1) Represents fair value
of Liberty’s investments. 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) Excludes $67 million of
marketable securities with an original maturity greater than one
year which are included in cash and liquid investments on the
following schedule as of December 31, 2010. (3) Represents the fair
value of Liberty’s various debt and equity investments in SIRIUS
XM. The fair value of Liberty’s convertible preferred stock is
calculated on an as-if-converted basis into common stock. In
accordance with GAAP, Liberty accounts for the convertible
preferred stock using the equity method of accounting and includes
this in its consolidated balance sheet at historical carrying
value. (4) 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 $1,148 million and
$1,219 million on September 30, 2010 and December 31, 2010,
respectively.
Cash and Debt
The following presentation is provided to separately identify
cash and liquid investments and debt information.
(amounts in millions)
September 30,2010
December 31,2010
Cash and Liquid Investments Attributable to: Liberty
Interactive group 935 1,089 Liberty Starz group(1) (2) 1,164 1,120
Liberty Capital group(3) (4) 1,894 1,546
Total
Liberty Consolidated Cash and Liquid Investments 3,993
3,755 Less: Short-term
marketable securities – Liberty Starz group 149 175 Long-term
marketable securities – Liberty Starz group -- 67 Short-term
marketable securities – Liberty Capital group 313 334
Total Liberty Consolidated Cash (GAAP) 3,531
3,179 Debt: Senior notes and
debentures(5) 1,115 1,115 Senior exchangeable debentures(6) 1,960
1,960 QVC senior notes(5) 2,000 2,000 QVC bank credit facility
1,080 785 Other 77 79
Total Attributed Liberty
Interactive Group Debt 6,232 5,939 Unamortized
discount (23 ) (22 ) Fair market value adjustment (794 ) (737 )
Total Attributed Liberty Interactive Group Debt (GAAP)
5,415 5,180 Other 99 105
Total Attributed Liberty Starz Group Debt (GAAP)
99 105 Senior exchangeable
debentures(6) 1,138 1,138 Bank investment facility 750 750 Other --
--
Total Attributed Liberty Capital Group Debt
1,888 1,888 Fair market value adjustment 117
145
Total Attributed Liberty Capital Group Debt
(GAAP) 2,005 2,033
Total Consolidated Liberty Debt (GAAP) 7,519
7,318 (1) Includes $149 million and $175
million of short-term marketable securities with an original
maturity greater than 90 days as of September 30, 2010 and December
31, 2010, respectively. (2) Includes $67 million of marketable
securities with an original maturity greater than one year as of
December 31, 2010, which is reflected in investments in
available-for-sale securities in Liberty’s condensed consolidated
balance sheet. (3) Includes $313 million and $334 million of
short-term marketable securities with an original maturity greater
than 90 days as of September 30, 2010 and December 31, 2010,
respectively. (4) Excludes $476 million and $503 million of
restricted cash on September 30, 2010 and December 31, 2010,
respectively, associated with the bank investment facility which is
reflected in other long-term assets in Liberty’s condensed
consolidated balance sheet. (5) Face amount of Senior Notes and
Debentures with no reduction for the unamortized discount or fair
market value adjustment. (6) Face amount of Senior Exchangeable
Debentures with no reduction for the fair market value adjustment.
Total attributed Liberty Interactive group cash increased $154
million, primarily due to $218 million acquired in the IAC exchange
and from cash flow from operations at QVC. These cash inflows were
partially offset by $300 million in repayments on the QVC Bank
Credit Facility. Total attributed Interactive group debt decreased
as a result of these repayments offset by $5 million of foreign
currency exchange.
Total attributed Liberty Starz group cash decreased $44 million,
primarily as a result of the payout of stock compensation held by
the founder and former CEO of Starz Entertainment. These payments
were partially offset by cash flow from operations at Starz LLC.
Total attributed Starz group debt increased $6 million.
Total attributed Liberty Capital group cash decreased $348
million, primarily due to $127 million of LCAPA stock repurchases
and $252 million of taxes paid in the fourth quarter. There was no
change in total attributed Capital group debt during the fourth
quarter.
Important Notice: Liberty Media Corporation (Nasdaq:
LCAPA, LCAPB, LINTA, LINTB, LSTZA, LSTZB) President and CEO,
Gregory B. Maffei will discuss Liberty’s earnings release in a
conference call which will begin at 12:00 p.m. (ET) on February 28,
2011. The call can be accessed by dialing (877) 856-1956 or (719)
325-4766 at least 10 minutes prior to the start time. Replays of
the conference call can be accessed until 8:00 p.m. (ET) March 7,
2011, by dialing (888) 203-1112 or (719) 457-0820 plus the pass
code 7704326#. 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/events. Links to this press release
will also be available on the Liberty Media website.
This press release includes certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements about business strategies, market
potential, future financial prospects, international expansion, new
service and product launches, the proposed split-off of our Liberty
Capital and Liberty Starz tracking stock groups and other matters
that are not historical facts. These forward-looking statements
involve many risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by
such statements, including, without limitation, possible changes in
market acceptance of new products or services, competitive issues,
regulatory matters affecting our businesses, continued access to
capital on terms acceptable to Liberty Media, changes in law and
government regulations that may impact the derivative instruments
that hedge certain of our financial risks and the satisfaction of
the conditions to the proposed split-off. These forward-looking
statements speak only as of the date of this press release, and
Liberty Media 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 Media’s
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
Please refer to the publicly filed documents of Liberty Media,
including the most recent Form 10-K, for additional information
about the risks and uncertainties related to Liberty Media’s
business which may affect the statements made in this press
release.
Additional Information
Nothing in this press release shall constitute a solicitation to
buy or an offer to sell shares of the split-off entity or any of
Liberty's tracking stocks. The offer and sale of shares in the
proposed split-off will only be made pursuant to an effective
registration statement. Liberty stockholders and other investors
are urged to read the definitive registration statement to be filed
with the SEC, including the proxy statement/prospectus to be
contained therein (preliminary filings of which have been made with
the SEC), because they will contain important information about the
split-off. Copies of Liberty's SEC filings are available free of
charge at the SEC’s website (http://www.sec.gov). Copies of the
filings together with the materials incorporated by reference
therein will also be available, without charge, by directing a
request to Liberty Media Corporation, 12300 Liberty Boulevard,
Englewood, Colorado 80112, Attention: Investor Relations,
Telephone: (720) 875-5408.
Participants in a Solicitation
The directors and executive officers of Liberty and other
persons may be deemed to be participants in the solicitation of
proxies in respect of proposals to approve the split-off.
Information regarding the directors and executive officers of each
of Liberty and the split-off entity and other participants in the
proxy solicitation and a description of their respective direct and
indirect interests, by security holdings or otherwise, will be
available in the definitive proxy materials filed with the SEC
(preliminary filing of which have been made with the SEC).
SUPPLEMENTAL INFORMATION
As a supplement to Liberty’s consolidated statements of
operations, to be included in its Form 10-K, the following is a
presentation of quarterly and annual financial information and
operating metrics on a stand-alone basis for the two largest
privately held businesses (QVC and Starz, LLC) owned by Liberty at
December 31, 2010.
Results for the Liberty Starz group include twelve months of
legacy Starz Entertainment business operations and three months of
Starz Media operations due to the change in attribution of Starz
Media from Liberty Capital to Liberty Starz effective as of
September 30, 2010.
Please see below for the definition of adjusted OIBDA and a
discussion of why management believes the presentation of adjusted
OIBDA provides useful information for investors. Schedule 2 to this
press release provides a reconciliation of adjusted OIBDA for each
identified entity to that entity’s operating income for the same
period, as determined under GAAP.
QUARTERLY SUMMARY
(amounts in millions) 4Q09 1Q10 2Q10
3Q10 4Q10
Liberty Interactive Group QVC
Revenue – US 1,672 1,156 1,193 1,167 1,719 Revenue – International
751 601 565 604 802 Revenue –
Total 2,423 1,757 1,758 1,771 2,521
Adjusted OIBDA – US 368 261 303 261 364 Adjusted OIBDA –
International 159 105 100 108 169
Adjusted OIBDA – Total 527 366 403 369
533 Operating income – US 265 161 201 159 261
Operating income – International 123 71 69 76
132 Operating income – Total 388 232
270 235 393 Gross margin – US 33.5 % 35.6 %
37.3 % 35.9 % 33.1 % Gross margin – International 37.3 % 36.6 %
36.9 % 37.4 % 37.7 %
Liberty Starz Group Starz
LLC(1) Revenue 300 305 308 316 400 Adjusted OIBDA 78 106
107 92 110 Operating income 65 99 102 87 70 Subscription units –
Starz 16.9 17.1 17.3 17.4 18.2 Subscription units – Encore 30.6
31.1 31.9 32.0 32.8 (1)
Includes Starz Entertainment for full year 2010 and Starz Media for
Q4 2010 after the change in attribution of Starz Media from Liberty
Capital to Liberty Starz.
ANNUAL SUMMARY
(amounts in millions) 2009 2010
Liberty Interactive Group QVC Revenue – US 4,965
5,235 Revenue – International 2,387 2,572 Revenue –
Total 7,352 7,807 Adjusted OIBDA – US 1,105 1,189
Adjusted OIBDA – International 451 482 Adjusted OIBDA
– Total 1,556 1,671 Operating income – US 701 782
Operating income – International 313 348 Operating
income – Total 1,014 1,130 Gross Margin – US 34.6 %
35.2 % Gross Margin – International 37.2 % 37.2 %
Liberty
Starz Group Starz, LLC(1) Revenue 1,193 1,329
Adjusted OIBDA 384 415 Operating Income 330 358 Subscription units
– Starz 16.9 18.2 Subscription units – Encore 30.6 32.8
(1) Includes Starz Entertainment for full year 2010
and Starz Media for Q4 2010 after the change in attribution of
Starz Media from Liberty Capital to Liberty Starz.
NON-GAAP FINANCIAL MEASURES
This press release includes a presentation of adjusted OIBDA,
which is a non-GAAP financial measure, for each of Liberty’s
tracking stock groups and each of QVC (and certain of its
subsidiaries), the eCommerce businesses, and Starz, LLC, together
with a reconciliation to that group’s or entity’s operating income,
as 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) and excludes from that definition depreciation and
amortization, restructuring and impairment charges and gains on
legal settlements that are included in the measurement of operating
income pursuant to GAAP. Further, this press release includes
adjusted OIBDA margin which is also a non-GAAP financial measure.
Liberty defines adjusted OIBDA margin as adjusted OIBDA divided by
revenue.
Liberty believes adjusted OIBDA is an important indicator of the
operational strength and performance of its businesses, including
each business’ 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 supersede 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 applicable
reconciliations.
SCHEDULE 1
The following table provides a reconciliation of adjusted OIBDA
for each of Liberty Interactive group, Liberty Starz group, and
Liberty Capital group to that group’s operating income calculated
in accordance with GAAP for the three months ended December 31,
2009, March 31, 2010, June 30, 2010, September 30, 2010 and
December 31, 2010, respectively.
QUARTERLY SUMMARY
(amounts in millions) 4Q09 1Q10 2Q10
3Q10 4Q10
Liberty Interactive Group Adjusted OIBDA
556 381 428 373 564 Depreciation and amortization (145 ) (141 )
(139 ) (141 ) (150 ) Stock compensation expense (14 ) (22 ) (15 )
(12 ) (18 )
Operating Income 397 218
274 220 396
Liberty Starz Group Adjusted OIBDA 74 103 103 89 106
Depreciation and amortization (4 ) (5 ) (4 ) (7 ) (2 ) Stock
compensation expense (16 ) (6 ) (3 ) (5 ) (38 ) Impairment of
long-lived assets (5 ) -- -- -- (4 )
Operating Income 49 92 96
77 62 Liberty Capital
Group Adjusted OIBDA (76 ) (43 ) (59 ) 25
--
Depreciation and amortization (17 ) (16 ) (21 ) (20 ) (15 ) Stock
compensation expense -- (11 ) (3 ) (8 ) (9 ) Impairment of
long-lived assets (4 ) -- -- -- -- Gain on legal settlement --
-- -- -- 48
Operating Income
(Loss) (97 ) (70 ) (83
) (3 ) 24
ANNUAL SUMMARY
(amounts in millions) 2009 2010
Liberty Interactive Group Adjusted OIBDA 1,654 1,746
Depreciation and amortization (566 ) (571 ) Stock compensation
expense (47 ) (67 )
Operating Income 1,041
1,108 Liberty Starz Group Adjusted
OIBDA 374 401 Depreciation and amortization (21 ) (18 ) Stock
compensation expense (76 ) (52 ) Impairment of Long-Lived Assets (5
) (4 )
Operating Income 272 327
Liberty Capital Group Adjusted OIBDA (175 ) (77 )
Depreciation and amortization (79 ) (72 ) Stock compensation
expense (5 ) (31 ) Impairment of long-lived Assets (4 ) -- Gain on
legal settlement -- 48
Operating Loss
(263 ) (132 )
The following table provides a reconciliation of adjusted OIBDA
to earnings from continuing operations before income taxes for the
years ended December 31, 2009 and 2010, respectively.
(amounts in millions) 2009 2010
Liberty Interactive group $ 1,654 $ 1,746 Liberty Starz group 374
401 Liberty Capital group (175 ) (77 )
Consolidated Adjusted OIBDA $ 1,853
$ 2,070 Consolidated segment adjusted
OIBDA $ 1,853 $ 2,070 Stock-based compensation (128 ) (150 )
Depreciation and amortization (666 ) (661 ) Legal settlement -- 48
Impairment of long-lived assets (9 ) (4 ) Interest expense (628 )
(647 ) Share of earnings (losses) of affiliates, net (58 ) 50
Realized and unrealized gains (losses) on financial instruments,
net (155 ) 232 Gains on dispositions, net 284 569 Other than
temporary declines in the fair value of investments (9 ) -- Other,
net 137 51
Earnings from Continuing
Operations Before Income Taxes $ 621
$ 1,558
SCHEDULE 2
The following table provides a reconciliation of adjusted OIBDA
for QVC (and certain of its subsidiaries), the eCommerce businesses
and Starz, LLC to that entity or group’s operating income (loss)
calculated in accordance with GAAP for the three months ended
December 31, 2009, March 31, 2010, June 30, 2010, September 30,
2010 and December 31, 2010, respectively.
QUARTERLY SUMMARY
(amounts in millions) 4Q09 1Q10 2Q10
3Q10 4Q10
Liberty
Interactive Group
QVC QVC US adjusted OIBDA 368 261 303
261 364 QVC UK adjusted OIBDA 39 19 22 25 43 QVC
Germany adjusted OIBDA 65 42 30 38 71 QVC Japan adjusted OIBDA 57
48 53 54 69 QVC Italy adjusted OIBDA (2 ) (4 ) (5 ) (9 ) (14 ) QVC
International adjusted OIBDA 159 105 100 108
169 Total QVC adjusted OIBDA 527 366 403 369
533 Depreciation and amortization (134 ) (129 ) (129 ) (129 ) (136
) Stock compensation expense (5 ) (5 ) (4 ) (5 ) (4 )
Operating
Income 388 232 270
235 393 eCommerce
Businesses Adjusted OIBDA 34 18 28 10 47 Depreciation and
amortization (11 ) (10 ) (11 ) (12 ) (15 ) Stock compensation
expense (6 ) (4 ) (9 ) 2 (4 )
Operating Income
17 4 8 --
28
Liberty Starz
Group
Starz, LLC(1) Adjusted OIBDA 78 106 107 92 110
Depreciation and amortization (4 ) (4 ) (4 ) (3 ) (5 ) Stock
compensation expense (9 ) (3 ) (1 ) (2 ) (35 )
Operating
Income 65 99 102
87 70 (1) Includes Starz
Entertainment for full year 2010 and Starz Media for Q4 2010 after
the change in attribution of Starz Media from Liberty Capital to
Liberty Starz.
ANNUAL SUMMARY
(amounts in millions) 2009 2010
Liberty
Interactive Group
QVC QVC US adjusted OIBDA 1,105 1,189 QVC UK
adjusted OIBDA 101 109 QVC Germany adjusted OIBDA 172 181 QVC Japan
adjusted OIBDA 183 224 QVC Italy adjusted OIBDA (5 ) (32 ) QVC
International adjusted OIBDA 451 482 Total QVC
adjusted OIBDA 1,556 1,671 Depreciation and amortization (526 )
(523 ) Stock compensation expense (16 ) (18 )
Operating
Income 1,014 1,130
eCommerce Businesses Adjusted OIBDA 112 103 Depreciation and
amortization (40 ) (48 ) Stock compensation expense (18 ) (15 )
Operating Income 54 40
Liberty Starz
Group
Starz, LLC(1) Adjusted OIBDA 384 415 Depreciation and
amortization (16 ) (16 ) Stock compensation expense (38 ) (41 )
Operating Income 330 358 (1)
Includes Starz Entertainment for full year 2010 and Starz
Media for Q4 2010 after the change in attribution of Starz Media
from Liberty Capital to Liberty Starz.
Liberty Media Corp. - Liberty Cap Class A Common Stock (MM) (NASDAQ:LCAPA)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
Liberty Media Corp. - Liberty Cap Class A Common Stock (MM) (NASDAQ:LCAPA)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024