Liberty Interactive Corp. (QVCA) reported adjusted net income of $273 million, up 25% from the fourth quarter of 2013.
Quarterly total revenue of $2,781 million reflected a year-over-year improvement of 1% but fell short of the Zacks Consensus Estimate of $2,883 million.
Quarterly total operating income came in at $445 million compared with $425 million in the year-ago quarter. In the reported quarter, consolidated adjusted operating income before depreciation and amortization stood at $612 million against $592 million in the year-ago quarter.
In 2014, Liberty Interactive generated $1,640 million of cash from operations compared with $1,027 million in the year-ago period. Free cash flow in the reported period was $1,399 million against $736 million in the prior-year period.
At the end of the fourth quarter of 2014, Liberty Interactive had total cash and cash equivalents of $2,306 million compared with $602 million at the end of 2013. The company exited the reported quarter with $8,051 million of outstanding debt compared with $5,083 million at the end of 2013. The debt-to-capitalization ratio at the end of third quarter was 0.58 compared with 0.44 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). Liberty Interactive also holds approximately 38% of HSN Inc. (HSNI) and about 22% of the equity and 57% of the total votes of all classes of TripAdvisor Inc.’s (TRIP) common stock. Liberty Interactive currently has a Zacks Rank #3 (Hold).
QVC Segment
Quarterly total revenue at the QVC segment was $2,781 million, up 1.5% year over year. Adjusted OIBDA was $620 million, up 4.2% year over year. Operating income stood at $459 million, up 4.1% year over year.
Quarterly revenues of QVC U.S. inched up 5.1% year over year to $2,030 million. Gross margin was 35.6% against 34.7% in the prior-year quarter. Adjusted OIBDA stood at $474 million, up 8.5% year over year. Operating income was $349 million, up 8% year over year. Quarterly revenues of QVC International declined 7.2% year over year to $751 million. Gross margin was 37.7% compared with 37.8% in the prior-year quarter. Adjusted OIBDA stood at $146 million, down 7.6% year over year. Operating income was $110 million, down 6.8% from the year-ago quarter.
Digital Commerce Segment
Quarterly revenues at the Digital Commerce segment totaled $471 million, up 4% year over year. Quarterly adjusted OIBDA was $44 million, up a substantial 47% year over year. Operating income was $8 million as against an operating loss of $15 million in the year-ago quarter.
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