New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Liberty Media Corp. Interactive Common S Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 8, 2011 01:23PM

Liberty Media Corp. Interactive Common S (LINTA) filed Quarterly Report for the period ended 2011-09-30. Liberty Media Corp. Series A has a market cap of $9.48 billion; its shares were traded at around $16.55 with a P/E ratio of 13.8 and P/S ratio of 1.1. Liberty Media Corp. Series A had an annual average earning growth of 22% over the past 10 years.



Highlight of Business Operations:

Revenue. Our consolidated revenue increased 8.4% and 8.1% for the three and nine month periods ended September 30, 2011 and 2010, respectively as compared to the corresponding prior year period. The three months increase was primarily due to increased revenue at QVC ($115 million) and the E-commerce companies ($50 million). The nine month increase is due to greater sales at QVC ($333 million) and the E-commerce businesses ($158 million). See "Results of Operations - Businesses" below for a more complete discussion of the results of operations of certain of our subsidiaries.

QVC's consolidated net revenue increased 6.5% and 6.3% during the three and nine months ended September 30, 2011, respectively, as compared to the prior year period. The three month increase in net revenue is comprised of $152 million due to a 7.9% increase in the average sales price per unit (“ASP”) and $55 million due to favorable foreign currency rates in all international markets. These increases were partially offset by a $45 million increase in estimated product returns, $36 million due to a 1.8% decrease in units sold from 39.2 million to 38.5 million and an $11 million decrease in net shipping and handling revenue. Returns as a percent of gross product revenue increased to 20.7% from 19.6%. The nine month increase in net revenue is comprised of $311 million due to a 5.3% increase in ASP and $149 million due to favorable foreign currency rates in all international markets. These increases were partially offset by a $95 million increase in product returns, a $19 million decrease in net shipping and handling revenue and $13 million decrease due to a 0.2% decrease in units sold from 115.5 million to 115.2 million. Returns as a percent of gross product revenue increased to 20.0% from 19.3%.

QVC's operating expenses are principally comprised of commissions, order processing and customer service expenses, credit card processing fees, telecommunications expense and production costs. Operating expenses increased 7.0 % and 7.8% for the three and nine month periods ended September 30, 2011, as compared to the prior year period. Included in these increases is growth of $2 million and $9 million for the three and nine months ended September 30, 2011, respectively related to QVC-Italy operations. Other increases include greater commissions expense due to sales growth as well as increased fixed fee payments in the UK and Japan, an increase in production and customer service personnel expenses and an increase in credit card fees due to sales growth for the quarter as well as an increase in rates for the year.

QVC's SG&A expenses include personnel, information technology, provision for doubtful accounts, credit card income and marketing and advertising expenses. Such expenses increased as a percent of net revenue from 5.9% to 6.5% for the three months ended September 30, 2011 and from 5.5% to 6.3% for the nine months ended September 30, 2011. SG&A increased for the three and nine months ended September 30, 2011 $18 million and $64 million as a result of a variety of factors. Italy's SG&A expenses increased $4 million and $13 million, for the three and nine month periods, respectively. Net credit card operations period over period were down $5 million and $17 million, respectively, and foreign exchange rates and a weakening dollar contributed $4 million and $11 million of an increase in SG&A expenses for the three and nine month periods, respectively. The remainder of QVC's SG&A expense increased $5 million for the three months ended September 30, 2011 and $23 million for the nine months ended September 30, 2011. The remaining increase for the three months ended September 30, 2011 was primarily the result of an increase in bad debt, franchise taxes and online marketing expense. Bad debt increased in the third quarter compared to the prior year period due to increased penetration of product offerings on our Easy Pay installment program as a percent of overall sales as well as an increase in our overall experience rate of bad debt. The remaining increase for the nine months ended September 30, 2011 was primarily the result of an increase in franchise taxes, online marketing, outside services and charitable contributions primarily related to Japanese relief efforts. The increase in outside services for the nine months ended September 30, 2011 is due primarily to legal services related to the defense of certain patent infringement matters. Franchise taxes increased in both periods due primarily to the recording of a Pennsylvania film tax credit. Online marketing expense increased in both periods due to increased investment in paid search and email marketing campaigns.

E-commerce businesses. Our e-commerce businesses are comprised primarily of Provide, Backcountry, Bodybuilding and Celebrate. Revenue for the e-commerce businesses is seasonal due to certain holidays, which drive a significant portion of the e-commerce businesses' revenue. The third quarter is generally lower, as compared to the other three quarters, due to fewer holidays. Revenue increased $50 million and $158 million for the three and nine months ended September 30, 2011, as compared to the corresponding prior year periods. Each of our respective e-commerce businesses reported an increase in revenue for the three and nine months ended September 30, 2011 as compared to the corresponding prior year periods. Such increases are the result of acquisitions, increased marketing efforts driving additional traffic and greater conversion due to site optimization and broader inventory offerings. Adjusted OIBDA for the e-commerce businesses was down $1 million for the three months ended September 30, 2011 and increased $18 million for the nine month period ended September 30, 2011 representing 3.6% and 8.1% of revenue in 2011, respectively, as compared to 5.1% and 7.4% in 2010, respectively. The decrease in Adjusted OIBDA conversion is primarily the result of further investment in marketing, personnel and technology for each of the consolidated businesses.

Read the The complete Report



Stocks Discussed: LINTA,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial