Liberty Interactive Group Release Quarterly Financial Metrics Margins Remained Under Pressure in Q1 Sales up Strongly at


Liberty Interactive Group's non-QVC e-commerce businesses, which include, and several other companies, grew revenue by 20 percent and adjusted operating income before depreciation and amortization (OIBDA) by 15 percent in the first quarter ended March 31. Operating income grew by 27 percent.

While the company does not break out results for individual businesses, Liberty Interactive’s President and CEO Greg Maffei told analysts was hurt by a surplus of winter goods, but made sold strides into anciallary markets.

Looking at Backcountry, I think they have largely been a victim of poor winter weather,” Maffei told analysts in the company’s earnings call. “They have a better start in terms of revenue this year, still some margin pressures because of release of prior-year goods, not just with us, but in the industry. And great progress in some of their ancillary categories, like cyclists and BMX gear. So I think we feel very good about the progress of Backcountry. Pray for cold, early winter weather and we will have good results.” had great top line growth, but also struggled to maintain margins due to promotions.


In the aggregate, Liberty Interactive Group's eCommerce businesses increased revenue 20 percent to $460 million for the first quarter. Adjusted OIBDA increased 15 percent to $39 million and operating income increased 27 percent to $19 million. The increase in revenue, adjusted OIBDA and operating income were the result of the Easter holiday falling during the first quarter of 2013, increased marketing efforts driving additional traffic, greater conversion resulting in site optimization, increased shipping charges, and broader inventory offerings. The decrease in adjusted OIBDA as a percentage of revenue was primarily due to an inventory reserve adjustment at one of our subsidiaries and lower product margins as a result of product discounts and promotions offered during the period.


Liberty reports results from QVC separately from its other e-commerce businesses, which include,, Celebrate Interactive, CommerceHub and interests in HSN and Lockerz.


"Our e-commerce companies showed marked improvement and returned to growth in adjusted OIBDA," stated Greg Maffei, Liberty President and CEO.
(amounts in millions) 1Q12 1Q13 % Change
US $ 1,240 $ 1,297 5 %
International 692 677 -2 %
Total QVC Revenue 1,932 $ 1,974 2 %
eCommerce businesses 382 460 20 %
Total Liberty Interactive Group Revenue $ 2,314 $ 2,434 5 %
Adjusted OIBDA
US $ 270 $ 291 8 %
International 120 113 -6 %
Total QVC Adjusted OIBDA 390 404 4 %
eCommerce businesses 34 39 15 %
Corporate and other (5 ) (6 ) -20 %
Total Liberty Interactive Group Adjusted OIBDA $ 419 $ 437 4 %
Operating Income
US $ 171 $ 180 5 %
International 87 80 -8 %
Total QVC Operating Income $ 258 $ 260 1 %
eCommerce businesses 15 19 27 %
Corporate and other (14 ) (19 ) -36 %
Total Liberty Interactive Group Operating Income $ 259 $ 260 0 %


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