Cross-Media Success: Liberty Posts Strong Results

Getting strong results from its QVC shopping channel help Liberty Media Group post improved results for its first quarter.

QVC posted 15% gain in operating income to $366 million and an 11% improvement in revenue to $1.8 billion -- largely due to improved economic conditions. The average selling price of products on the cable shopping network was up a bit to $51.16 from $51.07, with total units increasing 9% to 24.5 million from 22.5 million.

From just U.S. operations, QVC had a 10% hike to $1.2 billion and a 19% gain in operating income to $261 million. Overall, Liberty Interactive Group, of which QVC is a major piece, grew 11% overall in revenue to $2 billion with 12% more in operating income.

Other divisions in the Interactive group include: Provide Commerce, Backcountry.com, Bodybuilding.com, BUYSEASONS, CommerceHub, LOCKERZ and The Right Start, and interests in IAC/InterActiveCorp, HSN, Tree.com, Interval Leisure Group and Expedia.

Liberty Media's smaller Liberty Starz Group tallied a 3% hike to $307 million in the period, with operating income improving 14%. But its OIBDA (operating income before depreciation and amortization) sank 1% to $103 million, due to marketing expenses to promote Starz new drama "Spartacus: Blood and Sand." Starz, the pay TV service, also took a $4 million charge related to its second season of "Crash."

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Liberty Capital Group, which includes the theatrical division, Overture Films and home video revenues from Starz Media, had revenues gaining 33% to $166 million, while its OIBDA was $11 million lower for the quarter. The increase in revenue came from $20 million gain in theatrical revenue and a $21 million hike in home video revenue at Starz Media.

The decrease in income came from the number and timing of films released theatrically and on home video by Overture Films and the related marketing expenses, the company said.

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