Backcountry and Bodybuilding accounted for 80 percent of the sales growth and nearly 69 percent of the growth in operating income before depreciation and amortization at Liberty Interactive Group's Digital Commerce group in 2014, according to financial results released Wednesday.
Liberty Interactive reported revenue from the group increased 7 percent to $306 million in the quarter and 9 percent to $1.0 billion for the year. Backcountry, which sells outdoor and cycling products through several full-price and outlets sites, accounted for $37 million, or 41.6 percent of the incremental revenue, while Bodybuilding.com accounted for $34 million, or 38.2 percent.
The results also reflect results from Evite, The Right Start and CommerceHub, where revenue grew by 5 million for the year.
Backcountry revenue increased as a result of increases in order volume and average order value. The increase in Bodybuilding revenue was primarily due to increased order volume on flat average order values.
Adjusted OIBDA for the continuing Digital Commerce companies increased 17 percent to $41 million in the quarter and 22 percent to $90 million for the year. Backcountry accounted for $9 million, or 56.3 percent of the annual growth, while Bodybuilding generated $2 million, or 12.5 percent of the growth. CommerceHub contributed another $8 million in incremental OIBDA.
Adjusted OIBDA represented 8.8 percent of revenue in 2014, as compared to 7.8 percent of revenue in 2013. Most of our subsidiaries experienced flat to slightly increased Adjusted OIBDA as a percentage of sales for the year ended December 31, 2014, which was primarily the result of improved product margins and cost containment efforts offset by increased marketing and promotional spend and lower advertising revenue due to unfavorable pricing and a shift to mobile applications.
Operating income for the continuing Digital Commerce companies increased 286 percent to $13 million in the quarter and decreased 30 percent to $7 million for the year.
|
DIGITAL COMMERCE FINANCIAL METRICS |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
| (amounts in millions) |
|
|
4Q13 |
|
|
4Q14 |
|
|
% Change |
|
||||
| Revenue(1) |
|
|
|
|
|
|
|
|
|
|
|
|
||
Provide |
|
|
$ |
165 |
|
|
|
$ |
165 |
|
|
|
0 |
% |
Digital Commerce companies – continuing |
|
|
287 |
|
|
306 |
|
|
7 |
% |
||||
| Digital Commerce Companies Revenue |
|
|
$ | 452 |
|
|
$ | 471 |
|
|
4 | % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
| Adjusted OIBDA(1) |
|
|
|
|
|
|
|
|
|
|
|
|
||
Provide |
|
|
$ |
(5 |
) |
|
|
$ |
3 |
|
|
|
160 |
% |
Digital Commerce companies – continuing |
|
|
35 |
|
|
41 |
|
|
17 |
% |
||||
| Digital Commerce Companies Adjusted OIBDA |
|
|
$ | 30 |
|
|
$ | 44 |
|
|
47 | % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
| Operating Income(1) |
|
|
|
|
|
|
|
|
|
|
|
|
||
Provide |
|
|
$ |
(8 |
) |
|
|
$ |
(5 |
) |
|
|
38 |
% |
Digital Commerce companies – continuing |
|
|
(7 |
) |
|
|
13 |
|
|
286 |
% |
|||
| Digital Commerce Companies Operating Income |
|
|
$ | (15 | ) |
|
|
$ | 8 |
|
|
153 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
DIGITAL COMMERCE FINANCIAL METRICS FULL |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
| (amounts in millions) |
|
|
2013 |
|
|
2014 |
|
|
% Change |
|
|||||
| Revenue(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Provide |
|
|
$ |
653 |
|
|
|
$ |
666 |
|
|
|
2 |
|
% |
Digital Commerce companies – continuing |
|
|
943 |
|
|
1,032 |
|
|
9 |
% |
|||||
| Digital Commerce Companies Revenue |
|
|
|||||||||||||
