Liberty Interactive Groups non-QVC e-commerce businesses, which include Backcountry.com, Bodybuilding.com 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.
“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.”
In the aggregate, Liberty Interactive Groups 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 $19 million. The increase in revenue, adjusted OIBDA and operating income were the result of the Easter holiday falling during the first quarter of 2013, increased marketing efforts driving additional traffic, greater conversion resulting in site optimization, increased shipping charges, and broader inventory offerings. The decrease in adjusted OIBDA as a percentage of revenue was primarily due to an inventory reserve adjustment at one of our subsidiaries and lower product margins as a result of product discounts and promotions offered during the period.
Our e-commerce companies showed marked improvement and returned to growth in adjusted OIBDA, stated Greg Maffei, Liberty President and CEO.
LIBERTY INTERACTIVE GROUP FINANCIAL METRICS – QUARTER
(amounts in millions)
|Total QVC Revenue||1,932||$||1,974||2||%|
|Total Liberty Interactive Group Revenue||$||2,314||$||2,434||5||%|
|Total QVC Adjusted OIBDA||390||404||4||%|
|Corporate and other||(5||)||(6||)||-20||%|
|Total Liberty Interactive Group Adjusted OIBDA||$||419||$||437||4||%|
|Total QVC Operating Income||$||258||$||260||1||%|
|Corporate and other||(14||)||(19||)||-36||%|
|Total Liberty Interactive Group Operating Income||$||259||$||260||0||%|