Posts Tagged ‘Liberty Interactive’

QVC’s Parent, And John Malone, Go Back To The Past

April 5, 2017

In a deal that we have’t quite figured out yet, on Tuesday QVC’s parent, Liberty Interactive Corp., announced that it was purchasing an Alaska-based cable company, General Communications Inc.

The power behind the throne at Liberty is John Malone, a cable cowboy and financial whiz who made his name creating the cable giant Tele-Communications Inc. years ago.

Here is part of the announcement:

Liberty Interactive Corporation (“Liberty Interactive”) (Nasdaq: QVCA, QVCB, LVNTA, LVNTB) and General Communication, Inc. (“GCI”) (Nasdaq: GNCMA) today announced that they have entered into a definitive agreement (the “Agreement”) whereby Liberty Interactive will acquire GCI through a reorganization in which certain Liberty Ventures Group (“Liberty Ventures”) assets and liabilities will be contributed to GCI in exchange for a controlling interest in GCI.

Liberty Interactive will then effect a tax-free separation of its controlling interest in the combined company (to be named GCI Liberty, Inc. (“GCI Liberty”)) to the holders of Liberty Ventures common stock in full redemption of all outstanding shares of such stock.

“We are pleased to announce this transaction with GCI,” said Greg Maffei, Liberty Interactive President and CEO. “GCI is the largest communications provider in Alaska, generates solid cash flow with upside potential and is a strong fit with the largest businesses in Liberty Ventures. This transaction will ultimately create a standalone Liberty Ventures, reducing the tracking stock discount and enabling an asset-backed QVC Group.”

“This transaction with Liberty Interactive brings GCI back full circle, as GCI was part of TCI until 1986. We couldn’t think of a better owner, and look forward to being the largest operating asset within GCI Liberty,” said Ron Duncan, GCI President and CEO. “We will continue to run the company with our focus on providing the best value for Alaska customers, offering opportunities for our employees and investing wisely in the Alaska market.”

Liberty Interactive believes the creation of GCI Liberty will provide the following benefits:

Reduce Liberty Ventures tracking stock discount
Provide greater flexibility for GCI Liberty to pursue future strategic transactions
Produce strong free cash flow allowing for potential stock repurchases
Establish a strong currency that will be a more effective tool for management compensation and retention
Provide financial flexibility for future borrowings

Liberty Interactive believes an asset-backed QVC Group will provide the following benefits:

Establish leading pure play discovery based retail and eCommerce company
Liberty Interactive expected to be renamed QVC Group, Inc.
Make QVC Group eligible for possible inclusion in stock indices through elimination of tracking stock structure
Reduce the tracking stock discount
Increase near-term and annual liquidity through reattribution (discussed below) of approximately $329 million(1) of cash and approximately $130 million annual free cash flow from tax savings related to exchangeable bonds that will grow
Cash can be used for investments, stock repurchases and debt reduction
Establish a strong currency that will be a more effective tool for management compensation and retention and for potential future acquisitions
Maintain strong ability and liquidity to service all debt.

Even Reuters agreed that this is a complex transaction, which is Malone’s specialty.

QVC Sees 4 Percent Gain, To $1.4 Billion, In Third-Quarter Sales

November 5, 2015

Following on the heels of HSN’s report, QVC announced Wednesday that its revenue increased 4 percent to $1.4 billion in the third quarter versus last year.

Earlier in the day, HSN said that its net sales in the quarter rose 2 percent, to $590.6 million, which was below Wall Street’s projections.

At the No. 1 domestic home shopping network, part of Liberty Interactive Corp., units sold rose 5 percent; average selling price per unit increased 1 percent to $58.70; and returns as a percentage of gross product revenue increased 21 basis points.

QVC U.S. experienced growth in the apparel, accessories, home and beauty categories, which was partially offset by a decline primarily in jewelry.

Ecommerce revenue increased 15 percent to $678 million and was up 48 percent from 43 percent of total QVC revenue.

Adjusted OIBDA increased 1 percent to $333 million and adjusted OIBDA margin decreased 55 basis points to 23.5 percent. These results were primarily due to higher freight and inventory obsolescence expense, which were partially offset by higher product margins and lower bad debt expenses.

“QVC generated strong results across the board with local currency growth in all consolidated markets for the second quarter in a row,” Liberty Interactive President and CEO Greg Maffei.

“The expansion in mobile orders continues at a rapid pace, comprising 53 percent of consolidated ecommerce orders,” he said. “We completed the acquisition of Zulily and have already begun introducing its customers to QVC.”

The entire QVC group, which includes Liberty Interactive’s many international home shopping networks, saw its consolidated revenue drop 1 percent, to $2 billion.

“U.S. dollar denominated results were negatively impacted by exchange rate fluctuations in the third quarter,” QVC said in its press release.

The Dollar strengthened against the Euro, Japanese yen and British pound sterling 16 percent, 15 percent and 7 percent, respectively.

On a constant currency basis, consolidated revenue increased 4 percent and adjusted OIBDA increased 1 percent compared to a 1 percent and 2 percent decline in dollars, respectively.

Excluding the costs related to launch QVC France, consolidated adjusted OIBDA increased 3 percent on a constant-currency basis in the quarter.

“We delivered strong constant currency revenue gains across markets as we continued to execute our strategies to extend our leading global video and eCommerce position,” QVC President and CEO Mike George said.

“We expanded our commerce platform reach with additional TV carriage and increased digital penetration, and mobile orders now represent over 50% of all eCommerce orders,” he said.

“We enhanced our merchandise differentiation with key brand launches and leverage of our global vendor network. Our joint venture in China generated outstanding results, and on October 1st we welcomed Zulily to the QVC Group, extending our reach to millennial customers.”

HSN, QVC Set First-Quarter Earnings Releases

April 18, 2015

It’s that time of the year, first-quarter earnings.

Last week HSN said that it would report first-quarter results May 6 at 8 a.m. Eastern Time before the market opens.

CEO Mindy Grossman and COO and CFO Judy Schmeling will hold a conference call at 9 a.m. Eastern Time to review these results.

There will be a simultaneous audio webcast available via the company’s website at

A replay of the conference call can be accessed until May 20 by dialing 855-859-2056 or 404-537-3406, plus the pass code 16764611 and will also be hosted on the company’s website for a limited time.

QVC’s parent, Liberty Interactive Corp., will do its first-quarter earnings call May 8 at 12:15 p.m.

The first-quarter earnings conference call will be broadcast live via the Internet. All interested participants should visit the Liberty Interactive website at to register for the webcast.

Links to the press release and replays of the call will also be available on the Liberty Interactive website. The conference call and related materials will be archived for one year.

QVC Posts 5 Percent Revenue Gain In Third Quarter

November 5, 2014

QVC posted a 5 percent revenue increase in the third quarter, to $1.4 billion, the network’s parent reported Tuesday.

The No. 1 home shopping network attributed its gains primarily due to strength in the home, apparel and accessories categories, partially offset by weakness in electronics.

“We delivered our strongest quarterly performance of 2014 in the third quarter,” QVC President and CEO Mike George said in a canned statement. “We drove good growth and generated strong operating leverage, particularly in the U.S., Germany, the UK and Italy. We continue to benefit from our customer-centric focus, which has resulted in outstanding customer loyalty in all our markets, as well as strong e-commerce penetration and mobile growth.”

Earlier in the day, HSN reported a 7 percent increase in its net sales, to $578.3 million.

At QVC, the average selling price per unit (“ASP”) increased 1 percent to $58.19 from $57.88 and units sold increased 4 percent.

Returns as a percentage of gross product revenue improved 59 basis points. E-commerce revenue increased 11 percent to $592 million and grew to 43 percent from 41 percent as a percentage of total U.S. revenue.

Adjusted OIBDA increased 8 percent to $329 million and adjusted OIBDA margin increased 72 basis points.

Adjusted OIBDA margin increased primarily due to improved product margins, lower state franchise tax expense associated with the timing of credits and audit settlements and higher proprietary credit card income due in part to unfavorable regulatory bank reserve adjustments experienced in the prior year, as well as the positive impact of renegotiated contract terms. These gains were partially offset by higher freight costs.

QVC’s consolidated revenue, which includes its international networks, had consolidated revenue of $2 billion, up 4 percent.

Pure-play QVC Group Tracking Stock Starts Trading

October 22, 2014

The pure-play tracking stock for the QVC Group is now trading on NASDAQ under the ticker symbols “QVCA” and “QVCB,” respectively.

QVC’s parent, Liberty Interactive Corp. (“Liberty”) (Nasdaq: QVCA, QVCB, LVNTA, LVNTB), has recently realigned Liberty’s businesses to create a pure-play retail tracking stock that will track the performance of QVC Inc. and Liberty’s roughly 38 percent interest in HSN Inc., as well as cash and certain liabilities, and the tracking stock group formerly known as the Interactive Group is now known as the QVC Group.

The QVC Group tracking stock allows investors to more closely track QVC’s strong performance, including its leadership in mobile ecommerce and its visionary innovations that provide customers with a seamless, integrated shopping experience across all digital platforms.

It also provides greater clarity and visibility into QVC’s operational and financial results, according to a press release.

“QVC has emerged as a clear leader in the retail space,” QVC President and CEO Mike George said in a canned statement.

“Our multichannel approach provides an engaging and immersive shopping experience that fosters meaningful relationships and customer loyalty. The QVC tracking stock is a testament to both our progress and future growth potential. As we build upon our track record of top-line expansion, industry-leading margins, and prudent capital allocation, we look forward to delivering increasing value to our shareholders.”

QVC To Be Spun Off As Its Own Stock

October 4, 2014

How much do you really love QVC? Is it enough to buy its stock?

Liberty Interactive Corp., the parent of the No. 1 home shopping network, made some moves Friday to pave the way to spinning off QVC as its own tracking stock.

It did that by sliding its digital commerce companies —,, CommerceHub, Evite, Provide Commerce and The Right Start — into a new company called Liberty Ventures Group. Those assets are valued at $1.5 billion, and $1 billion in cash.

In return, Liberty Interactive Group shareholders will receive roughly 67.67 million shares of Liberty Ventures common stock or about 0.14 of a Liberty Ventures share for each share of Liberty Interactive Group common stock outstanding on the record date.

“We are excited to introduce the QVC Group which focuses on our leadership position in video commerce, enables a cleaner comparable analysis and provides for more targeted share repurchase and equity incentives,” Greg Maffei, Liberty Interactive President and CEO, said in a canned statement.

“The Liberty Ventures Group is projected to have over $2.7 billion in cash by year end which we can invest in a wide set of opportunities in TMT, including digital commerce.”

In exchange for the digital commerce companies and $970 million of cash (collectively, the “Reattributed Assets”), an inter-group interest in Liberty Ventures Group was created in favor of the Liberty Interactive Group, which we now refer to as the QVC Group.

In other words, the bottom line is that QVC and Liberty’s stake in HSN, will have the name QVC Group.

QVC Posts 3 Percent Growth, To $1.4 Billion, In Second Quarter

August 6, 2014

QVC saw its second-quarter revenue rise 3 percent, to $1.4 billion, but operating income slipped 2 percent, the home shopping network’s parent reported Tuesday.

QVC attributed its second-quarter growth primarily “to strength in all categories except electronics and jewelry,” the network’s parent, Liberty Interactive Corp., said in a press release.

Average selling price per unit (“ASP”) increased 1 percent to $57.05 from $56.39 and units sold increased 3 percent.

Returns as a percentage of gross product revenue increased 35 basis points.

E-commerce revenue increased 7 percent to $588 million and rose slightly to 43 percent from 42 percent as a percentage of total U.S. revenue. And QVC U.S. mobile penetration was 37 percent of orders.

Adjusted OIBDA increased 2 percent to $325 million and adjusted OIBDA margin decreased 35 basis points. The adjusted OIBDA margin decreased primarily due to continued investment in commerce platforms and e-commerce marketing, which were partially offset by higher product margins.

Liberty released 2Q results for not only the U.S. QVC network but the company’s international home shopping channels. Overall, including those networks, QVC’s consolidated revenue increased 3 percent, to $2 billion in the quarter.

Adjusted OIBDA increased a hair, 1 percent to $439 million, and operating income was essentially flat at $284 million.

“Our second-quarter performance reflects the strategic actions we are taking to extend our highly differentiated retail model across geographies and commerce platforms,” QVC President and CEO Mike George said in a canned statement.

“We generated solid results, with strong gains in Europe and China and improved growth in the U.S., partially offset by macro challenges in Japan,” George said.

“As we re-imagine the worlds of shopping, entertainment and social as one, we continue to deliver a high-quality value proposition to our customers, as evidenced by our strong e-commerce and mobile penetration and excellent customer retention.”

QVC’s Parent Sells E-Commerce Unit To Florist FTD

July 31, 2014

QVC’s parent, Liberty Interactive Corp., did a big deal Wednesday. And it smells like a good one.

Liberty and FTD Cos. struck an agreement for the floral company to buy Liberty’s Provide Commerce floral and gifting businesses.

Under the terms of the $430 million transaction, Liberty will receive 10.2 million shares of FTD common stock representing 35 percent of the combined company and $121 million in cash. FTD and Liberty expect to complete the transaction by the end of the year.

How does this affect QVC?

Liberty plans to create two different tracking stocks, namely QVC Group as the umbrella for the home shopping network,Liberty’s stake in HSN; and Liberty Digital Commerce to represent e-commerce businesses such as Provide Commerce.

That stock split will now be delayed.

“Liberty Interactive still plans to create the QVC Group tracking stock, which will be comprised of its interests in QVC and HSN,” the company said in a press release.

“In light of the pending Provide Commerce transaction, and other factors, Liberty is reevaluating the optimal structure and best alignment of the Liberty Digital Commerce Group assets. As a result, the timing of the transition to the QVC Group has been delayed.”

Here is part of Liberty’s statement on its FTD deal.

The strategic combination of FTD’s brand and floral network with the Provide Commerce collection of established and highly recognizable consumer gifting e-commerce brands, which include ProFlowers, Shari’s Berries and Personal Creations, will further FTD’s vision to become the world’s leading and most trusted floral and gifting company.

The transaction will unite two highly complementary businesses, generate material cost synergies and create a team with “best-in-class” operating strategies.

Together, FTD and Provide Commerce, each with over $600 million in annual revenues, will offer consumers innovative and expansive floral and gift products and an enhanced shopping experience.

The combined company will also allow FTD to provide greater support for the overall floral industry by expanding resources to create new programs and services to support member florists in their local businesses.

“This transaction provides the opportunity to create significant value for our stockholders and offers immediate benefits for consumers and our premier network of member florists. The combination of these businesses will expand the breadth of our brands, provide opportunities to further diversify our revenue streams and open up additional avenues for growth and innovation,” said Robert S. Apatoff, President and Chief Executive Officer of FTD.

“We expect the combination with Provide Commerce’s highly recognizable and successful portfolio of brands to enhance our already robust consumer product offerings. In addition, we expect the transaction will provide us with greater resources to further develop new product and service categories and broaden our consumer demographic through complementary customer bases. We are excited about the opportunities this combination will create for consumers, member florists and our stockholders.”

“We are excited to become the largest shareholder in the complementary businesses of Provide Commerce and FTD,” said Gregory B. Maffei, President and CEO of Liberty. “FTD has an extensive florist network while Provide Commerce has a proven ability to source their flowers directly from top growers. The combined company will be able to offer comprehensive and unique gifting services in the U.S. and around the world.”

“FTD and Provide Commerce share a common mission and vision,” said Chris Shimojima, CEO of Provide Commerce. “Together we will create outstanding and delighting gifting experiences for our customers for all of life’s most important moments.”

Summary of Strategic and Financial Benefits

The transaction is expected to create one of the most diversified, established and trusted floral and gifting companies in the world. FTD believes the combination will provide the following strategic and financial benefits:

Deepens Consumer Gifting Category: The combination of Provide Commerce’s collection of respected and highly recognizable e-commerce brands, including ProFlowers, Shari’s Berries and Personal Creations, with FTD’s iconic brands, FTD and Interflora, and Mercury Man logo is expected to enhance FTD’s already robust consumer floral and gifting category.

Strengthens Floral Network: The expected efficiencies and greater resources of this combination will enable FTD to further invest in new products, services and technology that are expected to directly benefit its vast network of florists and the floral industry as a whole.

Enhances Consumer Shopping Experience: FTD will immediately be able to offer a wider selection of floral and gifting products, providing consumers with greater convenience and choice.

Provides Significant Cost Synergies: The combination is expected to generate more than $25 million in annual synergies within 36 months of closing, with a goal of creating incremental value for FTD stockholders over time.

QVC Honcho Mike George Got $1.2 Million In Comp In 2013

June 24, 2014

QVC Inc. President and CEO Mike George received $1.2 million in executive compensation last year, way down from the prior year’s $18.2 million.

That was the dish from the proxy statement that QVC’s parent, Liberty Interactive Corp., filed Monday with the Securities and Exchange Commission.

We’ve read the filing several times, and our thick head still can’t figure out exactly why George’s comp took such a hit. We’re not sure if it is related to stock options he has coming, or what.

We do know that the CEO of QVC’s parent, Greg Maffei, also had a significant drop in his executive compensation in 2013. It nosedived to $2.7 million from $45.3 million in 2012.

George’s base salary was just about flat this year, at just over $1 million. The biggest change in his comp was for option awards: He had none in 2013 but $16.1 million in 2012.

Of anyone can make sense of the filing, please enlighten us.

QVC Sets May 15 Investor Webcast

May 8, 2014

QVC and Liberty Interactive will webcast an investor meeting for the home shopping next Thursday, with presentations beginning at 10 a.m., the companies said Wednesday.

During these presentations, observations may be made regarding the company’s financial performance and outlook.

The presentation will be broadcast live via the Internet.

All interested persons should visit the Liberty Interactive Corp. website at to register for the webcast. An archive of the webcast will also be available on this website for 30 days after any appropriate filings have been made with the SEC.