Liberty Interactive Corporation (LINT) has reported 146.84 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $469 million in the quarter, compared with $190 million for the same period last year.
Revenue during the quarter grew 12.03 percent to $2,412 million from $2,153 million in the previous year period. Gross margin for the quarter contracted 222 basis points over the previous year period to 34.70 percent. Total expenses were 93.49 percent of quarterly revenues, up from 88.53 percent for the same period last year. That has resulted in a contraction of 496 basis points in operating margin to 6.51 percent.
Operating income for the quarter was $157 million, compared with $247 million in the previous year period.
"QVC did well internationally and just launched Beauty iQ, a new multiplatform network dedicated to beauty while zulily again posted impressive results," said Greg Maffei, Liberty Interactive President and chief executive officer. "At Liberty Ventures, we completed the tax-free split-off of Expedia Holdings resulting in a distribution of $300 million that was attributed to Ventures."
Operating cash flow improves significantlyLiberty Interactive Corporation has generated cash of $1,035 million from operating activities during the nine month period, up 28.89 percent or $232 million, when compared with the last year period. The company has spent $1,398 million cash to meet investing activities during the nine month period as against cash inflow of $149 million in the last year period
The company has spent $1,588 million cash to carry out financing activities during the nine month period as against cash outgo of $708 million in the last year period.
Cash and cash equivalents stood at $505 million as on Sep. 30, 2016, down 80.16 percent or $2,041 million from $2,546 million on Sep. 30, 2015.
Working capital drops significantly
Liberty Interactive Corporation has witnessed a decline in the working capital over the last year. It stood at $281 million as at Sep. 30, 2016, down 86.72 percent or $1,835 million from $2,116 million on Sep. 30, 2015. Current ratio was at 1.12 as on Sep. 30, 2016, down from 1.59 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 28 days for the quarter from 69 days for the last year period. Days sales outstanding went down to 33 days for the quarter compared with 38 days for the same period last year.
Days inventory outstanding has decreased to 35 days for the quarter compared with 77 days for the previous year period. At the same time, days payable outstanding went down to 39 days for the quarter from 46 for the same period last year.
Debt moves up marginallyLiberty Interactive Corporation has witnessed an increase in total debt over the last one year. It stood at $8,155 million as on Sep. 30, 2016, up 3.82 percent or $300 million from $7,855 million on Sep. 30, 2015. Total debt was 38.77 percent of total assets as on Sep. 30, 2016, compared with 42.96 percent on Sep. 30, 2015. Debt to equity ratio was at 1.12 as on Sep. 30, 2016, down from 1.35 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 1.71 for the quarter from 2.81 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
