Liberty Media Corporation (LMCA) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $115 million in the quarter, against a net loss of $22 million in the last year period.
Revenue during the quarter grew 7.87 percent to $1,385 million from $1,284 million in the previous year period. Gross margin for the quarter expanded 12 basis points over the previous year period to 55.96 percent. Total expenses were 74.58 percent of quarterly revenues, down from 75 percent for the same period last year. This has led to an improvement of 42 basis points in operating margin to 25.42 percent.
Operating income for the quarter was $352 million, compared with $321 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $491.89 million compared with $447.19 million in the prior year period. At the same time, adjusted EBITDA margin improved 69 basis points in the quarter to 35.52 percent from 34.83 percent in the last year period.
"We were thrilled to announce our planned acquisition of F1, the iconic global motorsports business. We see tremendous opportunities and are excited for Chase Carey to bring his media and business experience to the sport," said Greg Maffei, Liberty president and chief executive officer. "SiriusXM again turned in stellar results, now servicing nearly 31 million customers, and also intends to institute a quarterly dividend. Live Nation also produced outstanding results, with record quarterly growth in operating income and adjusted operating income across each core division. The Atlanta Braves dramatically improved on-field performance in the second half of the season and we look forward to moving to SunTrust Park in 2017."
Operating cash flow improves significantly
Liberty Media Corporation has generated cash of $1,651 million from operating activities during the nine month period, up 84.88 percent or $758 million, when compared with the last year period.
The company has spent $1,010 million cash to meet investing activities during the nine month period as against cash inflow of $51 million in the last year period
Cash flow from financing activities was $98 million for the nine month period as against cash outgo of $1,037 million in the last year period.
Cash and cash equivalents stood at $940 million as on Sep. 30, 2016, up 59.86 percent or $352 million from $588 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Liberty Media Corporation was negative $1,814 million on Sep. 30, 2016 compared with negative $651 million on Sep. 30, 2015. Current ratio was at 0.45 as on Sep. 30, 2016, down from 0.76 on Sep. 30, 2015.
Days sales outstanding went down to 20 days for the quarter compared with 22 days for the same period last year.
At the same time, days payable outstanding went down to 133 days for the quarter from 137 for the same period last year.
Debt moves up
Liberty Media Corporation has witnessed an increase in total debt over the last one year. It stood at $8,119 million as on Sep. 30, 2016, up 19.36 percent or $1,317 million from $6,802 million on Sep. 30, 2015. Total debt was 25.72 percent of total assets as on Sep. 30, 2016, compared with 22.17 percent on Sep. 30, 2015. Debt to equity ratio was at 0.45 as on Sep. 30, 2016, up from 0.37 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 3.59 for the quarter from 3.82 for the same period last year.
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