Liberty Interactive Corp (LINT) has reported a 645.59 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $507 million in the quarter, compared with $68 million for the same period last year.
Revenue during the quarter dropped 7.29 percent to $2,327 million from $2,510 million in the previous year period. Gross margin for the quarter expanded 11 basis points over the previous year period to 35.32 percent. Total expenses were 90.85 percent of quarterly revenues, down from 92.47 percent for the same period last year. This has led to an improvement of 162 basis points in operating margin to 9.15 percent.
Operating income for the quarter was $213 million, compared with $189 million in the previous year period.
"We were thrilled to announce the planned acquisition of General Communication and subsequent split-off of Liberty Ventures, which will create two asset-backed stocks: QVC Group and GCI Liberty," said Greg Maffei, Liberty Interactive president and chief executive officer. "This will create real value for all shareholders and provide greater flexibility for both companies going forward. QVC posted tangible improvement in Q1 as US revenue declines mitigated and adjusted OIBDA margin expanded."
Operating cash flow improves significantly
Liberty Interactive Corp has generated cash of $426 million from operating activities during the quarter, up 44.90 percent or $132 million, when compared with the last year period.
The company has spent $52 million cash to meet investing activities during the quarter as against cash inflow of $233 million in the last year period.
The company has spent $387 million cash to carry out financing activities during the quarter as against cash outgo of $226 million in the last year period.
Cash and cash equivalents stood at $821 million as on Mar. 31, 2017, down 70.07 percent or $1,922 million from $2,743 million on Mar. 31, 2016.
Working capital drops significantly
Liberty Interactive Corp has witnessed a decline in the working capital over the last year. It stood at $495 million as at Mar. 31, 2017, down 65.12 percent or $924 million from $1,419 million on Mar. 31, 2016. Current ratio was at 1.20 as on Mar. 31, 2017, down from 1.34 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 34 days for the quarter from 64 days for the last year period. Days sales outstanding were almost stable at 47 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 31 days for the quarter compared with 58 days for the previous year period. At the same time, days payable outstanding went up to 45 days for the quarter from 40 for the same period last year.
Debt comes down
Liberty Interactive Corp has recorded a decline in total debt over the last one year. It stood at $7,930 million as on Mar. 31, 2017, down 10.66 percent or $946 million from $8,876 million on Mar. 31, 2016. Total debt was 38.20 percent of total assets as on Mar. 31, 2017, compared with 42.35 percent on Mar. 31, 2016. Debt to equity ratio was at 1.09 as on Mar. 31, 2017, down from 1.32 as on Mar. 31, 2016. Interest coverage ratio improved to 2.37 for the quarter from 2.03 for the same period last year.
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