Liberty Media Corp. (LINTA) reported solid top-line growth in the first quarter of 2011. Quarterly total revenue of $3,131million handily surpassed the Zacks Consensus Estimate of $2,187 million and improved 54.6% year over year.
Quarterly total operating income was $672 million compared with $240 million in the year-ago quarter. In the first quarter of 2011, consolidated adjusted OIBDA was $862 million compared with $441 million in the year-ago quarter. Quarterly earnings from continuing operations before income tax was $654 million compared with $607 million in the year-ago quarter.
At the end of the first quarter of 2011, Liberty Media had total consolidated cash and marketable securities of $3,959 million, up 5.4% sequentially. Liberty Media exited the first-quarter 2011 with $7,450 million in outstanding debt, up 1.8% sequentially.
First Quarter Group Details
Liberty Interactive Group: Quarterly total revenue for the group was $2,159 million, up 7.3% year over year. Adjusted OIBDA was $392 million, up 4% year over year. Operating income was $233 million, down 1.3% year over year.
Within this segment, QVC revenue was $1,835 million, up 4.4% year over year. Adjusted OIBDA was $363 million, down 0.8% year over year. Operating income was $225 million, down 3% year over year. QVC domestic revenue inched up 3.1% year over year and QVC international revenue increased 7% year over year.
eCommerce Business revenue was $324 million, up 21% year over year. Quarterly adjusted OIBDA was $29 million, up 61% year over year. Operating income was $8 million, up 100% year over year.
Liberty STARZ Group:Quarterly total revenue generated by the group was $391 million, up 28.2% year over year. Adjusted OIBDA was $131 million, up 23.6% year over year. Operating income was $124 million, up 25.3% year over year. Of the additional $86 million revenue generated in the reported quarter, Starz Media businesses contributed $65 million, Starz Entertainment contributed $10 million, and the remaining $11 million was added by Starz original content.
Liberty Starz has decided to hike its original programming time to more than double year over year in 2011. At the same time, Starz will also try to expand globally to compete with Time Warner Inc’s (TWX) HBO.
Liberty Capital Group:Quarterly total consolidated revenue for the group was up 41% year over year at $581 million. Adjusted OIBDA was $358 million compared with a negative $43 million in the year-ago quarter. Operating income was $343 million compared with a negative $70 million in the year-ago quarter.
Recommendation
We maintain our long-term Neutral recommendation on Liberty Media. Currently, the stock holds a short-term Zacks #3 Rank (Hold).
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