Liberty Interactive Corporation (NASDAQ:LINTA) Q4 2014 Earnings Conference Call - Final Transcript

Feb 25, 2015 • 05:15 pm ET

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Liberty Interactive Corporation (NASDAQ:LINTA) Q4 2014 Earnings Conference Call - Final Transcript

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Operator
operator

Good day everyone, and welcome to the Liberty Interactive Corporation Q4 2014 Earnings Call. Today's call is being recorded.

At this time for opening remarks and introductions, I'd like to turn the call over to you. Courtnee Ulrich, Vice President of Investor Relations. Please go ahead ma'am.

Executive
Courtnee Ulrich

(Forward-Looking Statements). And now I'd like to introduce Greg Maffei, Liberty's President and CEO.

Executive
Greg Maffeiby

Thank you, Courtnee, and good afternoon to all of you out there. Today speaking on the call besides myself we will have Liberty Interactive's Chief Financial Officer, Chris Shean; and here with the guest appearance of the home office. QVCs, CEO Mike George.

On to the highlights

Executive
Greg Maffeiby

Liberty Interactive. We're pleased to note that the trading of both our stock, both of LINTA and QVC are above their respective pre-attribution levels which is gratifying.

Looking now briefly at the operating results of some of the units in the group, QVC Group grew U.S. revenue 5% and adjusted OIBDA that 8% in Q4, both good performances in a positive market.

QVC.com revenue as a percent of total revenue, continued its pace upwards and increased to 48%. We achieved positive quarterly adjusted OBITDA at QVC Italy for the first time, a notable result. We received a one-time special dividend from HSN, net pre-tax proceeds of a $146 million of which because we sold an exchangeable debenture. We didn't receive all the proceeds until, we met our down to $146 million.

We're pleased with the actions of HSN and paying a special dividend and announcing an increased buyback target. We repurchased $107 million of QVC, a share is from November 1st, through January 31st.

For the calendar year, this May $785 million in repurchases. When combined with the dividend at Liberty venture or Liberty venture stock which is distributed QVC group holders in October, we return $3.26 billion in value to our shareholders in calendar 2014. and when you look at the cash component with the cash component done at the $1 billion, and the $785 million of repurchases, we are now basically at our target leverage ratio of around 2.5 at QVC.

Going forward, I expect that the repurchases at QVC that will more closely track that free cash flow generation of QVC.

So looking now on Liberty ventures. We ended the year with $2.8 billion in cash and liquid investments. As we've noted previously, we are actively looking for investments. We like the idea of for big game, we think there is less competition for that level and at that level and we like the fact that we've built a larger cash forward, and continue to grow the cash balance and liquid investment balances at Liberty ventures.

Turning to the digital commerce company in their activities. We completed the FTD provide deal. I think that was a strong deal for our shareholders, and we look forward to improving results at FTD.

Commerce Hub acquired Emerson, great line extension for Commerce Hub. His own business continue to perform very

Executive
Chris Shean

Thanks, Greg. Excluding