Liberty Interactive Corp (NASDAQ:LVNTA) Q1 2019 Earnings Conference Call - Final Transcript

May 10, 2019 • 08:30 am ET


Liberty Interactive Corp (NASDAQ:LVNTA) Q1 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to the Qurate Retail Incorporated, 2019 Q1 Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards we will conduct a question-and-answer session. (Operator Instruction) As a reminder, this conference is being recorded today, May 10th, 2019.

I would now like to turn the conference over to Courtnee Chun, Senior Vice President of Investor Relations. Please go ahead.

Courtnee Chun

Thank you. Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent Forms 10-K and 10-Q filed by our Company and QVC with the SEC. These forward-looking statements speak only as of the date of this call and Qurate Retail expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in Qurate Retail's expectations with regard thereto, or any change in events, conditions or circumstances on which any such statement is based.

On today's call, we will discuss certain non-GAAP financial measures including adjusted OIBDA, adjusted OIBDA margin, adjusted EPS and constant currency. Information regarding the comparable GAAP metrics along with required definitions and reconciliations including preliminary note and schedules one through three can be found in the earnings press release issued today, which is available on our website. With that, we have also published slides to accompany the earnings release. These slides are also available on our website.

Today, speaking on the call we have Qurate Retail, President and CEO, Mike George; Qurate Retail Group CFO, Jeff Davis; Qurate Retail Inc CFO, Mark Carleton and Executive Chairman, Greg Maffei.

Now, I'll turn the call over to Mike George.

Mike George

Thank you, Courtnee, and good morning everyone. In Q1, our performance was disappointing, led by sales declines at QXH and zulily, both of which were down significantly.

Adjusted OIBDA also declined, but at a reduced rate from Q4, as we continue to focus on improving the flow through from revenue to profits. I'll focus my comments on QXH and zulily and Jeff will discuss QVC International and Cornerstone. So starting with QXH; across 30-plus years, our business has gone through multiple evolutions, as the retail and media landscapes change. We're in the midst of another important evolution, and before I dive into the quarterly results, I thought it would be helpful to reiterate, what's changing, what actions we're taking in response, and how to think about our current results in that context.

So what's changing? On the media side, we see the continued growth of cord cutting and cord nevers and the decline in traditional TV viewing, partially offset by the explosion of digital media consumption. On the Commerce side, we see the continued rapid shift to e-commerce and new types of brick and mortar experiences combined with the ease