Liberty Interactive reports 4% QVC growth; China joint venture approved, set for split-off

Tom Paine

Liberty Interactive today reported results for its 2nd quarter 2012, including those for its principal business, West Chester-based QVC.

QVC's consolidated revenue increased 4% to $2 billion, while operating income increased 7% to $301 million. QVC's US revenue grew 4% to $1.3 billion, while QVC said eCommerce revenue increased 15% to $498 million and grew to 39% from 35% as a percentage of total U.S. revenue. International revenue also grew 4% in the quarter. Liberty Interactive also contains a number of smaller eCommerce businesses.

QVC said it received government approval in July from China to proceed with its joint venture with China National Radio.

Liberty Interactive also confirm it was creating another tracking stock to be called Liberty Ventures, breaking out its holdings in Expedia and other properties from Liberty Interactive, which will then consist of QVC and the smaller eCommerce businesses. Liberty Ventures is expected to begin trading on Friday.

Liberty Interactive also repurchased $257 million of its stock during the quarter. In its current form, Liberty Interactive (NASDAQ:LINTA) was split off from Liberty Media last September. It has a market capitalization of almost $11 billion.

Separately, Liberty Media in reporting its results said a small decrease in revenue was "primarily due to a decrease in revenue at [Berwyn-based] TruePosition which continues to be out of contract with one of its large customers". It also announced it would be spinning off cable movie channel provider Starz into a separate publicly traded company.



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