Revenue Performance - QVC Group's revenue decreased by 6% in Q4 2024 and 5% for the full year, totaling $2.944 billion in Q4 and $10.037 billion for the year[2][4][8]. - QxH revenue declined by 8% in Q4 and 6% for the full year, with lower units shipped contributing to the decrease[2][12]. - QVC International revenue was flat in Q4 and decreased by 2% for the full year, with constant currency results showing no change[2][15]. - Cornerstone revenue decreased by 7% in Q4 and 11% for the full year, reflecting challenges in the home sector[2][18]. - eCommerce revenue for QxH decreased by 6% to $1,314 million in Q4 2024 compared to $1,392 million in Q4 2023[20]. - eCommerce revenue for QVC International increased by 2% to $366 million in Q4 2024, compared to $359 million in Q4 2023[20]. - QVC Group reported a total revenue of $10,037 million for the year ended December 31, 2024, a decrease of 8.0% from $10,915 million in 2023[52]. Operating Performance - The company reported an operating loss of $1.3 billion in Q4 and $809 million for the full year, primarily due to a $1.5 billion non-cash impairment charge related to goodwill and tradenames[2][6][13]. - Adjusted OIBDA decreased by 8% in Q4 and 1% for the full year, amounting to $312 million in Q4 and $1.103 billion for the year[2][4][8]. - QxH reported an operating income margin of (68.3)% in Q4 2024, a significant decline from (8.9)% in Q4 2023[20]. - For the full year 2024, QxH's operating income margin was (15.8)%, down from 3.9% in 2023[23]. - The operating income for QVC Group was a loss of $809 million in 2024, compared to a profit of $590 million in 2023[52]. Financial Position - The company reduced its principal amount of debt by $442 million in 2024, strengthening its balance sheet[2]. - QVC Group's total debt decreased by $86 million in Q4 2024, primarily due to net debt repayment under its bank credit facility[32]. - QVC's leverage ratio was 3.1x at the end of Q4 2024, indicating stable financial leverage[33]. - Long-term debt decreased to $4,101 million in 2024 from $4,698 million in 2023, a reduction of 12.7%[50]. - QVC Group's cash and cash equivalents decreased to $905 million as of December 31, 2024, down from $1,121 million in 2023[50]. - Total current assets fell to $3,299 million in 2024, compared to $3,682 million in 2023, reflecting a decline of 10.4%[50]. Impairment and Charges - The company incurred a non-cash impairment charge of $1.5 billion related to goodwill and tradenames in Q4 2024[21]. - The company incurred a non-cash impairment charge of $1,480 million related to goodwill and tradenames for the year ended December 31, 2024[46]. - Impairment of intangible assets significantly increased to $1,480 million in 2024 from $326 million in 2023[54]. Cash Flow and Investments - Net cash provided by operating activities decreased to $525 million in 2024 from $919 million in 2023[54]. - Net cash used by investing activities was $225 million in 2024, compared to $54 million in 2023[54]. - Net cash used by financing activities improved to $498 million in 2024 from $1,010 million in 2023[54]. - Cash, cash equivalents, and restricted cash at the end of the period were $923 million, down from $1,136 million in 2023[54]. - The effect of foreign currency exchange rates on cash was a loss of $15 million in 2024, compared to a loss of $4 million in 2023[54]. Inventory and Accounts Receivable - QVC Group's inventory increased slightly to $1,061 million in 2024 from $1,044 million in 2023[50]. - The company reported a decrease in accounts receivable by $144 million in 2024, compared to an increase of $36 million in 2023[54]. Strategic Initiatives - QVC Group's new three-year strategy aims to return the business to growth, focusing on live social shopping and consolidating operations[2]. - The company plans to implement restructuring charges of $10 million at QxH and $8 million at QVC International in 2024[45].
Qurate Retail(QRTEB) - 2024 Q4 - Annual Results