Qurate Retail(US:QRTEA)2024-05-08 19:21Revenue Performance - Qurate Retail reported a 4% decrease in total revenue for Q1 2024, amounting to $2,342 million, compared to $2,644 million in Q1 2023[4] - QxH revenue declined by 4% to $1,539 million, while QVC International revenue decreased by 3% to $572 million[7] - Total revenue for Q1 2024 was $2,342 million, down 11.42% from $2,644 million in Q1 2023[54] Profitability Metrics - Adjusted OIBDA increased by 25% in constant currency, reaching $259 million, up from $210 million in the same period last year[4] - The company achieved a diluted EPS of $0.00, with an adjusted diluted EPS of $0.04, compared to an adjusted EPS of $(0.05) in Q1 2023[10] - Qurate Retail's Adjusted OIBDA for Q1 2024 was $259 million, compared to $340 million in Q4 2023[41] - QVC's Adjusted OIBDA for Q1 2024 was $260 million, down from $320 million in Q4 2023[48] - Operating income for Q1 2024 was $145 million, down from $176 million in Q1 2023, representing a 17.61% decrease[54] - The company recognized a $326 million non-cash impairment charge related to goodwill in Q4 2023[44] - Qurate Retail reported a net income of $8 million for Q1 2024, a decrease from $33 million in Q1 2023, reflecting a 75.76% decline[54] - Adjusted net income for Q1 2024 was $17 million, compared to a loss of $20 million in Q1 2023[54] Debt and Financial Position - The company successfully repaid $423 million of QVC's 4.85% senior secured notes due April 2024[3] - Total debt for Qurate Retail increased by $14 million to $5,953 million, with cash and cash equivalents decreasing by $19 million to $1,102 million[26] - As of March 31, 2024, QVC's bank credit facility has $1.3 billion drawn with incremental availability of $1.9 billion, net of letters of credit[27] - QVC's leverage ratio was 2.5x at quarter-end, slightly increasing from December 31, 2023, due to certain add backs no longer impacting the calculation[27] - Qurate Retail's consolidated leverage ratio was greater than 3.5x, restricting its ability to make unlimited dividends or other restricted payments[28] - Qurate Retail is in compliance with all debt covenants as of March 31, 2024[29] Asset and Liability Management - The company’s total current assets decreased to $3,386 million in Q1 2024 from $3,682 million in Q4 2023, a decline of 8.04%[53] - Current liabilities decreased to $2,543 million in Q1 2024 from $2,617 million in Q4 2023, a reduction of 2.82%[53] - Total liabilities decreased to $10,630 million in Q1 2024 from $10,879 million in Q4 2023, a decline of 2.29%[53] - Cash and cash equivalents at the end of Q1 2024 were $1,117 million, down from $1,295 million at the end of Q1 2023, a decrease of 13.78%[55] Strategic Initiatives - The company launched the "Age of Possibility" campaign in April 2024, featuring prominent ambassadors to engage its core customer base[3] - Qurate Retail is focused on sustainable future growth through cost reduction and improved product margins, with ongoing transformation initiatives[2] Interest Expenses - The company incurred interest expenses of $117 million in Q1 2024, an increase from $94 million in Q1 2023, reflecting a 24.47% rise[54] Currency Impact - The company uses constant currency financial metrics to assess performance excluding foreign currency fluctuations, particularly for its subsidiaries in the UK, Germany, Italy, and Japan[39]