Strong 2Q for Liberty Media - Analyst Blog


Liberty Media Corp. ( LMCA ) reported solid financial results for the second quarter of 2012, outpacing the Zacks Consensus Estimates. Quarterly GAAP net income was $156 million or $1.27 per share compared with a net income of $89 million or 27 cents per share. However, quarterly earnings per share of $1.27 were significantly above the Zacks Consensus Estimate of 74 cents. Quarterly total revenue of $537 million remains same year over year but surpassed the Zacks Consensus Estimate of $521 million.

In the second quarter of 2012, Liberty Media's adjusted OIBDA (operating income before depreciation and amortization) came in at $126 million, remaining almost same year over year. Quarterly operating income was $101 million, up 7.5% year over year. In the previous quarter, Liberty Media repurchased 1.1 million shares for a total cash consideration of $95.9 million.

During the first half of 2012, Liberty Media generated $131 million of cash from operations compared with $278 million in the prior-year period. Free cash flow in the first half of 2012 was $125 million compared with $272 million in the year-ago period.

At the end of the second quarter of 2012, Liberty Media had $3,716 million of cash and cash equivalents compared with $3,929 million at the end of 2011. Total debt, at the end of the reported quarter, was $543 million compared with $1,295 million at the end of 2011. At the end of the previous quarter, debt-to-capitalization ratio was 0.09 remains flat at the end of 2011.

Starz LLC Segment

Revenue in the second quarter of 2012 was $403 million, remaining same year over year. Adjusted OIBDA decreased 8.5% year over year to $108 million. Operating income was $100 million, showing an yearly decline of 16.7%. At the end of the reported quarter, total subscribers base of Starz increased 9% to 20.7 million while its sister TV channel Encore had 34.2 million subscribers, up 4% year over year.

Major Announcement  

Liberty Media has decided to spin-off its premium pay-TV network Starz LLC into a separate public company. Earlier, the company had announced its plan of considering a tax-free spin-off of its 46% stake in the satellite radio broadcaster SIRIUS XM Radio Inc. ( SIRI ).


We maintain our long-term Neutral recommendation on Liberty Media. Currently, it holds a short-term Zacks #2 Rank (Buy) on the stock.

LIBERTY MDA-LC (LMCA): Free Stock Analysis Report
SIRIUS XM RADIO (SIRI): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: LMCA , SIRI

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