Markets

A Mixed Bag for Liberty Media - Analyst Blog

Liberty Media Corp. ( LMCA ) reported mixed financial results for the first quarter of 2012. Quarterly total revenue dropped substantially 55% to $440 million, way behind the Zacks Consensus Estimate of $473 million. Quarterly GAAP net income was $137 million or $1.10 per share compared with a net income of $331 million or $4.30 per share. However, quarterly earnings per share of $1.10 were significantly higher than the Zacks Consensus Estimate of 67 cents.

In the first quarter of 2012, Liberty Media's adjusted OIBDA (operating income before depreciation and amortization) came in at $110 million, down 77.3% year over year. Quarterly operating income was $89 million, down 80.6% year over year. In the previous quarter, Liberty Media has repurchased 1.4 million shares for a total cash consideration of $120.1 million.

During the first quarter of 2012, Liberty Media generated $94 million of cash from operations compared with $265 million in the prior-year quarter. Free cash flow in the reported quarter was $92 million compared with $262 million in the year-ago quarter. At the end of the first quarter of 2012, Liberty Media had $3,746 million of cash and cash equivalents compared with $3,929 million at the end of 2011. Total debt, at the end of the first quarter of 2012, was $544 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 compared with flat at the end of 2011.

Starz LLC Segment

Revenue in the first quarter of 2012 was $405 million, up 3.6% year over year. However, adjusted OIBDA decreased 3.2% year over year to $127 million. Operating income was $120 million, down 3.2% year over year. At the end of the reported quarter, total subscribers base of Starz increased 7% to 20.1 million.

Major Announcement

Liberty Media declared that it has entered into a forward purchase contract for 302 million shares of SIRIUS XM Radio Inc. ( SIRI ). The forward price is set at $2.15 per share or a total of $650 million. Settlement of this forward contract will raise Liberty Media's stake in SIRIUS XM Radio to 45.2% from the existing 40%.

LIBERTY MDA-LC (LMCA): Free Stock Analysis Report

SIRIUS XM RADIO (SIRI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

SIRI

Other Topics

Stocks