Liberty Media Misses on Earnings, Revs

Liberty Media Corp. (LMCA) reported disappointing financial results for the third quarter of 2013, with earnings per share of 63 cents lagging the Zacks Consensus Estimate of 68 cents. Quarterly GAAP net income was $76 million compared with $221 million in the year-ago quarter.

The total revenue was $1,110 million compared with a mere $154 million in the prior-year quarter but fell below the Zacks Consensus Estimate of $1,130 million.

The top-line upswing can be attributed to significant contribution from Liberty Medias majority controlling stake in SIRIUS XM Radio Inc. (SIRI). In addition to SIRIUS XM, the company has stakes in both Live Nation Entertainment Inc. (LYV) and Charter Communications Inc. (CHTR). Liberty Media currently has a Zacks Rank #3 (Hold).

In the second quarter of 2013, Liberty Medias adjusted operating income before depreciation and amortization came in at $379 million compared with a meager $30 million in the year-ago quarter. Quarterly operating income was $248 million as against $10 million in the prior-year quarter.

During the first nine months of 2013, Liberty Media generated $889 million of cash from operations compared with $53 million in the prior-year period. Free cash flow in the reported period was $757 million as against $48 million in the year-ago period.

At the end of the first nine months of 2013, Liberty Media had $2,446 million of cash and cash equivalents against $2,745 million at the end of 2012. The total debt, at the end of the reported quarter, was $4,881 million compared with $540 million at the end of 2012. At the end of the third quarter, the debt-to-capitalization ratio was 0.15 compared with 0.08 at the end of 2012.

Zacks Investment Research

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Liberty Media Misses on Earnings, Revs