QVC Group, Inc. · NASDAQ:QVCG
QVC — Qurate Retail — Q2 2019 Earnings Presentation
10 slides from QVC's earnings presentation, Aug 8, 2019
Slide 1: Qurate Retail, Inc. Q2 2019
qu rate RETAIL, INC. Curated Experiences. Infinite Possibilities.” Q2 2019
Slide 2: Safe Harbor and Non-GAAP Measures
Safe Harbor and Non-GAAP Measures This presentation includes certain forward-looking statements change in QRI’s or QVC’s expectations with regard thereto or any within the meaning of the Private Securities Litigation Reform Act change in events, conditions or circumstances on which any such of 1995,
Slide 3: Revenue and Adjusted OIBDA Business Segment Contribution
Revenue and Adjusted OIBDA Business Segment Contribution Q2 2019 3% 7% 1% 12% 20% 21% Revenue Adjusted OIBDA $3.1B $0.5B 76% Cornerstone 60% Zulily QVC International QxH $1.8B eCommerce Revenue Note: Percentages exclude intersegment eliminations and unallocated corporate costs 3
Slide 4: Revenue & Adjusted OIBDA Year-on-Year Quarterly Comparative
Revenue & Adjusted OIBDA Year-on-Year Quarterly Comparative REVENUE1 2018 2019 Q1 Q2 Q3 Q4 FY 2018 Q1 Q2 QxH2 -2% -2% 0% 1% -1% -4% -1% QVC International 14% 7% 1% -3% 4% -5% -2% QVC International (Constant Currency) 2% 1% 2% -1% 1% 1% 1% Zulily3 17% 13% 18% 5% 12% -5% -13% Cornerstone -8% -9% -7% -
Slide 5: QxH Category Performance
QxH Category Performance Prior Year Comparative CATEGORY 2018 2019 Q1 Q2 Q3 Q4 FY 2018 Q1 Q2 Home Apparel Beauty Accessories Electronics Jewelry NOTABLE BRANDS 5
Slide 6: Executing on Product Curation and Digital Priorities
Executing on Product Curation and Digital Priorities $1M+ 3,500+ 80% Sales in First 2 Months New Customers New Customers Ages 25-44 Email Digital-Only YouTube Launch Marketing Instagram May 3, 2019 Podcast YouTube Facebook D3 Social Live Vlogs Design, Development, Amplification through and Discovery
Slide 7: QxH Customer Profile
QxH Customer Profile1 TTM June 2019 Existing 51% Existing 87% Reactivated 6% New 7% Reactivated 22% Percentage of Percentage of All Customers Shipped Sales New 27% EXISTING CUSTOMERS Annual Purchases: 28 Items purchased $1.5K Spend 1 Existing customer: Customer who made a purchase in two consecutive
Slide 8: QxH Adjusted OIBDA Margin Q2 Performance
QxH Adjusted OIBDA Margin Q2 Performance Year-on-Year Basis Point Change CONTRIBUTING FACTOR Q2 2019 Commissions1 130 Product Mix Impact2 5 Warehouse3 (55) Freight (QxH Operated Facilities) (45) Inventory Management4 (25) Marketing (20) Other5 10 TOTAL Flat 1 Includes accounting changes, synergies f
Slide 9: QxH Cumulative Synergies Update
QxH Cumulative Synergies Update Q2 2019 $370 – $400E FY 2018 YTD 2019 $350 - $370E Cumulative Cost Synergies Included in Adjusted OIBDA 32 79 $260 - $270E Below Adjusted OIBDA 8 8 40 87 $165 - $170E One-Time Costs Included in Adjusted OIBDA (4) (7) Below Adjusted OIBDA (51) 0 (55) (7) 23 $40 87 Cumu
Slide 10: Glossary
Glossary On-Air Sales Sales of products that appear on a QxH TV network that calendar day Off-Air Sales Sales of products that did not appear on a QxH TV network that calendar day, including sales of products that have never appeared on air. Off-Air Sales come largely via our digital platforms Digit