QVC Group, Inc. · NASDAQ:QVCG
QVC — Qurate Retail — Q1 2019 Earnings Presentation
9 slides from QVC's earnings presentation, May 9, 2019
Slide 1: Qurate Retail, Inc. Q1 2019
qu rate RETAIL, INC. Curated Experiences. Infinite Possibilities.” Q1 2019
Slide 2: Safe Harbor and Non-GAAP Measures
Safe Harbor and Non-GAAP Measures This presentation includes certain forward-looking statements herein to reflect any change in QRI’s or QVC’s expectations with within the meaning of the Private Securities Litigation Reform Act regard thereto or any change in events, conditions or of 1995, including
Slide 3: QxH: Leveraging Competitive Strengths to Evolve in Changing Market Landscape
QxH: Leveraging Competitive Strengths to Evolve in Changing Market Landscape MARKET TRENDS STRATEGIC PRIORITIES Shifting Viewership Behaviors Win in Digital • Growth of cord cutting & cord nevers • Leverage TV networks as powerful marketing channel • Decline of traditional TV viewing Launched Beau
Slide 4: QxH Customer Profile
QxH Customer Profile1 TTM March 2019 Existing 50% Existing 87% Reactivated 6% New 7% Reactivated 24% Percentage of Percentage of All Customers Shipped Sales New 26% EXISTING CUSTOMERS Annual Purchases: 28 Items purchased $1.5K Spend 1 Existing customer: Customer who made a purchase in two consecutiv
Slide 5: Revenue & Adjusted OIBDA
Revenue & Adjusted OIBDA Year-on-Year Quarterly Comparative REVENUE1 Q1 Q2 Q3 Q4 FY 2018 Q1 2019 QxH2 -2% -2% 0% 1% -1% -4% QVC International 14% 7% 1% -3% 4% -5% QVC International (Constant Currency) 2% 1% 2% -1% 1% 1% Zulily3 17% 13% 18% 5% 12% -5% Cornerstone -8% -9% -7% -4% -7% -10% QURATE RETAI
Slide 6: Revenue and Adjusted OIBDA Business Segment Contribution
Revenue and Adjusted OIBDA Business Segment Contribution Q1 2019 QxH 60% QxH 74% Revenue Adjusted OIBDA Cornerstone 6% Cornerstone 1% $3.1B Zulily 4% $0.5B Zulily 13% QVC International 21% QVC International 21% $1.8B eCommerce Revenue Note: Percentages exclude intersegment eliminations and unallocat
Slide 7: QxH Category Performance
QxH Category Performance Prior Year Comparative CATEGORY Q1 Q2 Q3 Q4 FY 2018 Q1 2019 Home Apparel Beauty Accessories Electronics Jewelry NOTABLE BRANDS 7
Slide 8: QxH Adjusted OIBDA Margin Year-on-Year Performance
QxH Adjusted OIBDA Margin Year-on-Year Performance Basis Point Change CONTRIBUTING FACTOR Q1 2019 Product Mix Impact1 40 Inventory Management2 (90) Fulfillment3 (70) Commissions4 140 Marketing (30) Other5 (10) TOTAL (20) 1 Includes initial margin, in-period returns, S&H revenue, ASP leverage, freigh
Slide 9: QxH Cumulative Synergies Update
QxH Cumulative Synergies Update Q1 2019 $370 – $400E 2018 2019 $350 - $370E Cumulative Run Rate Cost Synergies Included in Adjusted OIBDA 32 59 Below Adjusted OIBDA 8 8 $260 - $270E 40 67 $165 - $170E One-Time Costs Included in Adjusted OIBDA (4) (4) Below Adjusted OIBDA (51) 0 (55) (4) 23 $40 67 Cu