QVC Group, Inc. · NASDAQ:QVCG
QVC — Qurate Retail — Q4 2022 Earnings Presentation
14 slides from QVC's earnings presentation, Mar 1, 2023
Slide 1: Q4 2022 Earnings Presentation
Q4 2022 Earnings Presentation
Slide 2: Safe Harbor and Non-GAAP Measures
Safe Harbor and Non-GAAP Measures This presentation includes certain forward-looking statements within the about the risks and uncertainties related to their respective businesses which meaning of the Private Securities Litigation Reform Act of 1995, including may affect the statements made in this
Slide 3: Revenue & Adjusted OIBDA: Business Segment Contribution
Revenue & Adjusted OIBDA Business Segment Contribution Q4 2022 10% 7% 47% 19% Revenue $3.5B Adjusted OIBDA $197M (13)% vs 2021 Cornerstone (64)% vs 2021 64% Zulily 74% QVC International QxH (18)% (3)% $2.3B eCommerce Revenue I 64% of Revenue (14)% vs 2021 QURATE RETAIL, INC. 3 Note: Percentages with
Slide 4: Revenue & Adjusted OIBDA Prior Year Quarterly Comparative
Revenue & Adjusted OIBDA Prior Year Quarterly Comparative REVENUE 2021 2022 Q1 Q2 Q3 Q4 FY-21 Q1 Q2 Q3 Q4 FY-22 QxH 8% (1)% (8)% (7)% (3)% (13)% (12)% (8)% (11)% (11)% QVC International 22% 11% (3)% (9)% 4% (13)% (19)% (21)% (18)% (18)% QVC International A 15% 5% (4)% (5)% 2% (7)% (8)% (5)% (4)% (6)
Slide 5: QxH Category Performance
QxH Category Performance Prior-Year Comparative 2021 2022 Q1 Q2 Q3 Q4 FY-21 Q1 Q2 Q3 Q4 FY-22 Home 14% (3)% (17)% (14)% (7)% (16)% (12)% (9)% (13)% (13)% Electronics 16% (23)% (13)% (12)% (10)% (27)% (33)% (11)% (14)% (20)% Apparel (3)% 19% 8% 19% 10% 2% (1)% (2)% (15)% (4)% Beauty (1)% (10)% (6)% 4
Slide 6: QxH Category Mix
QxH Category Mix Category % of Revenue 2% 2% 3% 3% 4% 3% 10% 10% 10% Other 13% 14% 15% Jewelry 9% 12% Accessories 12% 18% Beauty 17% 16% Apparel Electronics 45% Home 41% 41% Q4-20 Q4-21 Q4-22 Fashion Categories: Apparel, Beauty, Accessories and Jewelry Home Categories: Home and Electronics QURATE RE
Slide 7: QxH Customer Profile
QxH Customer Profile Trailing Twelve Months Ended December 2022 Existing 54% Reactivated Existing 89% 6% Reactivated 24% New 5% Percentage of Percentage of All Customers Shipped Sales New 22% Existing Customers Annual Purchases: 29 Items purchased $1.5K Spend New: Never purchased previously Reactiva
Slide 8: QxH Customer Count
QxH Customer Count Last 12 Months Ended (‘000s) 11,602 10,625 10,394 2,568 2,303 2,246 8,873 2,166 3,492 2,790 2,611 1,938 5,532 5,542 5,537 4,769 Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022 Existing New Reactivated New: Never purchased previously Reactivated: Purchased in past, but not in last 12 month
Slide 9: QxH Adjusted OIBDA Margin
QxH Adjusted OIBDA Margin Basis Point Change Year Over Year Fiscal 2022 Q4 Trend Driver Q1 Q2 Q3 Q4 FY Prior Year 18.0% 19.7% 17.9% 14.7% 17.4% Favorable Returns Gross Margin Product Margin1 140 10 (135) (300) (90) Inventory Reduction, Promotions | Shipping & Handling Revenue PY Decommission Lancast
Slide 10: Qurate Retail, Inc. Free Cash Flow
Qurate Retail, Inc. Free Cash Flow US$ Millions Twelve Months Ended December 31 2021 2022 Net Cash Provided (Used) by Operating Activities 1,225 194 Plus: Insurance Proceeds Related to Fixed Assets -- 184 Less: Capital Expenditures (244) (268) Less: Expenditures for Television Distribution Rights (1
Slide 11: QxH Sale and Leaseback Transactions Summary
QxH Sale and Leaseback Transactions Summary → Completed sale and leaseback for Ontario, CA fulfillment center on 6/28/22 • $340 million aggregate consideration • $250 million cash proceeds • $84 million debt forgiveness related to previous lease • $37 million right-of-use asset, offset by $31 millio
Slide 12: QVC, Inc. Headline Financial Covenant Summary
QVC, Inc. Headline Financial Covenant Summary Liberty Interactive, LLC (“LI LLC”) Debt • No material covenants other than liens tests QVC, Inc. Credit Facility • Primary covenant is 4.5x net leverage test (maintenance based) (1) • Inclusive of debt, cash and adjusted EBITDA of QVC, Inc., Corners
Slide 13: Glossary
Glossary Average Daily Reach: Pertains to linear TV broadcasts and is the count of distinct homes that watch at least 20 consecutive seconds within a day. Total Minutes Viewed: Pertains to linear TV broadcasts and is the sum of total daily minutes viewed within a specified time period. Monthly Activ
Slide 14: Qurate Retail, Inc.
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