On November 3, 2023, Qurate Retail Inc (QRTEA, Financial) released its third quarter 2023 financial results. The company reported strong Adjusted OIBDA growth of over 50% and a significant improvement in operating income, despite a 10% decline in total revenue compared to the same period in 2022. The company's CEO, David Rawlinson, expressed confidence in the company's ability to navigate the current challenging environment and meet its Project Athens objectives.
Financial Highlights
Qurate Retail Inc (QRTEA, Financial) reported total revenue of $2.479 billion in Q3 2023, a 10% decrease from $2.744 billion in Q3 2022. Despite the decline in revenue, the company's operating income showed a significant improvement, moving from a loss of $2.607 billion in Q3 2022 to a gain of $151 million in Q3 2023.
The company's Adjusted OIBDA, a key measure of operational strength and performance, increased by 54% to $285 million in Q3 2023, compared to $185 million in the same period in 2022. This growth was reported across all of the company's businesses.
Business Segment Performance
Qurate Retail Inc (QRTEA, Financial) operates through several business segments, including QxH, QVC International, and Cornerstone. QxH reported a 3% decline in revenue, while QVC International saw a 4% increase. Cornerstone, however, experienced a 13% decrease in revenue. Despite these mixed results, all segments reported increases in their Adjusted OIBDA.
Future Outlook
Despite the challenges, Qurate Retail Inc (QRTEA, Financial) remains confident in its ability to meet its Project Athens objectives. The company expects a double-digit compound annual growth rate (CAGR) on Adjusted OIBDA and free cash flow with stable revenues through 2024 compared to 2022.
Financial Position
As of September 30, 2023, Qurate Retail Inc (QRTEA, Financial) reported cash and cash equivalents of $1.099 billion and total debt of $6.154 billion. The company's cash position decreased by $384 million in the third quarter primarily due to net debt repayment under QVC’s bank credit facility, partially offset by cash from operations.
Explore the complete 8-K earnings release (here) from Qurate Retail Inc for further details.
