Qurate Retail, an American media conglomerate, unveiled its third quarter (Q3) 2023 financial results today, revealing a 3% decrease in revenue, totaling $2.5 billion in both US Dollars and constant currency. Despite this, the company saw a remarkable surge in its stock value following the announcement.
At the time of this publication, Qurate Retail Inc stock (QRTEA) has witnessed a surge.
Qurate Retail Inc
Current Price: $0.60
Change : +0.17
Change (%): (40.42%)
Volume: 7.4M
Source: Tomorrow Events Market Data
Notably, Qurate Retail exhibited substantial growth in Adjusted Operating Income Before Depreciation and Amortization (OIBDA), boasting an impressive 35% increase in constant currency. The company reported a diluted Earnings Per Share (EPS) of $0.00, with Adjusted diluted EPS standing at $0.10.
In terms of specific business segments, QxH experienced a 3% decline in revenue, while QVC International saw a 4% increase. When adjusted for constant currency, overall revenue showed a 1% upswing. However, Cornerstone, another division of Qurate Retail, reported a significant 13% drop in revenue.
Corporate headlines include a notable achievement, as the company successfully reduced its revolver balance by $435 million, utilizing operating cash flow and insurance proceeds. Furthermore, all remaining 1.75% exchangeable debentures were either retired or exchanged during Q3 or shortly after quarter-end.
David Rawlinson, the President and CEO of Qurate Retail, expressed optimism about the company’s trajectory, stating, “We are delivering on our Project Athens transformation as planned and have made tangible progress toward building a materially stronger profit and cash flow profile.” Rawlinson highlighted the remarkable achievement of over 50% growth in Adjusted OIBDA, along with sustained gross margin gains in their core video commerce businesses. Additionally, the company demonstrated an increase in free cash flow while successfully mitigating the decline in revenue compared to the first half of the year.
Acknowledging that there is still work to be done, Rawlinson added, “While we have meaningful work still ahead of us, our third quarter results strengthen our confidence in our ability to navigate the current challenged environment and to meet our Project Athens objectives. We reiterate our expectations for a double-digit CAGR on Adjusted OIBDA and free cash flow with stable revenues through 2024 compared to 2022.”
Qurate Retail Inc’s Q3 2023 results exemplify their commitment to strategic transformation and financial resilience, positioning them optimally in the face of challenging market conditions. The company’s robust performance underscores its dedication to meeting the objectives set forth in Project Athens, instilling confidence in stakeholders regarding future growth and stability.
