Liberty Interactive Corporation Reports Second Quarter 2013 Financial Results

  Liberty Interactive Corporation Reports Second Quarter 2013 Financial
  Results

Business Wire

ENGLEWOOD, Colo. -- August 6, 2013

Liberty Interactive Corporation (“Liberty”) (Nasdaq: LINTA, LINTB, LVNTA,
LVNTB) today reported second quarter 2013 results. Highlights include^(1):

Attributed to Liberty Interactive Group

  *Grew QVC US revenue by 3% and adjusted OIBDA by 2%

       *QVC US operating income decreased by 3%
       *QVC.com revenue as a percent of total US revenue increased to 42%, a
         3 point increase
       *QVC US mobile penetration was 28% of QVC.com orders

  *eCommerce group grew revenue by 12% and adjusted OIBDA by 13%

       *Operating income decreased by 100%

  *Repurchased $220 million of LINTA shares from May 1 to July 31

Attributed to Liberty Ventures Group

  *TripAdvisor posted strong Q2 results
  *Liberty Ventures stock posted new all-time high of $94.86 on July 25

“QVC posted solid results in the US, while the international markets proved
more challenging and were negatively impacted by the currency fluctuations in
Japan and the UK. Our eCommerce companies built on their strong Q1 performance
with continued revenue and adjusted OIBDA growth in Q2,” stated Greg Maffei,
Liberty President and CEO. “We repurchased $220 million of Liberty Interactive
stock from May 1 to July 31, and $551 million year to date. Attributable to
Liberty Ventures, TripAdvisor posted strong results as they successfully
rolled out their hotel metasearch display.”

LIBERTY INTERACTIVE GROUP - Liberty Interactive Group's revenue increased 1%
to $2.4 billion in the second quarter, adjusted OIBDA was relatively flat at
$455 million and operating income decreased 8% to $268 million. The increase
in revenue was due to favorable results at the eCommerce companies driven by
increased marketing efforts driving additional traffic, greater conversion
resulting from investments in site optimization, increased shipping charges,
and broader inventory offerings.

QVC

QVC's consolidated net revenue decreased 1% in the second quarter to $2.0
billion. During the same period, adjusted OIBDA decreased 1% to $434 million
and operating income decreased 5% to $285 million. On a constant currency
basis, consolidated net revenue increased 2% and adjusted OIBDA grew 2% in the
second quarter as US denominated results were negatively impacted by exchange
rate fluctuations, primarily the strengthening of the US Dollar against the
Japanese Yen which decreased 19%.

“Second quarter results showed growth in new customers and continued strength
in our digital platforms, despite a cautious consumer spending environment,”
said Mike George, QVC President and CEO. “eCommerce has grown to represent 37%
of QVC's global revenues, and of that, 30% of our eCommerce orders are from
mobile devices. QVC has grown to become one of the world's largest mobile
commerce retailers, which is the result of how we're working to change the way
the world shops by reimagining shopping, entertainment and social as one.”

QVC's US revenue increased 3% to $1.3 billion in the second quarter primarily
as a result of strength in the beauty and home categories. Average selling
price per unit (“ASP”) increased 3% from $54.84 to $56.39, while units sold
declined 1% compared to the prior year second quarter. Returns as a percent of
gross product revenue improved 72 basis points due primarily to changes in
prior period estimates based on actual experience. In the same period, QVC
US's eCommerce revenue increased 10% to $550 million and grew to 42% from 39%
as a percentage of total QVC US net revenue. Adjusted OIBDA increased 2% to
$320 million and adjusted OIBDA margin^(2) decreased 22 basis points in the
second quarter. Adjusted OIBDA margin decreased primarily due to higher
inventory obsolescence and personnel costs as well as lower credit card
income. These unfavorable drivers were partially offset by improved product
margins.

QVC's international revenue in US Dollars decreased 6% in the second quarter
to $649 million. The second quarter results included the negative impact of
the strengthening of the US Dollar against the Japanese Yen, and to a lesser
extent, the UK Pound Sterling, which were somewhat offset by the weakening of
the US Dollar against the Euro. Adjusted OIBDA decreased 7% to $114 million
and adjusted OIBDA margin decreased 15 basis points in the second quarter. In
constant currency, QVC's international revenue and adjusted OIBDA increased 2%
and 4%, respectively.

QVC Japan's revenue grew 3% in local currency in the second quarter primarily
due to growth in apparel. QVC Japan's ASP in local currency decreased 3%, but
units sold increased 9% in the second quarter. QVC Japan's second quarter
returns as a percent of gross product revenue in local currency increased 160
basis points due primarily to the increased apparel mix that returns at a
higher rate as well as higher return rates in accessories, apparel and
jewelry. QVC Japan's adjusted OIBDA in local currency increased 1% and
adjusted OIBDA margin decreased 66 basis points in the second quarter. The
decrease in adjusted OIBDA margin was primarily due to lower product margins
driven, in part by, additional anniversary promotional offerings; a cost step
up in one of the TV carriage contracts; and higher operating costs associated
with the new headquarters.

In US Dollars, QVC Japan's revenue and adjusted OIBDA decreased 16% and 19%,
respectively. The decrease in revenue and adjusted OIBDA during the quarter
was driven by a 19% decline in the Japanese Yen which created significant
pressure on US Dollar denominated results.

QVC Germany's revenue decreased 3% in local currency in the second quarter.
QVC Germany's ASP in local currency remained flat, while units sold increased
5% in the second quarter. The increase in units sold was primarily due to
growth in apparel and accessories. This was more than offset by QVC Germany's
second quarter return rate as a percent of gross product revenue in local
currency that increased 524 basis points from the prior year due primarily to
changes in prior period estimates based on actual experience, the greater mix
of apparel that returns at a higher rate as well as higher returns in almost
all categories. QVC Germany's adjusted OIBDA in local currency decreased 14%
and adjusted OIBDA margin decreased 166 basis points for the second quarter.
Adjusted OIBDA margin decreased primarily due to higher inventory
obsolescence, higher freight costs due to the greater returns processing and
higher personnel costs. These unfavorable drivers were partially offset by
higher product margins primarily as a result of the increased mix of apparel.

QVC UK's revenue grew 2% in local currency in the second quarter primarily due
to sales in the home and beauty categories. QVC UK's ASP in local currency
increased 5%, while units sold decreased 3% in the second quarter. QVC UK's
second quarter return rate as a percent of gross product revenue in local
currency decreased 34 basis points primarily due to the increase in the beauty
and home product mix that typically return at lower rates. UK's adjusted OIBDA
in local currency increased 29% and adjusted OIBDA margin increased 353 basis
points in the second quarter. The increase in adjusted OIBDA margin was
primarily due to lease cancellation costs and duplicate overhead costs that
were incurred in the prior year related to the move to the UK's new
headquarters and improved product margins.

QVC Italy's revenue increased 59% in local currency in the second quarter. QVC
Italy's sales were primarily from the cooking and dining, beauty and apparel
product categories. QVC Italy's ASP in local currency decreased 2%, but units
sold increased 64% in the second quarter. In the same period, the adjusted
OIBDA deficit in local currency improved by 51%.

CNR Home Shopping Co., Ltd. ("CNRS"), QVC's joint venture in China,
experienced a revenue increase of 42% in local currency in the second quarter.
In the same period, CNRS' adjusted OIBDA deficit improved by 9%. This joint
venture is being accounted for as an equity method investment.

QVC's outstanding bank and bond debt was $3.8 billion at June 30, 2013, an
increase of $406 million since December 31, 2012. On April 17, 2013, QVC
completed the redemption of the remaining $376 million principal amount of its
7.125% Senior Secured Notes due 2017, fully retiring these notes.

eCommerce Businesses

In the aggregate, Liberty Interactive Group's eCommerce businesses increased
revenue 12% to $439 million for the second quarter. Adjusted OIBDA increased
13% to $26 million and operating income decreased 100% to a loss of $2
million. The increase in revenue and adjusted OIBDA were the result of
increased marketing efforts driving additional traffic, greater conversion
resulting in site optimization, increased shipping charges, and broader
inventory offerings partially offset by the shift in the Easter holiday
falling during the first quarter of 2013 (which typically is a second quarter
holiday). The decrease in operating income was due to greater amortization and
depreciation and stock compensation expense during the quarter.

Share Repurchases

From May 1, 2013 through July 31, 2013, Liberty repurchased approximately 9.6
million Series A Liberty Interactive shares (Nasdaq: LINTA) at an average cost
per share of $22.77 for total cash consideration of $219.6 million. Since the
creation of the Liberty Interactive stock in May 2006, Liberty has repurchased
approximately 206.5 million shares at an average cost per share of $19.33 for
aggregate cash consideration of $4.0 billion. These repurchases represent
approximately  29.4% of the shares outstanding at the time of creation of the
Liberty Interactive stock. All repurchases up to August 9, 2012, the date on
which the Liberty Interactive stock was recapitalized to create the Liberty
Ventures stock, were comprised of shares of the combined stocks. The total
remaining repurchase authorization for Liberty Interactive Group stock is
approximately $704 million.

Liberty Interactive Group holds controlling interests in companies that are
engaged in digital commerce, including QVC, Provide Commerce, Backcountry.com,
Bodybuilding.com, Celebrate Interactive, CommerceHub, and also owns an
interest in HSN.

LIBERTY VENTURES GROUP - As of June30, 2013, the fair value of the equity
method securities and AFS securities attributed to the Liberty Ventures Group
was $1,767 million and $917 million, respectively. When compared to March 31,
2013, the fair value of Liberty Ventures Group's equity method securities
decreased 2%. The Liberty Ventures Group's AFS securities balance decreased
52% primarily due to sales of certain AFS securities during the second
quarter. Total outstanding principal of debt attributed to Liberty Ventures
Group decreased by $285 million as a result of debt repayments in excess of
borrowings.

Share Repurchases

There were no repurchases of Liberty Ventures Group stock (Nasdaq: LVNTA) from
May 1, 2013 through July 31, 2013. The Liberty Ventures Group does not have an
outstanding stock repurchase authorization at this time.

The businesses and assets attributed to the Liberty Ventures Group are all of
Liberty's businesses and assets other than those attributed to the Liberty
Interactive Group and include its subsidiary TripAdvisor, its interest in
Expedia, and minority interests in Time Warner and Time Warner Cable.
TripAdvisor is a separate publicly traded company and additional information
about TripAdvisor can be obtained through its website and filings with the
Securities and Exchange Commission.

FOOTNOTES

         Liberty's President and CEO, Greg Maffei, will discuss these
         highlights and other matters in Liberty's earnings conference call
1)    which will begin at 1:00 p.m. (ET) on August 6, 2013. For information
         regarding how to access the call, please see “Important Notice” later
         in this document.
         For a definition of adjusted OIBDA and applicable reconciliations and
2)       a definition of adjusted OIBDA margin, see the accompanying
         schedules.
         


LIBERTY INTERACTIVE GROUP FINANCIAL METRICS - QUARTER

(amounts in millions)     2Q12              2Q13             % Change
Revenue
QVC
US                           $    1,280           $   1,312           3     %
International                694                 649                (6    )%
Total QVC Revenue            1,974               $   1,961          (1    )%
eCommerce businesses         391                 439                12    %
Total Liberty
Interactive Group            $    2,365          $   2,400          1     %
Revenue
                                                                      
Adjusted OIBDA
QVC
US                           $    315             $   320             2     %
International                123                 114                (7    )%
Total QVC Adjusted           438                 434                (1    )%
OIBDA
eCommerce businesses         23                   26                  13    %
Corporate and other          (6          )        (5         )        17    %
Total Liberty
Interactive Group            $    455            $   455            —     %
Adjusted OIBDA
                                                                      
Operating Income
QVC
US                           $    214             $   207             (3    )%
International                87                  78                 (10   )%
Total QVC Operating          301                 285                (5    )%
Income
eCommerce businesses         (1          )        (2         )        (100  )%
Corporate and other          (10         )        (15        )        (50   )%
Total Liberty
Interactive Group            $    290            $   268            (8    )%
Operating Income
                                                                      
                                                          
(amounts in millions)
                                                                      
LINT Shares                  7/31/2012            7/31/2013
Outstanding
Outstanding A and B          544                  520
shares
                                                                      
                                                          
(amounts in millions)
                             Quarter ended        Quarter ended
LINTA and LINTB Basic        6/30/2012((1))       6/30/2013
and Diluted Shares
Basic Weighted Average
Shares Outstanding           553                  523
(“WASO”)
Potentially dilutive         9                   8          
Shares
Diluted WASO                 562                 531        
                                                                      

          Represents the basic and diluted WASO for Liberty Interactive
(1)    Corporation prior to the recapitalization of Liberty Interactive
          Corporation into the Liberty Interactive Group and Liberty Ventures
          Group tracking stocks on August 9, 2012.


QVC OPERATING METRICS - QUARTER
                                                           
(amounts in millions
except average sale price        2Q12              2Q13              % Change
amounts)
QVC - Consolidated^(1)
Revenue                          $  1,974          $  1,961          (1    )%
Adjusted OIBDA                   $  438            $  434            (1    )%
Adjusted OIBDA margin            22.19    %        22.13    %        (6) bps
                                                                     
eCommerce and Mobile
Metrics
eCommerce $ of total             $  662            $  725            10    %
revenue
eCommerce % of total             33.54    %        36.97    %        343 bps
revenue
                                                                     
Mobile % of total             20.96    %     29.68    %     872 bps
eCommerce^(2)
                                                         
QVC - US^(1)
Revenue                          $  1,280          $  1,312          3     %
Adjusted OIBDA                   $  315            $  320            2     %
Adjusted OIBDA margin            24.61    %        24.39    %        (22) bps
Average sale price (ASP) $       54.84             56.39             3     %
Units sold                       25.59             25.36             (1    )%
Return rate                      19.61    %        18.89    %        72 bps
                                                                     
eCommerce and Mobile
Metrics
eCommerce $ of US revenue        $  498            $  550            10    %
eCommerce % of US revenue        38.91    %        41.92    %        301 bps
                                                                     
Mobile % of US                18.11    %     28.15    %     1,004 bps
eCommerce^(2)
                                                         
QVC - Japan^(1)
Revenue                          $  310            $  260            (16   )%
Adjusted OIBDA                   $  70             $  57             (19   )%
Adjusted OIBDA margin            22.58    %        21.92    %        (66) bps
Average sale price (ASP) ¥       6,375.77          6,191.41          (3    )%
Units sold                    4.35          4.73          9     %
                                                         
QVC - Germany^(1)
Revenue                          $  210            $  207            (1    )%
Adjusted OIBDA                   $  39             $  35             (10   )%
Adjusted OIBDA margin            18.57    %        16.91    %        (166) bps
Average sale price (ASP) €       35.31             35.16             —     %
Units sold                    5.92          6.22          5     %
                                                         
QVC - UK^(1)
Revenue                          $  156            $  153            (2    )%
Adjusted OIBDA                   $  21             $  26             24    %
Adjusted OIBDA margin            13.46    %        16.99    %        353 bps
Average sale price (ASP) £       27.90             29.26             5     %
Units sold                    3.79          3.68          (3    )%
                                                         
QVC - Italy^(1)
Revenue                          $  18             $  29             61    %
Adjusted OIBDA                   $  (7    )        $  (4    )        43    %
Adjusted OIBDA margin            (38.89   )%       (13.79   )%       2,510 bps
Average sale price (ASP) €       32.71             32.18             (2    )%
Units sold                       0.47              0.77              64    %

(1)    Revenue change, adjusted OIBDA change and eCommerce and Mobile
          Metrics calculated in US Dollars, not local currency.
(2)       Based on gross US Dollar orders.

NOTES

Unless otherwise noted, the foregoing discussion compares financial
information for the three months ended June30, 2013 to the same period in
2012.

The following financial information with respect to Liberty's equity
affiliates and available for sale securities is intended to supplement
Liberty's consolidated statements of operations which are included in its Form
10-Q.

Fair Value of Public Holdings                              
                                                                   
(amounts in millions)                            3/31/2013         6/30/2013
HSN^(1)                                          $ 1,098          $  1,075
Total Attributed Liberty Interactive Group       $ 1,098          $  1,075
                                                                   
Expedia^(2)                                      $ 1,385           $  1,388
Interval Leisure Group and Tree.com^(3)          413               379
Other Public Holdings^(4)                        1,905            917
Total Attributed Liberty Ventures Group          $ 3,703          $  2,684
                                                                      

          Represents fair value of Liberty Interactive Group's investment in
          HSN. In accordance with GAAP, Liberty Interactive Group accounts for
(1)    this investment using the equity method of accounting and includes
          this investment in its attributed balance sheet at its historical
          carrying value which aggregated $261 million and $270 million at
          March 31, 2013 and June 30, 2013, respectively.
          Represents fair value of Liberty Ventures Group's investment in
          Expedia. In accordance with GAAP, Liberty Ventures Group accounts
(2)       for this investment using the equity method of accounting and
          includes this investment in its attributed balance sheet at its
          historical carrying value which aggregated $430 million and $438
          million at March 31, 2013 and June 30, 2013, respectively.
          Represents fair value of Liberty Ventures Group's investments. In
          accordance with GAAP, Liberty Ventures Group accounts for these
(3)       investments using the equity method of accounting and includes these
          investments in its attributed balance sheet at their historical
          carrying values which aggregated $93 million and $95 million at
          March 31, 2013 and June 30, 2013, respectively.
(4)       Represents Liberty Ventures Group's other public holdings which are
          accounted for at fair value.

Cash and Debt

The following presentation is provided to separately identify cash and liquid
investments and debt information.

(amounts in millions)                           3/31/2013     6/30/2013
Cash and Liquid Investments Attributable to:
Liberty Interactive Group                          $ 587             $ 591
Liberty Ventures Group^(1)(2)(3)                   1,724            1,809   
Total Liberty Consolidated Cash and Liquid         $ 2,311          $ 2,400 
Investments
                                                                     
Less:
Short-term marketable securities - Liberty         $ 473             $ 508
Ventures Group
Long-term marketable securities - Liberty          468              444     
Ventures Group
Total Liberty Consolidated Cash (GAAP)             $ 1,370          $ 1,448 
                                                                     
Debt:
Senior notes and debentures^(4)                    $ 1,032           $ 792
QVC senior notes^(4)                               3,195             2,819
QVC bank credit facility                           328               990
Other                                              131              138     
Total Attributed Liberty Interactive Group         $ 4,686           $ 4,739
Debt
Unamortized discount                               (15     )         (15     )
Total Attributed Liberty Interactive Group         $ 4,671          $ 4,724 
Debt (GAAP)
                                                                     
Senior exchangeable debentures^(5)                 $ 2,425           $ 2,146
TripAdvisor debt facilities                        391              385     
Total Attributed Liberty Ventures Group Debt       $ 2,816           $ 2,531
Fair market value adjustment                       388              (267    )
Total Attributed Liberty Ventures Group Debt       $ 3,204          $ 2,264 
(GAAP)
                                                                    
Total Liberty Interactive Corporation Debt         $ 7,875          $ 6,988 
(GAAP)

            Includes $473 million and $508 million of short-term marketable
(1)     securities with an original maturity greater than 90 days as of
            March 31, 2013 and June 30, 2013, respectively.
            Includes $468 million and $444 million of marketable securities
            with an original maturity greater than one year as of March 31,
(2)         2013 and June 30, 2013, respectively, which are reflected in
            investments in available-for-sale securities in Liberty Ventures
            Group's condensed attributed balance sheet.
            Includes $594 million and $616 million of cash and liquid
(3)         investments held at TripAdvisor as of March 31, 2013 and June 30,
            2013, respectively.
(4)         Face amount of Senior Notes and Debentures with no reduction for
            the unamortized discount.
(5)         Face amount of Senior Exchangeable Debentures with no reduction
            for the fair market value adjustment.
            

Total cash and liquid investments attributed to the Liberty Interactive Group
remained relatively flat during the second quarter. Cash flows from operations
were offset by capital expenditures and stock repurchases. Total debt
attributed to the Liberty Interactive Group increased by $53 million,
primarily due to debt restructuring during the quarter, resulting in increased
borrowings on the QVC bank credit facility, partially offset by repayments on
QVC senior notes and debentures and repayment of the 5.7% senior notes held by
Liberty Interactive.

Total cash and liquid investments attributed to the Liberty Ventures Group
increased $85 million, primarily due to cash proceeds from dispositions, debt
issued during the quarter and tax payments from Liberty Interactive Group.
These cash inflows were partially offset by debt repayments and stock
repurchases during the quarter. Included in the second quarter total cash and
liquid investments attributed to the Liberty Ventures Group is $616 million
held at TripAdvisor, which is comprised of $200 million of cash, $196 million
of short-term marketable securities and $220 million of long-term marketable
securities. Although TripAdvisor is a consolidated subsidiary, they are a
separate public company with a significant noncontrolling interest, therefore
Liberty may not have ready access to those cash and liquid investments. Total
debt outstanding attributed to the Liberty Ventures Group decreased by $285
million from the first quarter to the second quarter, primarily due to
repayments made on senior exchangeable debentures.

Important Notice: Liberty (Nasdaq: LINTA, LINTB, LVNTA, LVNTB) President and
CEO, Greg Maffei will discuss Liberty's earnings release in a conference call
which will begin at 1:00 p.m. (ET) on August 6, 2013. The call can be accessed
by dialing (888) 312-3051 or (719) 785-1748 at least 10 minutes prior to the
start time. Replays of the conference call can be accessed until 1:00 p.m.
(ET) on August 13, 2013, by dialing (888) 203-1112 or (719) 457-0820 plus the
passcode 9911968. The call will also be broadcast live across the Internet and
archived on our website. To access the webcast go to
http://www.libertyinteractive.com/events. Links to this press release will
also be available on Liberty's website.

This press release includes certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, including
statements about business strategies, market potential, future financial
prospects, expansion of QVC's international operations, new service and
product offerings, QVC’s mobile commerce platform, QVC's social media
platform, interface upgrades at TripAdvisor, the continuation of our stock
repurchase program, and other matters that are not historical facts. These
forward-looking statements involve many risks and uncertainties that could
cause actual results to differ materially from those expressed or implied by
such statements, including, without limitation, possible changes in market
acceptance of new products or services, competitive issues, regulatory matters
affecting our businesses, continued access to capital on terms acceptable to
Liberty Interactive and market conditions conducive to stock repurchases.
These forward-looking statements speak only as of the date of this
presentation, and Liberty Interactive expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any forward-looking
statement contained herein to reflect any change in Liberty Interactive's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based. Please refer to the
publicly filed documents of Liberty Interactive, including the most recent
Forms 10-K and 10-Q, for additional information about Liberty Interactive and
about the risks and uncertainties related to Liberty Interactive's business
which may affect the statements made in this presentation.

SUPPLEMENTAL INFORMATION

As a supplement to Liberty's consolidated statements of operations, which are
included in its Form 10-Q, the following is a presentation of quarterly
information and operating metrics on a stand-alone basis for the largest
business owned by Liberty (QVC) at June30, 2013, which Liberty has identified
as a reportable segment.

Please see below for the definition of adjusted OIBDA and a discussion of why
management believes the presentation of adjusted OIBDA for QVC provides useful
information for investors. Schedule 2 to this press release provides a
reconciliation of adjusted OIBDA for each identified reportable segment to
that segment's operating income for the same period, as determined under GAAP.

QUARTERLY SUMMARY

(amounts in      2Q12          3Q12         4Q12          1Q13          2Q13
millions)
Liberty
Interactive
Group
QVC
Revenue - US        $ 1,280           $ 1,237         $ 1,828           $ 1,297           $ 1,312
Revenue -           694              681            864              677              649     
International
Revenue -           $ 1,974          $ 1,918        $ 2,692          $ 1,974          $ 1,961 
Total
Adjusted            315               278             429               291               320
OIBDA - US
Adjusted
OIBDA -             123              119            174              113              114     
International
Adjusted            $ 438            $ 397          $ 603            $ 404            $ 434   
OIBDA - Total
Operating           214               173             312               180               207
income - US
Operating
income -            87               87             137              80               78      
International
Operating
income -            $ 301            $ 260          $ 449            $ 260            $ 285   
Total
Gross margin        37.2    %         36.1    %       34.7    %         36.1    %         37.3    %
- US
Gross margin
-                   38.1    %         37.4    %       37.1    %         37.5    %         37.8    %
International
                                                                                                  

NON-GAAP FINANCIAL MEASURES

This press release includes a presentation of adjusted OIBDA, which is a
non-GAAP financial measure, for Liberty, QVC (and certain of its
subsidiaries), and the eCommerce businesses together with a reconciliation to
that entity's operating income, as determined under GAAP. Liberty defines
adjusted OIBDA as revenue less cost of sales, operating expenses, and selling,
general and administrative expenses, excluding all stock based compensation,
and excludes from that definition depreciation and amortization and
restructuring and impairment charges that are included in the measurement of
operating income pursuant to GAAP. Further, this press release includes
adjusted OIBDA margin which is also a non-GAAP financial measure. Liberty
defines adjusted OIBDA margin as adjusted OIBDA divided by revenue.

Liberty believes adjusted OIBDA is an important indicator of the operational
strength and performance of its businesses, including each business' ability
to service debt and fund capital expenditures. In addition, this measure
allows management to view operating results and perform analytical comparisons
and benchmarking between businesses and identify strategies to improve
performance. Because adjusted OIBDA is used as a measure of operating
performance, Liberty views operating income as the most directly comparable
GAAP measure. Adjusted OIBDA is not meant to replace or supersede operating
income or any other GAAP measure, but rather to supplement such GAAP measures
in order to present investors with the same information that Liberty's
management considers in assessing the results of operations and performance of
its assets. Please see the attached schedules for applicable reconciliations.

SCHEDULE 1

The following table provides a reconciliation of Liberty Interactive Group's
adjusted OIBDA to its operating income calculated in accordance with GAAP for
the three months ended June 30, 2012, September 30, 2012, December 31, 2012,
March 31, 2013 and June 30, 2013, respectively.

QUARTERLY SUMMARY

(amounts in     2Q12        3Q12        4Q12        1Q13        2Q13
millions)
Liberty
Interactive
Group
Adjusted           $ 455           $ 397           $ 626           $ 437           455
OIBDA
Depreciation
and                (147  )         (147  )         (159  )         (153  )         (158  )
amortization
Stock
compensation       (18   )         (18   )         (32   )         (24   )         (29   )
expense
Impairment
of                 —              (39   )         (53   )         —              —     
intangible
assets
Operating          $ 290          $ 193          $ 382          $ 260          $ 268 
Income
                                                                                         

SCHEDULE 2

The following table provides a reconciliation of adjusted OIBDA for QVC (and
certain of its subsidiaries) and the eCommerce businesses to that entity or
such businesses' operating income (loss) calculated in accordance with GAAP
for the three months ended June 30, 2012, September 30, 2012, December 31,
2012, March 31, 2013 and June 30, 2013, respectively.

QUARTERLY SUMMARY

(amounts in      2Q12        3Q12        4Q12        1Q13        2Q13
millions)
Liberty
Interactive
Group
QVC Adjusted
OIBDA
QVC US              $ 315           $ 278           $ 429           $ 291           $ 320
                                                                                    
QVC Japan           70              67              79              54              57
QVC Germany         39              36              58              43              35
QVC UK              21              21              42              19              26
QVC Italy           (7    )         (5    )         (5    )         (3    )         (4    )
QVC
International       $ 123          $ 119          $ 174          $ 113          $ 114 
adjusted
OIBDA
                                                                                    
Consolidated
QVC adjusted        438             397             603             404             434
OIBDA
Depreciation
and                 (129  )         (129  )         (141  )         (134  )         (140  )
amortization
Stock               (8    )         (8    )         (13   )         (10   )         (9    )
compensation
Operating           $ 301          $ 260          $ 449          $ 260          $ 285 
Income
                                                                                    
eCommerce
Businesses
Adjusted            23              4               35              39              26
OIBDA
Depreciation
and                 (16   )         (18   )         (19   )         (18   )         (18   )
amortization
Stock               (8    )         (3    )         (2    )         (2    )         (10   )
compensation
Impairment of
intangible          —              (39   )         (53   )         —              —     
assets
Operating           $ (1  )         $ (56 )         $ (39 )         $ 19           $ (2  )
Income (Loss)
                                                                                          


LIBERTY INTERACTIVE CORPORATION
BALANCE SHEET INFORMATION
June 30, 2013 - (unaudited)

                      Attributed                                     
                         Interactive    Ventures       Inter-group          Consolidated
                         Group             Group         Eliminations        Liberty
                         amounts in millions
Assets
Current assets:
Cash and cash            $   591           857            —                    1,448
equivalents
Trade and other          731               178            —                    909
receivables, net
Inventory, net           1,129             —              —                    1,129
Short-term
marketable               —                 508            —                    508
securities
Other current            238               28            (151         )       115
assets
Total current            2,689             1,571         (151         )       4,109
assets
Investments in
available-for-sale
securities and           4                 1,361                               1,365
other cost
investments
Investments in
affiliates,
accounted for            322               561            —                    883
using the equity
method
Property and             1,156             19             —                    1,175
equipment, net
Intangible assets
not subject to           8,358             5,517          —                    13,875
amortization
Intangible assets
subject to               1,746             1,033          —                    2,779
amortization, net
Other assets, at
cost, net of             84                15            —                   99
accumulated
amortization
Total assets             $   14,359        10,077        (151         )       24,285
                                                                               
Liabilities and
Equity
Current
liabilities:
Intergroup Payable       $   63            (63      )     —                    —
(receivable)
Accounts payable         533               26             —                    559
Accrued                  682               116            —                    798
liabilities
Current portion of       23                1,006          —                    1,029
debt
Current deferred         5                 987            (151         )       841
tax liabilities
Other current            159               47            —                   206
liabilities
Total current            1,465             2,119         (151         )       3,433
liabilities
Long-term debt           4,701             1,258          —                    5,959
Deferred income          1,194             1,795          —                    2,989
tax liabilities
Other liabilities        205               34            —                   239
Total liabilities        7,565             5,206         (151         )       12,620
Equity/Attributed
net assets               6,664             479            —                    7,143
(liabilities)
Noncontrolling
interests in             130               4,392         —                   4,522
equity of
subsidiaries
Total liabilities        $   14,359        10,077        (151         )       24,285
and equity
                                                                               


LIBERTY INTERACTIVE CORPORATION
STATEMENT OF OPERATIONS INFORMATION
Three months ended June 30, 2013 - (unaudited)

                         Attributed                       
                            Interactive      Ventures          Consolidated
                            Group              Group            Liberty      
                            amounts in millions
Revenue:
Net retail sales            $   2,400           —                 2,400
Other revenue               —                  247              247          
Total revenue               2,400              247              2,647        
                                                                               
Operating costs and
expenses:
Cost of sales               1,521               —                 1,521
Operating, including
stock-based                 207                 36                243
compensation
Selling, general and
administrative,
including stock-based       246                 116               362

compensation
Depreciation and            158                79               237          
amortization
                            2,132              231              2,363        
Operating income            268                 16                284
                                                                               
Other income
(expense):
Interest expense            (70         )       (20       )       (90          )
Share of earnings
(losses) of                 4                   3                 7
affiliates, net
Realized and
unrealized gains            4                   5                 9
(losses) on financial
instruments, net
Gains (losses) on           (1          )       (1        )       (2           )
transactions, net
Other, net                  (14         )       (1        )       (15          )
                            (77         )       (14       )       (91          )
Earnings (loss)             191                 2                 193
before income taxes
Income tax benefit          (69         )       26               (43          )
(expense)
Net earnings (loss)         122                 28                150
Less net earnings
(loss) attributable         13                 17               30           
to noncontrolling
interests
Net earnings (loss)
attributable to             $   109            11               120          
Liberty stockholders
                                                                               
                                                                               
LINT Shares
Outstanding
Outstanding A and B
shares as of July 31,                           520
2013 (in millions)
                                                                               
                                                Quarter
                                                ended
LINTA and LINTB Basic
and Diluted Shares                              6/30/2013
(in millions)
Basic Weighted
Average Shares                                  523
Outstanding(“WASO”)
Potentially dilutive                            8         
shares
Diluted WASO                                    531       
                                                                               


LIBERTY INTERACTIVE CORPORATION
STATEMENT OF OPERATIONS INFORMATION
Three months ended June 30, 2012 - (unaudited)

                          Attributed                      
                             Interactive      Ventures         Consolidated
                             Group               Group           Liberty
                             amounts in millions
Revenue:
Net retail sales             $    2,365          —                2,365
Other revenue                —                  —               —        
Total revenue                2,365              —               2,365    
                                                                  
Operating costs and
expenses:
Cost of sales                1,488               —                1,488
Operating, including
stock-based                  199                 —                199
compensation
Selling, general and
administrative,
including stock-based        241                 —                241

compensation
Depreciation and             147                —               147      
amortization
                             2,075              —               2,075    
Operating income             290                 —                290
                                                                  
Other income
(expense):
Interest expense             (80         )       (27      )       (107     )
Share of earnings
(losses) of                  7                   28               35
affiliates, net
Realized and
unrealized gains             11                  (171     )       (160     )
(losses) on financial
instruments, net
Gains (losses) on            —                   288              288
transactions, net
Other, net                   (7          )       37              30       
                             (69         )       155             86       
Earnings (loss) before       221                 155              376
income taxes
Income tax benefit           (82         )       (45      )       (127     )
(expense)
Net earnings (loss)          139                 110              249
Less net earnings
(loss) attributable to       15                 —               15       
noncontrolling
interests
Net earnings (loss)
attributable to              $    124           110             234      
Liberty stockholders


LINT Shares
Outstanding
Outstanding A and B
shares as of July 31,        544
2012 (in millions)
                                                                  
                             Quarter ended
LINTA and LINTB Basic
and Diluted Shares (in       6/30/2012
millions)
Basic Weighted Average
Shares Outstanding           553
(“WASO”)
Potentially dilutive         9           
shares
Diluted WASO                 562         
                                                                  
                                                                  
                                                                  


LIBERTY INTERACTIVE CORPORATION
STATEMENT OF CASH FLOWS INFORMATION
Six months ended June 30, 2013 - (unaudited)

                              Attributed                   
                                 Interactive    Ventures       Consolidated
                                 Group             Group          Liberty
                                 amounts in millions
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net earnings (loss)              $   229           (26    )       203
Adjustments to reconcile
net earnings to net cash
provided by operating
activities:
Depreciation and                 311               156            467
amortization
Stock-based compensation         53                33             86
Cash payments for stock          (4       )        (1     )       (5       )
based compensation
Share of (earnings) losses       (20      )        24             4
of affiliates, net
Cash receipts from return        7                 8              15
on equity investments
Realized and unrealized
gains (losses) on                (17      )        81             64
financial instruments, net
Gains (losses) on                1                 1              2
disposition of assets, net
Deferred income tax              (86      )        (181   )       (267     )
(benefit) expense
Other, net                       39                (25    )       14
Intergroup tax allocation        (94      )        94             —
Changes in operating
assets and liabilities
Current and other assets         322               (74    )       248
Payables and other current       (359     )        (26    )       (385     )
liabilities
Net cash provided (used)         382              64            446      
by operating activities
                                                                  
CASH FLOWS FROM INVESTING
ACTIVITIES:
Cash proceeds from               —                 1,136          1,136
dispositions
Investments in and loans
to cost and equity               —                 (51    )       (51      )
investees
Capital expended for             (111     )        (25    )       (136     )
property and equipment
Purchases of short term
and other marketable             —                 (1,116 )       (1,116   )
securities
Sales of short term and
other marketable                 2                 442            444
securities
Other investing                  (7       )        (35    )       (42      )
activities, net
Net cash provided (used)         (116     )        351           235      
by investing activities
                                                                  
CASH FLOWS FROM FINANCING
ACTIVITIES:
Borrowings of debt               2,246             848            3,094
Repayments of debt               (2,055   )        (2,342 )       (4,397   )
Intergroup receipts              2                 (2     )       —
(payments), net
Shares repurchased by            —                 (42    )       (42      )
subsidiary
Shares issued by                 —                 19             19
subsidiary
Repurchases of Liberty           (499     )        —              (499     )
common stock
Other financing                  (39      )        —             (39      )
activities, net
Net cash provided (used)         (345     )        (1,519 )       (1,864   )
by financing activities
                                                                  
Effect of foreign currency       (29      )        —             (29      )
rates on cash
Net increase (decrease) in       (108     )        (1,104 )       (1,212   )
cash and cash equivalents
Cash and cash equivalents        699              1,961         2,660    
at beginning of period
Cash and cash equivalents        $   591          857           1,448    
at end period
                                                                           


LIBERTY INTERACTIVE CORPORATION
STATEMENT OF CASH FLOWS INFORMATION
Six months ended June 30, 2012 - (unaudited)

                          Attributed                     
                             Interactive     Ventures         Consolidated
                             Group               Group            Liberty
CASH FLOWS FROM              amounts in millions
OPERATING ACTIVITIES:
Net earnings (loss)          $   272             82               354
Adjustments to
reconcile net earnings
to net cash provided
by operating
activities:
Depreciation and             290                 —                290
amortization
Stock-based                  35                  —                35
compensation
Cash payments for
stock based                  (2       )          —                (2      )
compensation
Share of losses
(earnings) of                (20      )          (26   )          (46     )
affiliates, net
Cash receipts from
return on equity             5                   8                13
investments
Realized and
unrealized gains             (25      )          203              178
(losses) on financial
instruments, net
Gains (losses) on
disposition of assets,       —                   (288  )          (288    )
net
Deferred income tax          (66      )          92               26
(benefit) expense
Other, net                   9                   (34   )          (25     )
Intergroup tax               83                  (83   )          —
allocation
Changes in operating
assets and liabilities
Current and other            357                 —                357
assets
Payables and other           (167     )         5              (162    )
current liabilities
Net cash provided
(used) by operating          771               (41   )         730     
activities
                                                                  
CASH FLOWS FROM
INVESTING ACTIVITIES:
Cash proceeds from           —                   348              348
dispositions
Investments in and
loans to cost and            (11      )          (97   )          (108    )
equity investees
Capital expended for         (151     )          —                (151    )
property and equipment
Sales (purchases) of
short term and other         46                  —                46
marketable securities
Other investing              (41      )         1              (40     )
activities, net
Net cash provided
(used) by investing          (157     )         252            95      
activities
                                                                  
CASH FLOWS FROM
FINANCING ACTIVITIES:
Borrowings of debt           666                 —                666
Repayments of debt           (761     )          (112  )          (873    )
Intergroup receipts          99                  (99   )          —
(payments), net
Repurchases of Liberty       (637     )          —                (637    )
common stock
Other financing              (26      )         —              (26     )
activities, net
Net cash provided
(used) by financing          (659     )         (211  )         (870    )
activities
                                                                  
Effect of foreign            (12      )         —              (12     )
currency rates on cash
Net increase
(decrease) in cash and       (57      )          —                (57     )
cash equivalents
Cash and cash
equivalents at               847               —              847     
beginning of period
Cash and cash
equivalents at end           $   790           —              790     
period

Contact:

Liberty Interactive Corporation
Courtnee Ulrich, 720-875-5420
 
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