Share Repurchases

From May 1, 2012 through June 29, 2012, after which we mailed our proxy statement, Liberty Interactive repurchased approximately 14.7 million Series A Liberty Interactive shares at an average cost per share of $17.52 for total cash consideration of $257.4 million. Since the creation of the Liberty Interactive stock in May 2006, Liberty Interactive has repurchased approximately 172.2 million shares at an average cost per share of $18.99 for aggregate cash consideration of $3.3 billion. These repurchases represent approximately 24.6% of the shares outstanding at the time of creation of the Liberty Interactive stock. As of July 31, 2012, Liberty Interactive had approximately $429 million remaining under its stock repurchase authorization.

Liberty Interactive holds controlling interests in companies that are engaged in digital commerce, including QVC, Provide Commerce, Backcountry.com, Bodybuilding.com, Celebrate Interactive, CommerceHub, and Right Start, and also owns interests in HSN, Tree.com, Interval Leisure Group, TripAdvisor, Expedia and Lockerz.

FOOTNOTES
  1)   Liberty Interactive Corporation’s President and CEO, Gregory B. Maffei, will discuss these highlights and other matters in Liberty Interactive’s earnings conference call which will begin at 10:00 a.m. (ET) on August 8, 2012. For information regarding how to access the call, please see “Important Notice” later in this document.
2) For a definition of adjusted OIBDA and applicable reconciliations and a definition of adjusted OIBDA margin, see the accompanying schedules.
 

LIBERTY INTERACTIVE CORPORATION FINANCIAL METRICS
     

(amounts in millions)

2Q11
 

2Q12
 

% Change
Revenue
QVC
US $ 1,232 1,280 4 %
International   666     694     4 %
Total QVC Revenue   1,898     1,974     4 %
eCommerce businesses   347     391     13 %
Total Liberty Interactive Revenue $ 2,245     2,365     5 %
 
Adjusted OIBDA
QVC
US $ 305 315 3 %
International   113     123     9 %
Total QVC Adjusted OIBDA   418     438     5 %
eCommerce businesses 36 23 -36 %
Corporate and other   (4 )   (6 )   -50 %
Total Liberty Interactive Adjusted OIBDA $ 450     455     1 %
 
Operating Income
QVC
US $ 204 214 5 %
International   77     87     13 %
Total QVC Operating Income   281     301     7 %
eCommerce businesses 19 (1 ) -105 %
Corporate and other   (12 )   (10 )   17 %
Total Liberty Interactive Operating Income $ 288     290     1 %
                     
 

QVC OPERATING METRICS
     
(amounts in millions except average sale price amounts) 2Q11   2Q12   % Change
QVC - US (1)
Revenue $ 1,232 1,280 4 %
Adjusted OIBDA $ 305 315 3 %
Adjusted OIBDA margin 24.76 % 24.61 % -15 bps
Average sale price (ASP) $ 52.02 54.84 5 %
Units sold 25.68 25.59 0 %
eCommerce % of US revenue 35.08 % 38.89 % 381 bps
Return rate 18.44 % 19.61 % -117 bps
 
QVC - Japan (1)
Revenue $ 269 310 15 %
Adjusted OIBDA $ 59 70 19 %
Adjusted OIBDA margin 21.93 % 22.58 % 65 bps
Average sale price (ASP) ¥6,179 6,376 3 %
Units sold 3.89 4.35 12 %
 
QVC - Germany (1)
Revenue $ 237 210 -11 %
Adjusted OIBDA $ 41 39 -5 %
Adjusted OIBDA margin 17.30 % 18.57 % 127 bps
Average sale price (ASP) €36.51 35.31 -3 %
Units sold 5.99 5.92 -1 %
 
QVC - UK (1)
Revenue $ 154 156 1 %
Adjusted OIBDA $ 26 21 -19 %
Adjusted OIBDA margin 16.88 % 13.46 % -342 bps
Average sale price (ASP) £27.07 27.90 3 %
Units sold 3.74 3.79 1 %
 
QVC - Italy (1)
Revenue $ 6 18 200 %
Adjusted OIBDA $ (13 ) (7 ) 46 %
Adjusted OIBDA margin -216.67 % -38.89 % NM
Average sale price (ASP) €32.83 32.71 0 %
Units sold     0.13     0.47     NM  

(1) Revenue and adjusted OIBDA change calculated in US dollars, not local currency

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