Credit crunch hurts Liberty
Liberty Media Corp. said third-quarter profit dropped at its QVC home-shopping unit as the credit crunch slowed consumer spending and more customers missed payments on QVC-issued credit cards.
Sales at QVC fell 2.7% to $1.64 billion in the third quarter, Englewood, Colo.-based Liberty said. The unit’s operating income before depreciation and amortization declined 14% to $312 million, Liberty said.
QVC drew down its remaining bank credit facilities to buy back $782 million worth of Liberty Media bonds due next year, the company said. The move will reduce the amount of debt Liberty must pay or refinance in 2009 to $140 million, said Chief Executive Greg Maffei.
Liberty Interactive shares, which includes QVC, fell $1.48, or 23%, to $4.90.
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