Blockbuster: $35 million Q3 net loss
Blockbuster has announced financial results for the third quarter, with total revenues decreasing 5.7 per cent to USD 1.24 billion
Blockbuster has announced financial results for the third quarter, with total revenues decreasing 5.7 per cent to USD 1.24 billion.
The company's net loss for Q3 was USD 35 million, or USD 0.20 per common share, compared with a net loss of USD 24.7 million for the same period in the prior year.
Blockbuster blamed the decrease in revenue to the closure and sale of 526 stores, but noted that the decrease was partially offset by a USD 79.2 million year-over-year increase in revenues from its online rental service.
The company estimates its online base at 3.1 million subscribers.
"We believe the actions we have taken over the last quarter have better positioned Blockbuster for the future," said Jim Keyes, Blockbuster's chairman and CEO.
Blockbuster management has implemented a plan to reduce annualized overhead costs by approximately USD 45 million through the elimination of staffing and operational redundancies in their in-store and online corporate support structure and through improvements in other operating efficiencies.
"Going forward, we are focused on protecting our core rental business, developing new retail opportunities, and becoming the preferred provider of digital entertainment," Keyes said.
In a press release, the company recognised that entertainment content would eventually be provided through digital delivery but did not specify how it planned to provide that service.
"Our goal is to continue to increase our membership base by providing even more ways for customers to get the entertainment they want through our stores, through the mail and through new technologies," said Keyes.
Over 20 million customers worldwide used Blockbuster's services each month during the third quarter.