A Blockbuster Quarter

Blockbuster Inc. (Dallas) announced an 8 percent increase in total revenues for the first quarter, ending March 31, 2001, and a 5.3 percent increase in worldwide same-store sales. The company attributed the solid performance in part to a net increase of 329 company-operated stores since the first quarter of 2000.

Rental revenues increased 9.1 percent, to $1.12 billion, driven to a great extent by what the company called “extraordinary growth” of DVDs.

The company noted that worldwide same-store revenues for the second quarter are likely to be flat compared to the period a year ago, which experienced an unusually strong slate of titles, leading to an 11 percent increase in same-store revenues over 1999. In fact, said the company, worldwide same-store revenues increases are expected to be in the low single digit range for the full year. Nonetheless, the company said it still expects to add approximately 200-250 company-operated stores, the majority of which will be domestic. Capital expenditures for the full year are expected to be approximately $150-$175 million.

“Our core rental business continues to thrive with first quarter DVD rental transactions increasing more than 200 percent year over year,” said John Antioco, chairman and ceo. “Looking ahead, our DIRECTV and RadioShack alliances will complement our growing rental business and contribute to our momentum throughout 2001 and beyond.”

Blockbuster Inc., a publicly traded subsidiary of Viacom Inc., has more than 7700 stores throughout the Americas, Europe, Asia and Australia. Other Viacom properties include CBS, MTV, Nickelodeon, VH1, BET, Paramount Pictures, Infinity Broadcasting, UPN, TNN: The National Network, CMT, Showtimeand Simon & Schuster.