Blockbuster

Blockbuster Inc. (Dallas) has announced a 3 percent increase in total revenues for its first quarter of 2005 ended March 31. The company noted that that increase was despite the elimination of $145.3 million in extended viewing (late) fee revenue.

Total capital expenditures for the full-year 2005 are expected to be approximately $150 million, compared with the $289.1 million recorded in 2004. This reflects fewer new store openings, fewer store remodels and fewer additions of freestanding and game store-in-stores.

“The company’s first quarter performance was in line with our expectations and in keeping with our plan to reinvigorate our core rental business and develop new revenue streams,” said embattled chairman and ceo John Antioco. “In fact, even after the elimination of approximately $145 million in extended viewing fee revenues, our year-over-year total revenues are up, and rental transactions increased more than 20 percent, fueled by the ‘No Late Fees’ program, in-store subscriptions and growth in Blockbuster online. While the level of investment in these initiatives was significant, we are balancing our spending levels with cost containment. We believe that the best prospects for realizing meaningful shareholder value, short- or long-term, are through the continued implementation and successful completion of our current strategy.”