Blockbuster Reports Small Gains

Blockbuster Inc. (Dallas) has reported signs of improvement despite a deeper loss in its second quarter.

The movie rental retailer said it lost $44.7 million in the three months ending July 6, 2008, a 31 percent bigger loss than a year ago. But on an operating basis, this year’s showing was actually better than last year’s, when it recorded an $81 million windfall from the sale of more than 200 Gamestation stores in the U.K.

Total revenues for the quarter increased 3.3 percent and net income improved $70.8 million. Same-store sales gained 9 percent.

“To paraphrase Mark Twain, the demise of Blockbuster has been greatly exaggerated,” said chairman and ceo Jim Keyes. “Our second quarter results mark Blockbuster's fourth consecutive quarter of improved same-store sales. We are especially pleased with the 14.2 percent increase in domestic same-store revenues, which includes a 6.5 percent increase in rental revenues.”