Headlines

No Blockbuster Quarter

Retailer’s losses widen as video rental market softens

Published

17 years ago

May 3, 2007

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Blockbuster Inc. (Dallas) announced an increased first-quarter loss because of the soft market for movie rentals and heavy spending on its online program.

Blockbuster put its quarterly loss at $49.2 million compared with a loss of $4.7 million a year ago.

Sales of games and movies rose, but rental revenue — two-thirds of Blockbuster’s total revenue — fell less than 1 percent, a further sign of continuing weakness in the core business of movie rentals.

Chairman and ceo John Antioco said that the stores faced “an extremely tough” sales climate but that Blockbuster’s online service would turn profitable next year.

Earlier this week, Blockbuster sold Game Station Ltd. (York, U.K.), a specialty games retailer in Britain, to The Game Group plc (Hampshire, U.K.) for about $150 million.

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