Earnings: Blockbuster Swings To Profit In Q1 As Revenues Drop 5.4 Percent
This story was written by David Kaplan.
While movie renter Blockbuster (NYSE: BBI) saw Q1 profits of $45.4 million ($0.20 per diluted share) compared to last year's $49 million net loss, the closing of over 400 retail locations depressed revenues, which were down 5.4 percent to $1.39 billion from Q107's $1.47 billion - a decrease of nearly $80 million. At the same time, same-store revenues in the U.S. grew 2.9 percent year-over-year. As has become its custom, Blockbuster didn't break out the performance of its by-mail business, which is dominated by its main rival Netflix (NSDQ: NFLX). The shuttering of 412 brick and mortar stores included Blockbuster's divestiture of Gamestation chain of 217 locations in the UK.
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By David Kaplan