Search
 

Blockbuster's Q1 Bust

DALLAS-The entertainment firm swings to a $57.5 million loss for the first quarter 2005 versus $114.4 million for the same period last year.

By Jennifer D. Duell | Updated on May 06, 2005

DALLAS-Blockbuster Inc. recorded a net loss for thefirst quarter 2005 of $57.5 million, or 31 cents pershare, compared with net income of $114.4 million, or63 cents per share, for same period in 2004. ThomsonFirst Call analyst estimated a loss of 28 cents pershare.

Blockbuster attributes the decline to losing $145.3million in late charge revenue because the “No LateFees” program, spending $12.6 million in a failed bidfor Hollywood Video and increased investment in itsonline business.

Total rental revenues, which accounted for 71.4% oftotal revenues for the first quarter 2005, decreased4% to $1.11 billion from $1.15 billion for the sameperiod last year–again because of the “No Late Fees”program. “The decrease in extended viewing feerevenues represented a 12.6% reduction in rentalrevenues from the first quarter of 2004 and was theprimary driver behind a 5.5% decrease in worldwidesame-store rental revenues for the first quarter of2005,” the company stated in a news release. However,the loss was offset by growth in base rental revenuesand an increase in rental transactions.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.