Blockbuster focuses on online, after 2Q loss

DALLAS Blockbuster Inc. today reported that total revenues for the second quarter ended July 1 decreased 2.8% to $1.26 billion from $1.3 billion for the second quarter of 2006. For the second quarter of 2007, net loss was $35.3 million, or 20 cents per common share, as compared with net income of $68.4 million, or 31 cents per diluted common share, for the second quarter of 2006.

According to Blockbuster, the revenue decrease was mostly due to a reduction in rental revenues from the closure of stores, an unfavorable home video release schedule and the sale of 217 Gamestation stores on May 2. The company added that growth in its online rental service helped to offset the decline.

Jim Keyes, Blockbuster chairman and ceo, commented, "While we remain committed to capturing market share in the overall video rental market, we are absolutely focused on striking an appropriate balance between growth and enhanced profitability going forward. To this end, the company is undergoing a comprehensive review of its business aimed at identifying and implementing initiatives designed to revitalize the company, enhance the organizational structure and improve profitability. Our goal is to transform Blockbuster into a company that quickly responds to customers' changing needs for convenient access to media entertainment."