Blockbuster posts Q1 loss, revenue decrease

DALLAS Blockbuster reported that total revenues for the first quarter of 2010 were $939.4 million, compared with total revenues of $1.09 billion for the same period one year ago. Results of the first quarter were primarily attributable to a 7.1 percent decrease in worldwide same-store comparables, a further reduction in company-operated stores and competitive pressures, the company reported.

Blockbuster reported that net loss for the first quarter of 2010 was $65.4 million, or 33 cents per share, compared with net income of $27.7 million, or 12 cents per diluted share, in the first quarter of 2009. 

First quarter 2010 domestic same-store sales decreased 7.8%, reflecting rental and retail comparable decreases of 6.4% and 13.9%, respectively.  

“During the first quarter we continued progress to recapitalize our business.  We have had encouraging discussions with both financial and strategic partners and expect to have additional details to report by our annual stockholders’ meeting in late June,” stated Jim Keyes, chairman and CEO of Blockbuster.  “In spite of competitive challenges, we experienced better domestic rental same-store comparables trends and achieved a number of goals to establish a significant competitive advantage going forward.  Most important was our success in securing agreements with key studio partners to ensure our customers receive day-and-date, cross-channel access to hot new releases.  We now have a 28 day rental advantage on nearly 50% of major new releases.”

Tom Casey, EVP and CFO of Blockbuster, stated, “We expect the next 12 to 18 months will remain challenging.  For the full year of 2010, we remain focused on the following financial initiatives: lowering our debt service costs; aggressively reducing operating expenses; preserving liquidity through operational efficiencies; and focusing on improving top line performance. Also, following their liquidation and store closures, we believe Movie Gallery store closings could favorably affect hundreds of Blockbuster locations.”