Blockbuster quarterly loss widens

DALLAS Blockbuster reported that total revenues for the fourth quarter of 2009 were $1.08 billion as compared with total revenue of $1.31 billion for the same period one year ago. According to the company, results of the fourth quarter were primarily attributable to a 14.7% decrease in same-store comparables, a further reduction in company-operated stores and competitive pressures.

Net loss in the fourth quarter of 2009 was $434.9 million, or $2.24 per share, which includes the non-cash charge of $369.2 million for the impairment of goodwill and other long-lived assets.  This compares with a net loss of $359.8 million, or $1.89 per share, in the fourth quarter of 2008, which included the $435.0 million non-cash charge for the impairment of goodwill and other long-lived assets.

Fourth quarter 2009 domestic same-store sales decreased 15.9%, reflecting rental and retail comparable decreases of 11.3% and 26.5%, respectively.  The domestic rental and retail comparable results were primarily driven by the competitive pressures and macroeconomic environment, the company reported. 

“While Blockbuster had a challenging year, we did make progress during the year towards the continued transformation of Blockbuster. We closed several hundred stores, but added over 2,000 new Blockbuster Express kiosks. In addition, we introduced a new a la carte by-mail program that provides our in-store customers access to over 95,000 titles and launched Blockbuster On Demand, making streaming video-on-demand available to millions of households with the movies they enjoy at the touch of a button. We completed these initiatives in spite of a challenging global economy and the practical constraints of limited liquidity while we were refinancing the company’s debt,” stated Jim Keyes, chairman and CEO of Blockbuster. “Increased inventory levels to support a higher in-stock availability and our investment in advertising were intended to improve top line performance; however, disappointing holiday sales due primarily to aggressive new competition and lower than expected international performance led to a shortfall in our financial results.”