Blockbuster reports 4Q domestic comps increase of 4.4%

DALLAS Blockbuster reported that domestic same-store sales increased 4.4% in the fourth quarter of 2008, representing a 5.3% increase when compared to a decline of 0.9% in the same period in 2007. The increase in same-store sales was comprised of a 2.6% decrease in domestic same-store rental comparables and a 36.5% increase in domestic same-store retail comparables, which was largely driven by increased sales of games, game merchandise and consumer electronics.

For the full year of 2008, Blockbuster achieved a 6.4% increase in domestic same-store sales, compared to a decrease of 6.9% in 2007. The 2008 domestic same-store comparables included a 1.2% increase in domestic same-store rental comparables and a 37.4% increase in domestic same-store retail comparables.

"In 2008 we executed on our key initiatives to grow the core rental business, enhance our retail offering and develop digital delivery channels. As a result, adjusted EBITDA exceeded our guidance range of $300 million to $315 million," stated Jim Keyes, Chairman and CEO Blockbuster. "With respect to our financing initiatives, we continue to work diligently to resolve the August 2009 debt maturities, aggressively reduce costs and maximize the company's strong cash flow generation. We look forward to sharing our progress."