Blockbuster sees improved 1Q results

DALLAS Blockbuster reported net income for the first quarter of 2008 was $45.4 million, or 20 cents per diluted share, an improvement of $94.4 million as compared with a net loss of $49 million, or 27 cnets per share, for the first quarter of 2007.

Total revenues decreased 5.4% to $1.39 billion for the first quarter of 2008 from $1.47 billion for the first quarter of 2007, as a result of fewer company-operated stores. Domestic same-store revenues increased 2.9% as compared to the first quarter of 2007, reflecting a 920 basis point improvement over the first quarter of 2007. This increase was driven by a 0.4% growth in same-store rental revenues and a 19.7% increase in same-store merchandise sales.

"The significant improvement in our first quarter results demonstrates the underlying strength of our core rental and emerging retail business," said Jim Keyes, Blockbuster chairman and ceo. "BLOCKBUSTER Total Access, our subscription rental offering, is now profitable and positioned for growth. Additionally, our stores achieved positive growth in both sales and margin. We are particularly pleased that domestic same-store revenues showed an improvement for the first time in five years primarily as a result of several initiatives we have put in place, including an increased availability of top new movies, improved store merchandising and more effective pricing. Going forward, we are confident we can continue to grow our core business, which will enable us to focus on aggressive development of our digital offerings. Our ability to provide convenient access to both physical and electronic media entertainment will provide Blockbuster a meaningful competitive advantage and allow us to create enhanced shareholder value over the long-term."