Blockbuster Stock Up on News of Lower Loss

Shares of Blockbuster Inc. rose as much as 20% after the company said its fourth-quarter loss had narrowed amid optimism for its developing business on the Internet. The video retailer controlled by Viacom Inc. reported a loss of $6.8 million, or 4 cents a share, compared with a loss of $12.9 million, or 9 cents, a year ago. Revenue rose 9% to $1.2 billion as the company opened more stores and increased market share. Sales at stores open at least a year rose 2.8% even as industrywide rental activity fell about 9%. Blockbuster is developing its Internet business by aligning with companies such as America Online Inc. with the goal of electronically delivering movies to consumers’ homes and allowing them to reserve movies online for pickup at a store. Some analysts said they’re becoming more optimistic that this could help drive growth. The Dallas-based company said it expects to add new and growing sources of revenue this year through the sale of Internet, entertainment and communications services from its stores and Web site. Blockbuster stock rose $2.19 to $14.50 in heavy trading on the New York Stock Exchange. Viacom said in December that it would delay the spinoff of its remaining 82% stake until Blockbuster’s share price exceeds $20.