Blockbuster swings to a loss on costs
Blockbuster Inc. said it swung to a second-quarter loss as the video-rental company spent heavily on its online business to compete with rival Netflix Inc.
The company reported a loss after paying dividends on preferred shares of $38.1 million, or 20 cents a share, for the three months ended July 1, compared with a profit of $65.6 million, or 31 cents, a year earlier.
Its loss from continuing operations was $34.2 million, or 19 cents a share, compared with a profit of $65.1 million, or 30 cents, a year earlier. Analysts polled by Thomson Financial expected a loss of 33 cents.
Shares of the Dallas-based company rose 10 cents, or 2.4%, to $4.27 on Thursday.
Base rental revenue dropped to $779.7 million from $817.4 million, while merchandise sales declined to $285.2 million from $299.8 million.
The biggest entertainment stories
Get our big stories about Hollywood, film, television, music, arts, culture and more right in your inbox as soon as they publish.
You may occasionally receive promotional content from the Los Angeles Times.
