Blockbuster Posts $1 Million Q1 Operating Income9 May, 2013 By: Erik Gruenwedel
Revenue drops nearly 50% due to store closures and impairment charges related to Blockbuster UK bankruptcy
Blockbuster LLC May 9 reported first-quarter (ended March 31) operating income of $1 million, down nearly 97% from operating income of $14 million during the previous-year period.
The Dish Network-owned subsidiary generated revenue of $180 million, down nearly 46% from revenue of $334 million last year. Blockbuster attributed the revenue decline to the deconsolidation of Blockbuster UK and domestic Blockbuster store closings during 2012 and 2013.
Blockbuster closed 150 U.S. stores in the quarter to end the period with 650 stores nationwide. As previously announced, the chain plans to close another 150 stores in the second quarter, leaving it with a third of the 1,500 stores when it was acquired out of bankruptcy by Dish in April 2011.
In a regulatory filing, Dish said it continues to evaluate costs associated with Blockbuster operations, including administrative costs at its relocated Denver headquarters, which could lead to further store closures.