Blockbuster Posts $11.7 Million Loss in December16 Feb, 2011 By: Erik Gruenwedel
Bankrupt Blockbuster Inc. recorded a loss of $11.7 million for the period from Nov. 29 to Jan. 2, according to a court filing.
Since filing for Chapter 11 protection Sept. 23, 2010, the Dallas-based rental icon has generated a loss of $90.3 million on revenue of $526.9 million.
During the most recent five-week period, Blockbuster reported $168.7 million in rental revenue, which included $28.8 million in previously-rented product. Merchandise sales totaled $32.8 million, in addition to $5 million in other revenue.
The company does not separate revenue from its by-mail or transactional video-on-demand business units. Blockbuster Express kiosks are owned and operated under a license agreement by NCR Corp.
Blockbuster generated a gross profit of $121.1 million, but general and administrative costs ($108.4 million), advertising ($14.8 million), $5 million in depreciation and $18.8 million in goodwill costs undermined the tally, resulting in an operating loss of $26.1 million.
During the period, Blockbuster borrowed $20 million in debtor-in-possession funding and paid back $43.2 million.