Blockbuster Posts Four-week $46.2M Loss5 May, 2011 By: Erik Gruenwedel
Chain loses $114.6 million from Jan. 31 through April 3.
Blockbuster reported a net loss of $46.2 million for the four-week period from March 7 to April 3 (three days before its $320 million sale to Dish Network), according to a filing with U.S. Bankruptcy Court in New York.
The Dallas-based rental chain posted revenue of $173 million during the period, which included $83.1 million in disc rentals, $64.5 million in previously rented product revenue, $21.7 million in merchandise revenue and $3.7 million in other revenue.
Blockbuster does not break out revenue from its by-mail service or license agreement with NCR Corp., which owns and operates nearly 9,000 Blockbuster Express kiosks.
From Jan. 31 through April 3, Blockbuster reported a net loss of $114.6 million as consumers gravitate toward rental kiosks, Netflix, transactional video-on-demand and, to a lesser extent, independent video stores.
Revenue for the two-month period totaled $447.8 million, including $258 million in disc rentals, $124.9 million in previously rented product revenue, $54.8 million in merchandise revenue and $10.1 million in other revenue.
Blockbuster, which posted a gross profit of $238 million during the two-month period ($83.9 million during the four-week period), again was undermined by general and administrative costs totaling a whopping $301 million ($117.5 million during the four-week period).