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Hastings Widens Third-Quarter Loss

19 Nov, 2012 By: Erik Gruenwedel

Hastings Entertainment Inc. Nov. 19 reported a third-quarter (ended Oct. 31) net loss of $8 million, up 45% from a net loss of $5.5 million during the previous-year period.

Amarillo, Texas-based Hastings, which operates 137 entertainment and consumer electronics retail stores throughout the Southwest and Colorado, said total sales surpassed $87.9 million compared to $92.6 million last year.

Same-store sales of movie discs decreased 1.5% during the quarter primarily due to decreased sales of previously-viewed films. Rental comps decreased 14% primarily due to fewer rentals of movies and video games, partially offset by an increase in rentals of Blu-ray Disc movies. Rentals decreased 11.6% primarily due to competition from Redbox kiosks and subscription-based services and negative impact on rentals from the Olympic Games.

Rental revenue topped $13.3 million compared to $15.8 million last year. Through the first nine months of the year, rental revenue topped $44.2 million compared to $57.2 million last year.

“Our revenues continue to be impacted by the increasing popularity of digital delivery, rental kiosks and subscription-based services,” said CEO John Marmaduke in a statement.  “We also saw a significant negative impact on rental revenue … due to the November elections.”

Hastings said it reduced pre-tax losses $1.4 million.

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