Blockbuster to Miss Subscription Target6 Oct, 2005 By: Holly J. Wagner
Blockbuster today reported it will miss its first-quarter 2006 target to reach 2 million online subscribers, meeting it later in the year, and that it expects domestic same-store rental revenue for the third quarter to fall 1 percent.
The same-store figure includes revenue from in-store and online rentals after the impact of eliminating late fees, which accounted for about 13 percent of the company's rental revenue in the third quarter of 2004.
The company also reported its third quarter results will reflect that it is in compliance with its debt covenants, heading off speculation.
"In the face of a challenging rental industry, we believe we will continue to outperform the store-based rental industry as a result of the elimination of extended viewing fees, and we see significant growth opportunities in the online rental business that we intend to aggressively pursue," said chairman and CEO John Antioco.
The company expects to announce its third quarter results in early November.