Blockbuster Reports Strong Financials24 Apr, 2002 By: Hive News
Blockbuster Inc. posted a gross profit of $798.5 million for the first quarter ended March 31 compared to $779.2 million in the same period the year prior.
The gain came as a result of a “significant” improvement in gross margin, the addition of 161 company-operated stores and “slight growth” in same-store revenues of 0.2 percent, the company reported. The gross margin increase of 60.2 percent for the quarter from 59.6 percent in the first quarter of last year resulted from higher-margin DVD rentals, the company reported.
Total revenues for the quarter were $1.33 billion compared to $1.31 billion in first quarter 2001.
“We posted strong growth in profitability and cash flow in spite of the lighter release schedule, unseasonably warm winter weather and a Winter Olympics with one of the highest television viewerships ever,” chairman and CEO John Antioco stated.