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Hollywood Entertainment Corp. Posts Mixed Third-Quarter Results

13 Oct, 2003 By: Erik Gruenwedel

Despite a $33 million increase in third-quarter revenue, to $402 million from the same period last year, Hollywood Entertainment Corp. posted an $11.5 million decrease in net income for the quarter ended Sept. 30.

Net income, which was $20.4 million, or 32 cents per diluted share, compared with $31.9 million, or 50 cents per share last year, surpassed the guidance of 30 cents per diluted share previously set by the parent of Hollywood Video.

Only 7 percent of third-quarter revenue came from increases in same-store sales, which were buoyed by an 8 percent rise in video-game merchandise sales. New DVD/VHS movie sales dropped 1 percent; rental revenue remained flat.

During the quarter, Hollywood Video added 94 Game Crazy video game departments and opened 21 new franchises, for a total of 1,864 stores.

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