Hollywood Entertainment Corp. Posts Mixed Third-Quarter Results13 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.