Tags: US | Earns | Blockbuster

Blockbuster's Loss Widens Amid Netflix Competition

Friday, 13 Aug 2010 01:59 PM

Movie rental chain Blockbuster Inc., which has been trying to avoid filing for bankruptcy protection amid tough competition from rivals like Netflix Inc., said its second-quarter net loss widened.

The company also said it agreed to a new forbearance agreement with debtholders that will give it more time as it seeks to recapitalize.

Quarterly net loss widened to $69 million, or 32 cents per share, from $37 million, or 21 cents per share, last year.

Revenue for the quarter ended July 4 slipped 20 percent to $788 million from $982 million last year.

On average, analysts surveyed by Thomson Reuters forecast a quarterly loss of 24 cents per share and revenue of $840.1 million.

Blockbuster said quarterly results were hurt by the closure of company-operated stores, lower revenue in stores open at least a year, and "liquidity issues" including costs related to its recapitalization efforts and lease-termination costs.

Blockbuster has tried to revamp its offerings due to tough competition in the movie-rental sector. In August it launched a service with Comcast to offer DVDs by mail. It also offers video games by mail.

Blockbuster, based in Dallas, said its new forbearance agreement with senior secured noteholders is effective until Sept. 30.

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Movie rental chain Blockbuster Inc., which has been trying to avoid filing for bankruptcy protection amid tough competition from rivals like Netflix Inc., said its second-quarter net loss widened.The company also said it agreed to a new forbearance agreement with...
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Friday, 13 Aug 2010 01:59 PM
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