Blockbuster Entertainment Corp. turned in record earnings and revenues for the second quarter.
The Ft. Lauderdale-based video and music retailer posted a net income of $ 47.7 million (23 cents per share) for the period ended June 30, a 59% increase over the same quarter last year.
Revenues were up 72%, climbing to $ 456.1 million from $ 264.6 million.
According to Blockbuster chairman and CEO H. Wayne Huizenga, same-store revenue was up 5.4% for stores in operation for more than a year.
Also giving the company a significant boost were the music operations that it acquired through the purchase of 237 Sound Warehouse and Music Plus stores in October 1992. Other investments, such as a 21.3% interest in the Discovery Zone Inc. recreational fitness centers, contributed as well.
Families, fun slant
As for the outlook, Blockbuster announced that during the quarter it opened its first family entertainment center in Sunrise, Fla. The company has reached agreements to purchase its two largest franchises. It also has the rights to develop 50 Discovery Zone FunCenters in the U.S. and a joint venture in the U.K.
Separately, Spelling Entertainment Group Inc. posted a whopping jump in net income to $ 7.9 million (15 cents) for the second quarter ended June 30, compared to a net profit of $ 2.5 million (5 cents).
Revenues climbed 17.6% to $ 71.9 million from $ 61.1 million in the same period last year.
Earnings last year included a $ 958,000 (2 cents) extraordinary gain.
According to Spelling CEO Steven Berrard, the company’s profitability was a result of “Beverly Hills, 90210” and “Melrose Place.”
As reported earlier, Spelling received an order for an additional 10 “Melrose” episodes, pushing it to 32 for its second season. “An order of this magnitude greatly enhances the syndication prospects for the series,” said Berrard.
Berrard, who is also president of Blockbuster Entertainment Corp., noted last week at Spelling’s annual meeting that the company had also received an order from NBC for “Winnetka Road,” starring Ed Begley Jr., as a midseason replacement.
Blockbuster owns 63.5% of Spelling.