You will be redirected back to your article in seconds

Blockbuster earnings, revs jump in fourth qtr.

Fourth-quarter earnings at Blockbuster Entertainment Corp. soared 71% on revenue growth of 66% as the company managed to rent more videos.

Rentals, which had grown at a sluggish 1% to 2% in the last few years, climbed 9% in 1993.

Rentals have huge margins and comprise about 70% of Blockbuster’s overall sales. That increase led to the jump in revenue and income.

But even Blockbuster’s other lines of business did well. Music and video sales both posted strong gains in revenue and operating income and Spelling Entertainment Group Inc., of which Blockbuster owns 70.5%, had a solid year.

“The company continued its record of profitable growth in all lines of our business during the quarter,” said H. Wayne Huizenga, Blockbuster’s chair/CEO.

For the quarter, Blockbuster earned $ 81.3 million (34 cents) vs. $ 47.6 million (24 cents) in the like period a year ago. Revenue was $ 723.7 million, up from $ 436.7 million. Systemwide revenue, which includes sales from franchise-owned stores, was $ 891.4 million, up from $ 599.6 million.

For the year, the company earned $ 243.6 million ($ 1.11) vs. $ 148.3 million (77 cents) in 1992. Revenue was $ 2.2 billion, up from $ 1.3 billion. Systemwide revenue was $ 2.9 billion, up from $ 2 million.

Blockbuster recently announced plans to merge with Viacom Inc., the communications conglomerate that has bid for Paramount Communications Inc. Paramount said it expected to lose $ 35 million to $ 40 million in the fiscal quarter ended Monday.

“If there were not any news on Paramount, Blockbuster’s stock would have moved up big time,” said Paul Marsh.

As it was, Blockbuster’s stock closed down 88 cents at $ 27 in New York Stock Exchange trading.

More Biz

  • Bill OReilly Roger Ailes Sexual Harrassment

    Bill O'Reilly, Roger Ailes Still Loom Over Fox's Business (Analysis)

    Fourth-quarter earnings at Blockbuster Entertainment Corp. soared 71% on revenue growth of 66% as the company managed to rent more videos. Rentals, which had grown at a sluggish 1% to 2% in the last few years, climbed 9% in 1993. Rentals have huge margins and comprise about 70% of Blockbuster’s overall sales. That increase led […]

  • Monica Macer

    MPTF's NextGen Member Monica Macer: 'We Believe in Taking Care of Our Own'

    Fourth-quarter earnings at Blockbuster Entertainment Corp. soared 71% on revenue growth of 66% as the company managed to rent more videos. Rentals, which had grown at a sluggish 1% to 2% in the last few years, climbed 9% in 1993. Rentals have huge margins and comprise about 70% of Blockbuster’s overall sales. That increase led […]

  • Éric Salvail Suspends Career After Sexual

    Quebec Radio Star and Producer On Leave Over Sexual Harassment Allegations

    Fourth-quarter earnings at Blockbuster Entertainment Corp. soared 71% on revenue growth of 66% as the company managed to rent more videos. Rentals, which had grown at a sluggish 1% to 2% in the last few years, climbed 9% in 1993. Rentals have huge margins and comprise about 70% of Blockbuster’s overall sales. That increase led […]

  • Roy Price

    Harvey Weinstein Fallout: Entertainment Figures Accused of Sexual Harassment

    Fourth-quarter earnings at Blockbuster Entertainment Corp. soared 71% on revenue growth of 66% as the company managed to rent more videos. Rentals, which had grown at a sluggish 1% to 2% in the last few years, climbed 9% in 1993. Rentals have huge margins and comprise about 70% of Blockbuster’s overall sales. That increase led […]

  • Harvey Weinstein

    Colony Capital Has Three-Week Window to Avert Weinstein Co. Bankruptcy (EXCLUSIVE)

    Fourth-quarter earnings at Blockbuster Entertainment Corp. soared 71% on revenue growth of 66% as the company managed to rent more videos. Rentals, which had grown at a sluggish 1% to 2% in the last few years, climbed 9% in 1993. Rentals have huge margins and comprise about 70% of Blockbuster’s overall sales. That increase led […]

  • Mark Baker Warner Music Group

    Warner Music Group Names Mark Baker VP of Public Policy & Government Affairs

    Fourth-quarter earnings at Blockbuster Entertainment Corp. soared 71% on revenue growth of 66% as the company managed to rent more videos. Rentals, which had grown at a sluggish 1% to 2% in the last few years, climbed 9% in 1993. Rentals have huge margins and comprise about 70% of Blockbuster’s overall sales. That increase led […]

  • Lupita Nyong'o Harvey Weinstein

    Lupita Nyong'o Details Harvey Weinstein's Advances Toward Her in Op-Ed: 'I Felt Unsafe'

    Fourth-quarter earnings at Blockbuster Entertainment Corp. soared 71% on revenue growth of 66% as the company managed to rent more videos. Rentals, which had grown at a sluggish 1% to 2% in the last few years, climbed 9% in 1993. Rentals have huge margins and comprise about 70% of Blockbuster’s overall sales. That increase led […]

More From Our Brands

Access exclusive content