H’wood Ent. cuts losses

More stores, revenue sharing key

NEW YORK — Video retailer Hollywood Entertainment said Tuesday that revenue sharing and more stores helped narrow its net loss to $2.6 million in the second quarter from $3.9 million the year before. Revenues rose 45% to $205.6 million.

Excluding the acquisition of money-losing Internet entertainment site Reel.com, Hollywood Entertainment’s net income jumped 66% to $9.4 million.

Hollywood Entertainment chairman and CEO Mark Wattles said he is impressed by the growth of the online company and is “currently negotiating several strategic transactions in our Internet business designed to realize the value of Reel.com for shareholders.”

For the parent company, revenue-sharing arrangements with major studios are boosting sales as the video retailer added 81 new stores in the quarter. With 1,403 video superstores in 43 states as of June 30, Hollywood Video said it is adding new stores at the rate of one a day.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety