Blockbuster posts loss but sees rise in revs

Homevid retailer takes heavy charges for inventory management

HOLLYWOOD — Blockbuster Entertainment posted a broadened third-quarter loss of $224.9 million on Tuesday as the homevid retailer took heavy charges for inventory management.

The Dallas-based company, 82%-owned by Viacom, reported $19.3 million in red ink in the same period last year. Since then, Blockbuster has announced a campaign to eliminate about one-quarter of its VHS inventory as the chain boosts its emphasis on DVD.

Revenue rose 6% to $1.26 billion in the latest quarter.

Execs said in an earnings conference call with press and analysts that Blockbuster may end additional revenue-sharing pacts with Hollywood studios. Company already has terminated an agreement with Disney, though it separately struck new revenue-sharing pacts for DVD titles with MGM and another unnamed movie studio.

Blockbuster said it would take inventory-management charges of $356 million in the third quarter and $50 million in the fourth quarter. Excluding such charges, the company saw $43.4 million in profit during the latest quarter.

The results outpaced analyst forecasts, and Blockbuster shares climbed 40¢ to $24.90.

“Blockbuster continued to generate solid operating results, and we took decisive steps including the acceleration of our DVD initiative (to) capitalize on new growth opportunities,” chairman-CEO John Antioco said. “For the balance of 2001 and into next year, we will continue to focus on top-line growth and increasing our gross margin, while leveraging our infrastructure to maximize profits.”

(Bloomberg News contributed to this report.)

More Digital

  • Turner, Warner Bros. Launching New Movie

    Turner, Warner Bros. Launching Movie SVOD Service FilmStruck Internationally

    HOLLYWOOD — Blockbuster Entertainment posted a broadened third-quarter loss of $224.9 million on Tuesday as the homevid retailer took heavy charges for inventory management. The Dallas-based company, 82%-owned by Viacom, reported $19.3 million in red ink in the same period last year. Since then, Blockbuster has announced a campaign to eliminate about one-quarter of its […]

  • Liza Koshy - Liza On Demand

    Above Average Steers Focus to Original Comedy Series for TV, Digital Services

    HOLLYWOOD — Blockbuster Entertainment posted a broadened third-quarter loss of $224.9 million on Tuesday as the homevid retailer took heavy charges for inventory management. The Dallas-based company, 82%-owned by Viacom, reported $19.3 million in red ink in the same period last year. Since then, Blockbuster has announced a campaign to eliminate about one-quarter of its […]

  • snapchat-logo

    Snap Layoffs: 22 Staffers Gone Across Content Division, Other Teams

    HOLLYWOOD — Blockbuster Entertainment posted a broadened third-quarter loss of $224.9 million on Tuesday as the homevid retailer took heavy charges for inventory management. The Dallas-based company, 82%-owned by Viacom, reported $19.3 million in red ink in the same period last year. Since then, Blockbuster has announced a campaign to eliminate about one-quarter of its […]

  • ESL Pro League Dallas Winners

    Facebook Will Exclusively Stream 'CS:GO' Pro League Esports Events Previously on YouTube

    HOLLYWOOD — Blockbuster Entertainment posted a broadened third-quarter loss of $224.9 million on Tuesday as the homevid retailer took heavy charges for inventory management. The Dallas-based company, 82%-owned by Viacom, reported $19.3 million in red ink in the same period last year. Since then, Blockbuster has announced a campaign to eliminate about one-quarter of its […]

  • Fable Studio

    Former Oculus Story Studio Team Unveils New Company, Announces 4 VR Projects

    HOLLYWOOD — Blockbuster Entertainment posted a broadened third-quarter loss of $224.9 million on Tuesday as the homevid retailer took heavy charges for inventory management. The Dallas-based company, 82%-owned by Viacom, reported $19.3 million in red ink in the same period last year. Since then, Blockbuster has announced a campaign to eliminate about one-quarter of its […]

  • Twitch - Markiplier, Jacksepticeye, LuzuGames, Strawburry17

    Four Disney-Managed YouTube Stars Launch Twitch Channels

    HOLLYWOOD — Blockbuster Entertainment posted a broadened third-quarter loss of $224.9 million on Tuesday as the homevid retailer took heavy charges for inventory management. The Dallas-based company, 82%-owned by Viacom, reported $19.3 million in red ink in the same period last year. Since then, Blockbuster has announced a campaign to eliminate about one-quarter of its […]

  • Colin Decker

    VR Startup Within Hires Former Discovery Exec Colin Decker as Its New COO (EXCLUSIVE)

    HOLLYWOOD — Blockbuster Entertainment posted a broadened third-quarter loss of $224.9 million on Tuesday as the homevid retailer took heavy charges for inventory management. The Dallas-based company, 82%-owned by Viacom, reported $19.3 million in red ink in the same period last year. Since then, Blockbuster has announced a campaign to eliminate about one-quarter of its […]

More From Our Brands

Access exclusive content