Vidtailer giant still battling online competish
Blockbuster turned in a mixed second quarter as the company saw a profit of $65.6 million as a result of a tax benefit but watched revenue slide 5% to $1.32 billion.
Profit number fell short of analyst expectations, and vidtailer would have endured a loss if not for a $91 million gain as part of a tax settlement. Stock dropped 12% on the news.
Company did jump same-store rentals — an important metric — by 4%, but real battleground continues to be online subscribers.
Netflix revealed it was burned by churn earlier this week, but Blockbuster’s online division didn’t fare much better: Company gained only 100,00 Web customers in the period and stills trails Netflix by nearly 4 million subs.