B’buster sees mixed 2nd qtr.

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.

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