Thursday, August 11, 2005

Blockbuster Cites Movie Rental Malaise

Shares in Blockbuster tumbled last week to historic lows after the company reported that its Q2 revenue decreased 1.6% to $1.40 billion from $1.42 billion for the second quarter of 2004. Net loss for the second quarter of 2005 totaled $57.2 million, or $0.31 per share.

Blockbuster said its new online movie rental business is starting to show results, but that it is feeling "the impact of the
declining store-based video rental industry."

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