Digital News Report – Blockbuster Inc. (BLOKA;BLOKB) reported their 2nd quarter earnings for 2010 had a net loss of $69 million. Blockbuster reported 2nd quarter total sales at $788 million, which was $194 million less than last year at the same time period, which was $982 million in total sales.
The loss in the 2nd quarter of 2010 has been attributed to the company operated store closures and from decline in same-store sales. They also had liquidity issues relating to recapitalization initiatives and lease termination costs.
Blockbuster has a new Forebearance Agreement with some of its senior secured noteholders that is effective until September 30, 2010. This will allow time for Blockbuster and the noteholders to continue discussing recapitalization opportunities for the company. More time will allow Blockbuster time needed to put together a better capital structure in hopes to improve their financial earnings and their long-term growth efforts.
Blockbuster has recently worked on being more competitive in the DVD movie rental business by offering new releases 28 days before their competitors. Blockbuster has a new partnership going to launch with Comcast that will promote their by-mail rental service to these cable TV customers. Blockbuster will continue to install around 6,000 automated retail rental Blockbuster Express vending machines that will be managed by NCR. Blockbuster will be working with Verizon Wireless’ Droid X by Motorola, and with some of Philips and Toshiba Blu-ray players to deliver Blockbuster On Demand rental services.
By: Victoria Brown