Andre Yoskowitz
1 Nov 2007 18:56
Blockbuster has announced their financial statement for the Q3 in which the company saw total revenues decreasing by 5.7 percent to 1.24 billion USD. The net loss was 35 million USD as compared to a net loss of 24.7 million USD for the same period in 2006.
The company blamed the decrease in revenue on the closure or sale of 526 separate stores but did say they had seen an increase in revenue from its online rental service.
"We believe the actions we have taken over the last quarter have better positioned Blockbuster for the future," said Jim Keyes, Blockbuster's chairman and CEO.
The Blockbuster management has plans to "reduce annualized overhead costs by approximately USD 45 million through the elimination of staffing and operational redundancies in their in-store and online corporate support structure and through improvements in other operating efficiencies" and has already begun implementing the plan.
"Going forward, we are focused on protecting our core rental business, developing new retail opportunities, and becoming the preferred provider of digital entertainment," Keyes said.
Over 20 million customers worldwide used Blockbuster during the Q3 2007 with over 3 million using the online service.
Source:
GI.biz