Blockbuster's Q2 loss widens

Fri, 08/13/2010 - 8:05am
The Associated Press

DALLAS (AP) – Movie rental chain Blockbuster Inc., which has been trying to avoid filing for bankruptcy protection amid tough competition from rivals like Netflix Inc., said Thursday its second-quarter net loss widened.

The company also said it agreed to a new forbearance agreement with debt holders that will give it more time as it seeks to recapitalize.

The quarterly net loss widened to $69 million, or 32 cents per share, from $37 million, or 21 cents per share, last year.

Revenue for the quarter ended July 4 slipped 20 percent to $788 million from $982 million last year.

On average, analysts surveyed by Thomson Reuters forecast a quarterly loss of 24 cents per share and revenue of $840.1 million.

Blockbuster said quarterly results were hurt by the closure of company-operated stores, lower revenue in stores open at least a year and "liquidity issues," including costs related to its recapitalization efforts and lease-termination costs.

Blockbuster has tried to revamp its offerings due to tough competition in the movie-rental sector. In August, it launched a service with Comcast to offer DVDs by mail. It also offers video games by mail.

Blockbuster, based in Dallas, said its new forbearance agreement with senior secured note holders is effective until Sept. 30.

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