Increased revenues from growth in Blockbuster Online’s subscriber base partially offset a 7.7% decrease in first quarter sales, leaving Blockbuster Inc. with a Q1 net loss of $1.9 million, an improvement from a $57.5 million net loss a year earlier, the retailer reported today.
Blockbuster does not break out online sales, but reported that the Blockbuster Online subscriber base totaled 1.3 million the end of the first quarter, up 63% from 800,000 a year ago. Blockbuster, No. 298 in the Internet Retailer Top 400 Guide to Retail Web Sites, said it expects to meet its goal of 2 million online subscribers by year-end.
Q1 revenues dropped to $1.43 billion from $1.55 billion in 2005’s first quarter, due to a reduction in revenues from lower margin retail sales, a 236-store decline in the company-operated store base, and less advertising and promotional activity.
Worldwide same-store rental revenues for the first quarter dropped 0.7%, reflecting a 2.1% increase in domestic same-store rentals and a 9% decline in international same-store rentals. Worldwide, same store rental revenues for the first quarter declined 16.2% year over year.
“Our first quarter 2006 results reflect the actions we have taken to improve our overall profitability and cash flow,” said John Antioco, chairman and CEO. “For the first time in three years, we saw an increase in domestic same-store rental revenues and we believed that our combined in-store and online rental offering will allow us to further increase our market share and outperform the domestic rental industry in 2006.”
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