Nov 1, 2007 9:50 am US/Central
Blockbuster 3Q Loss Widens As Company Plans Cuts
Job Cuts Part Of Reducing Overhead Costs, Company Reps Say
DALLAS (AP) ―
Blockbuster Inc.'s third-quarter loss widened, partly on severance and lease termination costs, and the movie-rental company said it is planning job cuts to boost profitability.
Blockbuster reported a loss after preferred dividends of $37.8 million, or 20 cents per share, compared with a loss of $27.5 million, or 15 cents per share, in the prior year.
Loss from continuing operations grew to $34.8 million, or 20 cents per share, from a loss of $23 million, or 14 cents per share last year.
Analysts polled by Thomson Financial predicted a loss of 18 cents per share. Analysts' estimates typically exclude one-time items.
The current quarter's results included $9.6 million, or 5 cents per share, in severance and lease termination costs.
Quarterly revenue dropped 5 percent to $1.24 billion.
Consensus estimates put sales at $1.28 billion.
The company said it has implemented a plan to lower yearly overhead costs by about $45 million through job cuts and the elimination of operational redundancies. Blockbuster also is considering outsourcing some corporate functions.
The company said it plans to report total membership numbers in the future rather than just its online subscriber count.
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