Shocking absolutely no one, Blockbuster today announced a net loss of $65.4 million in the first quarter of 2010, compared to a profit of $27.7 million in the same period last year. BB’s revenue dropped 13% to $939.4 million and same-store sales dropped 7.1%.
Update: Blockbuster shares dropped 20% after the news broke, falling to 39 cents per share in after hours trading
Blockbuster’s CEO, Jim Keyes, said the following about the results:
“It was certainly a challenging quarter, given the continued challenges we face as a company with liquidity and very aggressive competition,”
Saying that “freshness is important in movies,” Keyes touted the exclusive new release deals that Blockbuster recently signed with several studios as “crucial steps in achieving a brighter future for the company.”
How long can Blockbuster cling to its “new release exclusivity” lifeline? How much longer before people are picking the shelves of their local BB clean during a liquidation sale similar to the ones currently taking place at Movie Gallery/Hollywood Video locations?
(via Dallas News)