Blockbuster Has Strong Fourth Quarter
Blockbuster reported fourth quarter net income of $41 million, or 18 cents a share for 2007. Compared with $11.2 million, or four cents a share the year before.
Not including charges, per share earnings increased to 26 cents from 11 cents. Revenue grew 3.6 percent to $1.57 billion. Analysts polled by Thomson Financial had expected earnings of 18 cents per share or revenue of $1.4 billion.
"The year 2007 was one of transition for Blockbuster. During the last half of the year, we established financial stability and took decisive steps to grow our rental business, diversify revenue streams and broaden channels of distribution," said Jim Keyes, Blockbuster Chairman and CEO.
"Most notably, through aggressive cost reductions, the repositioning of our subscription programs, and a renewed focus on store merchandising, we gained momentum in both sales and earnings. Building on our fourth quarter growth in year-over-year revenues and improvement in operating income, we are well positioned to return the Company to profitability in 2008."
Blockbuster projects 2008 net income of $5 million to $25 million, while analysts estimate a $6.83 million loss.