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  #1  
Unread November 6th, 2012, 10:00 AM
SpiceCake SpiceCake is offline
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Blockbuster Posts $11.9M Third-Quarter Loss

I'm sure that someone will claim that these kinds of results are all an expected part of Dish's plan, but how many more losses can a company post before somebody actually admits that they're a bad thing? Here's the article:

Blockbuster Posts $11.9M Third-Quarter Loss

Higher inventory costs and lower revenue undermine rental chain

Blockbuster LLC Nov. 6 reported a third-quarter (ended Sept. 30) operating loss of $11.9 million compared to operating income of $3.6 million during the previous-year period.

Denver-based Blockbuster, which is owned and operated by Dish Network, generated revenue of $231 million compared to $347 million in revenue last year.

The rental chain attributed the operating loss primarily to lower monthly revenue and higher inventory costs per rental disc relative to the fair value of the inventory costs per rental disc acquired in the Blockbuster acquisition.

In other words, when Dish acquired Blockbuster out of bankruptcy in April 2011, it paid $238 million for the brand, inventory and related assets. The cost of replacing the inventory (i.e. new releases, etc.) has risen resulting in higher inventory costs combined with lower revenue generated as consumers rent movies from alternative sources – notably Redbox kiosks.

Blockbuster operated 850 stores nationwide at the end of the quarter after shuttering 700 stores through the first three months of the year. Parent Dish said it could close additional stores going forward.

For the first three quarters, Blockbuster operations contributed $818 million in revenue with an $11 million operating loss compared to $601 million in revenue and $14 million in operating income during the same period last year.

“We continue to evaluate the impact of certain factors, including, among other things, competitive pressures, the scale of our Blockbuster retail operations and other issues impacting the store-level financial performance of our Blockbuster retail stores,” Dish said in a statement disclosed in the Nov. 6 regulatory filing.

Meanwhile, Dish narrowed net subscribers losses in quarter to 19,000 compared to 111,000 net losses during the same period last year. The decline was primarily due to the popularity of Dish’s controversial Hopper set-top box and digital video recorder. The latter features the AutoHop ad-skipping feature for recorded network programming which is at the center of separate litigation between Dish and broadcast networks.

The satellite TV operated reported a net loss of $158 million compared to income of $319 million last year. The loss was primarily due to $730 million in litigation expenses related to the Voom case with AMC Networks and higher subscriber-related expenses from higher programming costs and increased advertising associated with Hopper.

Source: http://www.homemediamagazine.com/blo...ter-loss-28796
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  #2  
Unread November 6th, 2012, 01:51 PM
sarge sarge is offline
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They expected the loss with all the new stores they are opening......whoops. My bad!
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inkedangel (November 6th, 2012)
  #3  
Unread November 6th, 2012, 02:02 PM
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Dish is going down!!!!!!!!!
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  #4  
Unread November 6th, 2012, 03:14 PM
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Really not a huge surprise. The thing I am surprised about is everyone says there are 950 stores but this says 850. And also not a big surprise that more stores are going to close. If they were doing so horrible last year but posting profits, kinda funny they tanked this year after closing all those "unprofitable" stores at the beginning of the year. I do feel for the people who are going to be in those stores that are closing.... that are going to be fed the line that they are looking for smaller storefronts to make their location profitable. The stores won't be moving, they will just close.
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  #5  
Unread November 6th, 2012, 03:30 PM
orbitdvd orbitdvd is offline
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But there's new locations in Colorado!

I don't think 4th quarter has been kind to Blockbuster in many years.
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  #6  
Unread November 7th, 2012, 02:31 PM
PickleBundle PickleBundle is offline
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All part of the brilliant Master Plan- Everyone knows that Blockbuster is still "America's Number One Entertainment Choice"... (eyeroll).
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  #7  
Unread November 7th, 2012, 02:32 PM
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Originally Posted by PickleBundle View Post
All part of the brilliant Master Plan- Everyone knows that Blockbuster is still "America's Number One Entertainment Choice"... (eyeroll).
especially with the tax hit jan. 1st that can kill any company.
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Even the Devil, which is the main share holder of blockbuster is saying you guys are making me look bad!

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  #8  
Unread November 7th, 2012, 06:31 PM
SpiceCake SpiceCake is offline
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This is hilarious. In what could be considered a "follow-up" article to the one I posted earlier, it is reported that Dish CEO Joe Clayton insistent on predicting a resurgence in BB's business:

“I believe that we are properly positioned to capitalize on a seasonably stronger fourth quarter,” Clayton told the magazine. “We'll also have a deeper inventory and high-impact titles that will be released during the fall selling season. This has been accomplished by negotiating improved trading terms with most of our studio partners.”

Link: http://www.homemediamagazine.com/blo...ckbuster-28796

You have to be kidding me. If this was any other business that had been performing this dismally for so long and was faced with an equally bleak future, any reasonable executives would read the writing on the wall, so to speak, and liquidate their inventory (e.g., the Circuit City downfall and liquidation).

It seems that, instead of having good reason to believe that brick-and-mortal retail stores are the future of the movie/game rental business, it's actually the other way around -- they think that the future of movie/game renting SHOULD be with brick-and-mortar stores. Are the headaches of insisting on continuing to operate the remaining BB stores for the purpose "just because" really worth the money they're losing every quarter? Even if they post another $3-4 million dollar profit like they did last year, is a couple million dollars really worth all the trouble to a company that earns billions?

It almost seems like Dish is run by a bunch of out-of-touch old farts who are nostalgic for the glory days of VHS renting and just want the experience of running a chain of video stores.
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  #9  
Unread November 7th, 2012, 09:11 PM
KAWLIGA KAWLIGA is offline
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I like Spice Cake.
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  #10  
Unread November 8th, 2012, 08:54 AM
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I like Spice Cake.
As usual, your post are dumb....
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