Movie Gallery anticipates a soft fourth quarter due to a weakness in popular DVD releases and the maturation of game platforms.

Movie Gallery anticipates a soft fourth quarter due to a weakness in popular DVD releases and the maturation of game platforms.

According to a company statement, its revenues this fourth quarter will be between $675 million and $705 million and same-store revenues will decrease 5-9% compared to the fourth quarter of 2004.

Movie Gallery chairman, president and CEO said that "the market weakness we are currently experiencing has been more severe and longer lasting than anticipated. In response, we have taken, and will continue to take, decisive action to reduce our cost structure, leverage the company's purchasing power and streamline the organization to drive improved earnings."

The chain will continue testing a DVD vending machine program to extend its business, and hopes to deliver the concept to grocery and convenience stores.

The announcements come with yesterday's (Nov. 10) release of the chain's third quarter financial results.

In the third quarter, the combined Movie Gallery and Hollywood Entertainment chain (which is a wholly-owned subsidiary of Movie Gallery) experienced a net loss of $12.5 million compared to the third quarter of 2004.

Same-store total revenues declined 9% compared to last year's third quarter.

Same-store rental revenues declined 10.3%, and same-store sell-through revenues declined 2.2%.

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