Rental chain reports $57.2 million net loss.
Blockbuster today (Aug. 9) reports a $57.2 million net loss and a 1.6% total revenue decrease for the second quarter. The rental chain's stock fell about 10% to $7.22, from $8.01 at the end of Monday.
Total revenues in the second quarter were $1.4 billion, compared to $1.42 billion in the second quarter of 2004. Last year's second quarter experienced a net income of $48.6 million.
The elimination of rental fees under the "No Late Fees" program this year led to the loss of about $140 million in the second quarter; extended viewing fees were about 15% of total revenues during the second quarter of 2004.
Total rental revenues were down 5.2%, from $1.08 billion to $1.02 billion, while total retail revenues increased 11.5% to $360.4 million from $323.2 million.
Blockbuster also says that its Blockbuster Online service now has more than 1 million members, and more than 2 million are expected to be subscribers by the first quarter of 2006.
The company further announced today that it is increasing the price of its Blockbuster Online plans. The three-movies-out rental plan is now $17.99 per month, up from $14.99; the five-movie plan is now $29.99, up from $27.49; and the eight movies plan is $47.99, from $37.49.
The new $17.99 standard price for the three-movie plan will apply to all new customer and customers who started subscribing on or after March 1 of this year. Those who signed up for the plan in January or February are guaranteed the $14.99 rate through Jan. 31, 2006.