Movie rental chain Blockbuster Inc on Tuesday posted a quarterly loss that was more than double Wall Street's forecast as lackluster new video releases failed to attract consumers.
The largest US home video and DVD rental company also said it was no longer on track to meet its 2005 financial forecast and said it has reached an agreement with creditors to waive certain debt covenants for the second and third quarters. Without the waiver, the company would have been in default, Blockbuster said.
Blockbuster posted a loss of $57.2 million, or 31 cents a share, for the second quarter, compared with a profit of $48.6 million, or 27 cents a share, a year earlier.
Excluding severance costs, asset impairment charges and stock-based compensation, the loss was 22 cents a share.
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