The company is now revising its full year financial targets. Shares in the company fell by 11% following the news. The company is finding it hard to compete with services online including Netflix which are gathering thousands of more users weekly. Blockbuster also admitted that some of the 9,000 stores worldwide may have to be closed. "As the decline in store-based video rental industry continues, stores will have to close," chief executive John Antioco said.
In the same quarter last year, Blockbuster announced a $48.6M profit. However the company has insisted it will return to profitability in 2006.
Source:
BBC News
Written by: James Delahunty @ 10 Aug 2005 20:46