Antioco
Viacom-owned video rental giant Blockbuster finished out the year redeeming itself from fears of imminent obsolescence with a solid fourth-quarter revenue rise of 17% to $1.58 billion over last year and a tidy net profit of $30.7 million compared to a loss of $4.5 million for the same period in 2001 (which included a $26 million charge to VHS inventory).
The fiscal breath of fresh air and promise of 20% profit growth in 2003 boosted the vidtailers' share price more than 10% Tuesday, despite the fact the numbers came in slightly under analysts' consensus estimates.
While noting the difficult marketplace during the holiday season, Blockbuster said the momentum had returned to its business after Christmas "and has continued into the first quarter, supporting our belief that the market dynamics of the fourth quarter were an anomaly," according to chairman and CEO John Antioco.
For the full year, the company reported a net loss of $1.63 billion, compared with a 2001 net loss of $240.3 million, including more than $250 million in non-cash charges..
Full-year revenue increased 7.9% to $5.57 billion from $5.16 billion in 2001.
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