By Sue Zeidler
LOS ANGELES, Aug 13 (Reuters) - Blockbuster Inc, the largest U.S. video rental chain, slashed its full-year earnings forecast in the face of intense competition from Netflix and others, and its shares fell 22 percent.
Blockbuster, which has been battling a move by viewers to the Internet, also posted a larger-than-expected quarterly loss and lower-than-expected sales and revenue on Thursday .
Blockbuster has hemorrhaged market share to online DVD rental leader Netflix Inc in past years.
It now expects full-year earnings before interest, taxes, depreciation and amortization to range between $270 million and $290 million.
That updated full-year adjusted EBITDA guidance is sharply lower than a previously forecast range of $305 million to $325 million.
Blockbuster's net loss for the second quarter applicable to common shareholders totaled $39.7 million, or 21 cents per share, compared with a net loss of $44.7 million, or 23 cents per share a year earlier.
Excluding items, Blockbuster posted a loss of $36.9 million or 19 cents share. On that basis, analysts had forecast a loss of 10 cents a share, according to Reuters Estimates.
Revenues slid 22 percent to $1.02 billion from $1.3 billion as same-store sales fell 17.8 percent.
Analysts on average had been expecting revenues of $1.1 billion for the quarter, according to Reuters Estimates. Michael Pachter of Wedbush Morgan Securities said he had forecast same-store sales to fall 8.5 percent in the quarter.
Blockbuster shares fell 22 percent to 67 cents in after-hours trade, versus a close of 86 cents.
The company is now making moves to expand its offering. Blockbuster has said it plans to have thousands of stand-alone DVD rental kiosks by year-end, in a move to challenge industry leader Redbox.
Owned by Coinstar, Redbox operates more than 17,000 locations.
(Editing by Edwin Chan and Carol Bishopric) Keywords: BLOCKBUSTER (susan.zeidler@thomsonreuters.com; +1 213 955 6748; Reuters Messaging: susan.zeidler.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
LOS ANGELES, Aug 13 (Reuters) - Blockbuster Inc, the largest U.S. video rental chain, slashed its full-year earnings forecast in the face of intense competition from Netflix and others, and its shares fell 22 percent.
Blockbuster, which has been battling a move by viewers to the Internet, also posted a larger-than-expected quarterly loss and lower-than-expected sales and revenue on Thursday .
Blockbuster has hemorrhaged market share to online DVD rental leader Netflix Inc in past years.
It now expects full-year earnings before interest, taxes, depreciation and amortization to range between $270 million and $290 million.
That updated full-year adjusted EBITDA guidance is sharply lower than a previously forecast range of $305 million to $325 million.
Blockbuster's net loss for the second quarter applicable to common shareholders totaled $39.7 million, or 21 cents per share, compared with a net loss of $44.7 million, or 23 cents per share a year earlier.
Excluding items, Blockbuster posted a loss of $36.9 million or 19 cents share. On that basis, analysts had forecast a loss of 10 cents a share, according to Reuters Estimates.
Revenues slid 22 percent to $1.02 billion from $1.3 billion as same-store sales fell 17.8 percent.
Analysts on average had been expecting revenues of $1.1 billion for the quarter, according to Reuters Estimates. Michael Pachter of Wedbush Morgan Securities said he had forecast same-store sales to fall 8.5 percent in the quarter.
Blockbuster shares fell 22 percent to 67 cents in after-hours trade, versus a close of 86 cents.
The company is now making moves to expand its offering. Blockbuster has said it plans to have thousands of stand-alone DVD rental kiosks by year-end, in a move to challenge industry leader Redbox.
Owned by Coinstar, Redbox operates more than 17,000 locations.
(Editing by Edwin Chan and Carol Bishopric) Keywords: BLOCKBUSTER (susan.zeidler@thomsonreuters.com; +1 213 955 6748; Reuters Messaging: susan.zeidler.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.