Earnings Rise 25% at Blockbuster

Blockbuster's(BBI Quote) third-quarter earnings topped analysts' estimates, despite weaker revenue amid fierce competition in the movie-rental business.

The world's largest DVD and video game rental chain said cost-cutting helped it post a 25% rise in profit. Net income increased to $63.7 million, or 35 cents a share, from $51 million, or 28 cents a share, in the previous year. That beat Wall Street earnings forecasts of 32 cents a share, according to Thomson First Call.

Revenue dropped to $1.38 billion from $1.39 billion in the year-ago period. Wall Street had expected a rise to $1.47 billion. Rental revenue decreased 2.4% to $1.10 billion, compared with $1.12 billion in the previous year. Same-store sales fell 7.5% worldwide. ...