Blockbuster won't pay dividend
Sep. 03, 2005
Blockbuster won't pay dividend
CHICAGO -- Blockbuster
Inc. on Friday said it will not pay a dividend for the third
quarter, the first time it has failed to do so since the largest U.S.
video rental chain operator went public in 1999. The decision, made by
the company's board, is the latest sign of financial difficulty at
Blockbuster and sent shares down 5%, to a new all-time low. The company,
which posted a $57.2
million loss in the second quarter, has suffered because of weak
demand for new releases and a changing market where many opt to buy
movies from low-price retailers like Wal-Mart Stores Inc. Blockbuster
paid a quarterly dividend of 2 cents a share on June 20. At that rate,
the company will save about $3.7 million by not paying the third-quarter
dividend, based on 183.7 million average shares outstanding in the
second quarter.
(Reuters) |
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