Revenues Continue Falling at Blockbuster

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DVD rental chain Blockbuster has seemingly been on life support for years now ... first making the switch from VHS to disc, then surviving Netflix's market-changing success and now facing the disappearance of physical media altogether.

But time may have run out for Blockbuster. On Thursday the chain reported that revenues had slipped some $270 million between the first quarters of 2008 and 2009, and that net income of was down to $27.7 million in Q1 compared to $45.4 million this time last year. Operating expenses were down over $130 million year-to-year in the quarter, but gross profit fell from $741.7 million to $590.7 million in the same time period.

Perhaps worst of all, Blockbuster reported that its same-store sales, a key retail metric, decreased 10.9 percent in the quarter, compared to a 2.9 percent increase in Q1 '08.

But hey, at least the company got that $250 million credit facility set up, right? That should keep things going for another few quarters at least.