Movie Gallery Inc., the new owner of Hollywood Video and Game Crazy North American retail chains, has released its financial report for the second quarter of its 2005 fiscal year. The second-quarter earnings are based on the entire quarter for Movie Gallery and 10 weeks of Hollywood Video earnings, which the company purchased in April 2005.
Total revenue for the quarter was $504.7 million, an improvement over Movie Gallery's standalone revenue of $189.6 million in Q2 2004. However, due to a variety of merger-related costs and one-time fees totaling $16.4 million, the company suffered a net loss of $12.2 million overall.
"Coming into the quarter, we were expecting our same-store revenues to be down slightly," said Movie Gallery CEO Joe Malugen. "However, with the month of June down considerably more than anticipated, we experienced a 5.5 percent decrease in same-store revenues for the second quarter of 2005."
The company has also enacted 50 of the planned 51 closures
of unprofitable Game Crazy video game retail stores. Work is underway to re-brand the 23 Game Zone stores in the company's portfolio to Game Crazy, a more recognized name.