Blockbuster's net income has more than tripled in the fourth quarter. The movie-rental company said 2007 was a year of “transition” as it slashed costs and made changes to its online service that competes with Netflix. The company said it expects to return to profitability in 2008 — forecasting net income where analysts had seen a loss.
Blockbuster Chief Executive James Keyes has been attempting to refocus the business through new initiatives, including shedding unprofitable customers by raising prices on its online proposition. Blockbuster also has improved the availability of titles and added more merchandise for sale in its stores, including movies and videogames. The company expects 2008 net income of $5 million to $25 million.