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DVDs Boost Blockbuster Earnings

Time: 05:47 EST/10:47 GMT | News Source: Reuters | Posted By: Matthew Sabean

Blockbuster Inc. , the largest video rental chain, said on Tuesday its fourth-quarter earnings excluding charges soared 67 percent, beating Wall Street expectations, as the growing appeal of DVDs boosted profit margins.

The company, which has almost 7,900 stores worldwide, forecast higher 2002 sales at outlets open at least a year, boosted by releases of mega-hit titles like "Harry Potter (news - web sites) and the Sorcerer's Stone" in the second quarter. Blockbuster, a unit of entertainment giant Viacom Inc. , also projected a strong rise in video game rentals through 2003.

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