NEW YORK (Fortune) -- Blockbuster Inc. is like a slasher-flick villain that just won't die. In spite of what appear to be deep and devastating blows to its business - the rise of Netflix and mail-order movie rentals, in-home use of DVRs and video-on-demand via cable, and Apple's recent introduction of online film rentals - Blockbuster adapts and lumbers onward.
Part of that adaptation was evident this morning, when Blockbuster (BBI, Fortune 500) announced that its fourth quarter profit grew nearly 360 percent, thanks to aggressive cost cutting and the repositioning of some of its subscription offerings. The movie rental and retail company's quarterly earnings grew from $8.3 million (or 4 cents per share) in the last three months of its 2006 fiscal year to $38.1 million (or 18 cents per share) in the quarter just ended. The company said revenue increased 4 percent compared to the same period a year ago, to $1.44 billion.
Blockbuster shares were up as much as 3.4 percent in morning trading. But by noon, shares had settled about 1.3 percent below this morning's $3.25 opening price.
The Dallas, Texas-based movie rental and retail company operates over 6,000 stores in the United States and around the world. In recent years, the business has undergone a transformation, expanding its offerings beyond in-store VHS, DVD, and video game rentals. The company now operates a combination mail-order and online movie rental business, which has been further enhanced by the company's acquisition of Movielink last August.
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