InCapta Inc (INCT)

[digitick]

Interesting. Over the summer, I had heard that the Online business wasn't doing well. I suppose I should have done more than simply skim those documents. :)

I did find this interesting tidbit:

"In addition, our online subscription services require considerable ongoing investments in order to increase our subscriber base and implement our plan to fulfill BLOCKBUSTER Online orders from our stores. Since its launch in August 2004, BLOCKBUSTER Online has built a subscriber base of more than one million subscribers. Additionally, we began fulfilling some BLOCKBUSTER Online orders from certain company-operated and franchise store locations in the second quarter of 2005 and continued to expand this fulfillment process during the third quarter of 2005. If we are unable to integrate our in-store and online capabilities fully, our gross margin will be adversely impacted because we will be required to purchase more product to support our online operations. Both our plan to fulfill BLOCKBUSTER Online orders from our stores and our goal of increasing our online subscriber base require significant investment and, as a result, we estimate that BLOCKBUSTER Online will cost us up to $120 million in operating income and significant capital expenditures in 2005 and we may incur additional costs in the future. We cannot assure you when BLOCKBUSTER Online will become profitable."

To me, that doesn't sound to rosey, though the real "meat" may be disclosed in a different section.