Some of the loss is accounted for by charges of US$1.5 billion (£819.3 million) on the impairment of goodwill and other assets. Excluding the charges, the company earned US$3.4 million (£1.9 million).
Rental revenue at stores open for more than a year declined 6.3 per cent, as a result of slowdown in demand during the Olympic Games and a weaker economy. Overall retail revenue surged 26 per cent to US$333 million (£181.9 million) from US$263.8 million (£144.1 million).
Earlier this year, media conglomerate Viacom demerged Blockbuster, which faces competition from DVD sellers and on-demand cable movie services.