DVD rental chain Blockbuster UK profits slumped from £4.6m to £1.7m in the year to January 2.

Sales fell from £263m to £231m at the business, whose US parent filed for bankruptcy this year, before being rescued by US pay-TV provider Dish Network.

At the time, the UK arm’s boss Martin Higgins insisted the bankruptcy would not affect the UK business, which operates 600 stores.

In documents filed at Companies House, Blockbuster said it was able to achieve profit through tight cost control, selective store closures and margin improvements “where possible”.

It said that in three of the four quarters, profitability grew year-on-year. However, it said that Blockbuster was “very badly affect” by the World Cup in 2010, as Brits opted to watch football games instead of films.

Blockbuster has suffered in the wake of rising etailers including Amazon and iTunes, which now offers a movie rental service.