Movie and entertainment retailer Blockbuster Inc has posted a net loss for the second quarter ended July 5 that narrowed to $39.7 million or 21 cents a share as compared with a net loss of $44.7 million or 23 cents a share for the same quarter in the previous year.

Revenues slipped to $1.02 billion, down 22% and missed analysts' projection of $1.12 billion. On excluding certain items, the company suffered a loss of 19 cents a share, more than analysts' expectation of 12 cents a share.

Dallas-based company held cut-throat competition in the DVD rental market responsible the loss.

Revenue from rentals dropped 19% to settle at $789.2 million.

Blockbuster Inc faced 17.8% fall in domestic same-store sales, a 7.1% fall in domestic retail same-store sales and a 14.7% drop in global same-store sales.

James Keyes, CEO of the company said, "We believe our time and our resources are better deployed building the infrastructure that will allow us to compete more effectively over the long term."

It may be noted here that Blockbuster has locked its as many as 276 stores up to now in the current year. Still, the company is operating 7,129 stores globally.

In the after-hour trading Blockbuster shares plunged 22% to 68 cents.