Global Axcess Narrows Rental Kiosk Loss17 Aug, 2011 By: Erik Gruenwedel
ATM operator Global Axcess Corp. reported a second-quarter (ended June 30) pre-tax operating loss of $113,000 on its disc rental kiosk business. The loss represented a 58% improvement on a pre-tax loss of $268,000 during the previous-year period.
Jacksonville, Fla.-based Global Axcess operates 5,300 ATMs and movie rental kiosks in 43 states — the latter primarily at supermarkets and grocery stores.
Revenue for the kiosk business remained unchanged at $2 million.
During the quarter Global relocated 115 underperforming disc rental kiosks from supermarkets to The Exchange military locations throughout the country.
The company expects disc revenue to increase in the second half of the year with the release of stronger box office titles and relocation of underperforming rental kiosks.
“The outlook is based on the ongoing transition of 115 DVD kiosks from our grocery customer,” CFO Michael Loiacono said in a statement. “We expect positive contribution during the fourth quarter from the installation of these kiosks in preferred locations at The Exchange. This transition is expected to help us grow both revenue and [pre-tax earnings], and while this initiative is underway, we expect to remain profitable.”