Analyst: Redbox Looking Forward to Strong Second Half1 Jul, 2013 By: Chris Tribbey
If box office results are any indication, the slate of DVD titles set for the second half of 2013 should significantly boost Redbox’s revenue, according to an analyst report.
B. Riley & Co. analyst Eric Wold wrote in a note to investors that movies slated for disc release in the third quarter show a 14% box office increase, compared with the third quarter of 2012, and fourth quarter titles are showing a 23% box office increase.
“When combined with additional capacity in the kiosks, new [customer relationship management] software and marketing support from Redbox Instant, we continue to believe the second-half visitation and rental trends are gearing up to at least meet guidance (which would actually exceed expectations),” Wold wrote.
Wold estimates overall disc releases for the third quarter will be up slightly, while releases for the fourth quarter could decline by as many as four titles.
Wold noted that the London Olympics were a major factor in Redbox’s second half results in 2012, with studios choosing to delay releases into the fourth quarter and consumers choosing delayed games on TV versus renting discs.