Coinstar Grows Revenue, Profit on Redbox Gains in Q226 Jul, 2012 By: Chris Tribbey
Coinstar July 26 reported revenue of $532.2 million and a profit of $36.9 million for the second quarter of 2012, both significant increases from the previous year largely thanks to gains at kiosk disc rental company Redbox.
In the second quarter of 2011, Coinstar reported revenue of $435.2 million and a profit of $26.7 million.
“Redbox began its expansion into Canada, extended its lead in physical rentals achieving more than 42% unit market share, and closed the NCR transaction." said Coinstar CEO Paul Davis.
Redbox revenue grew 26% to $458 million, thanks to new kiosk installations and same-kiosk sales growth.
“Our performance across the board once again underscores the strength of our business, as we drive profitable growth and generate free cash flow while continuing to invest in our future,” said J. Scott Di Valerio, CFO for Coinstar. “We have the talent and resources to increase our Redbox footprint in the U.S. and Canada, expand the rollout of Rubi, support Redbox Instant by Verizon and our new ventures concepts, while we continue investing in our systems and infrastructure.”
For the full fiscal year Coinstar is expecting revenue of between $2.2 billion and $2.3 billion.
During a conference call with investors, Davis said Redbox now has a 42.5% share of the rental market, up 8% from the second quarter of 2011. He also noted that there will be 23% fewer DVD titles released during the third quarter compared with the same quarter in 2011, but expected titles like Lionsgate’s The Hunger Games and The Lorax from Universal Studios Home Entertainment to carry Redbox profits.
Davis offered no new details regarding Redbox Instant, the joint venture with Verizon, which will combine streaming content via broadband along with discs at kiosks.
Redbox now has 38,500 kiosks operating nationwide.