Redbox Revenue Up, Coinstar Profit Down7 Feb, 2013 By: Chris Tribbey
Redbox parent Coinstar posted a profit of $22.9 million for the fourth quarter of 2012 (ended Dec. 31), a drop of more than 27% from the same quarter in 2011 ($31.5 million).
The fall came despite an 8.4% jump in revenue year-over-year ($564 million vs. $520 million). Coinstar said the profit decline was due to operating results from kiosks acquired as part of its $100 million acquisition of NCR Corp.’s entertainment division, which included 10,000 kiosks previously operating under the Blockbuster Express brand.
“We are pleased with our performance in 2012, which drove annual revenue of more than $2 billion for the first time,” Coinstar CEO Paul Davis, said in a press release. “Our ongoing commitment to creating value for our consumers, our partners and, ultimately, our shareholders drove substantial progress on several growth initiatives that we outlined at the beginning of 2012, including Redbox Instant by Verizon, the launch of the Redbox Tickets pilot, Rubi coffee kiosks and our expansion into Canada.”
Redbox revenue for the fourth quarter grew 9.6% to $488.3 million. For the full year 2012, Coinstar posted revenue of $2.2 billion, up 10.3% from 2011.