Analyst: Expect Update on Redbox President Search31 Jan, 2014 By: Chris Tribbey
Redbox parent Outerwall should have an update soon on its search for a new president, months after Anne Saunders left the kiosk operator, leaving Outerwall CEO J. Scott Di Valerio in charge of Redbox on an interim basis.
Saunders first joined Redbox in late August 2012, taking over for Gregg Kaplan.
“Outerwall also announced plans to reduce costs by approximately $22 million annually beginning in 2014, primarily through workforce reductions,” Michael Pachter, analyst with Wedbush Securities, wrote in a note to investors.
Outerwall had already announced it was discontinuing three of its new ventures, Rubi, Crisp Market and Star Studio, with closures for all three expected to finish by the end of the quarter.
Outerwall reports its fourth-quarter results Feb. 6 when the markets close. The company is forecasting revenue between $583 million and $608 million.
“In December, Outerwall is likely to be upbeat in its first-quarter and full-year 2014 guidance given the strong performance of the fourth-quarter 2013 box office,” Pachter wrote. “Fourth-quarter 2013 domestic box office ended up 0.8% year-over-year from a crowded release slate in December. At the end of November we were expecting the quarter to be down slightly due to weak showings in the first two months of the quarter. Most Q4 films arrive at Redbox in late Q1 or early Q2.”