Redbox revenue, operating income soar
Parent company Coinstar Inc. reported Thursday that Redbox revenue was $363.9 million in the three months ended June 30, up 34% from the same period a year ago. Operating income surged 99% to $74 million.
The company now has about 33,000 DVD kiosks, up from 31,800 three months ago.
It recently rolled out video game rentals to 21,000 kiosk locations (including some with multiple kiosks) and said Thursday that it will mix games in with DVDs at an additional 5,000 by Monday.
Last week Coinstar said that Redbox president Mitch Lowe was unexpectedly departing and gave an advance look at its financial results, which disappointed Wall Street. Its stock fell 8% the next day.
Its final results reported Thursday were in line with last week's preliminary numbers. Revenue for Washington-based Coinstar, which also operates coin-counting kiosks, grew 27% to $435.2 million. Net income doubled to $26.6 million.
Coinstar stock closed up 2% at $51.33 on Thursday before financial results were released.
-- Ben Fritz
Photo: Anja Murphy returns videos to a Redbox kiosk in an Albertsons supermarket in Santa Monica. Credit: Lawrence K. Ho / Los Angeles Times