Coinstar's 1Q earnings drop as Redbox growth slows

April 25, 2013

(AP)—Coinstar's first-quarter earnings plunged 58 percent amid signs that its Redbox kiosks for DVD rentals are losing their appeal as more people switch to Netflix and other Internet video services.

The results announced Thursday still turned out better than analysts anticipated, despite Redbox's slowing revenue growth. That was enough to lift Coinstar Inc.'s 6 percent in aftermarket trading.

The company, which is based Bellevue, Wash., also disclosed plans to change its name to Outerwall. Management believes the new identity underscores the company's ambitions to push "the walls of retail into a new dimension."

Coinstar earned $23 million, or 78 cents per share, during the first three months of the year. That compares with $54 million, or $1.65 last year.

Revenue edged up 1 percent from last year to $575 million. Costs grew about 8 percent to $526.8 million.

Explore further: Paramount in trial deal to supply DVDs to Redbox

0 shares

Related Stories

Paramount in trial deal to supply DVDs to Redbox

August 26, 2009

(AP) -- Movie studio Paramount Pictures is following the lead of Lions Gate Entertainment Corp. and Sony Corp. by agreeing to supply films to $1-per-night DVD rental kiosk company Redbox.

Coinstar's 3Q earnings soar, Redbox prices to rise

October 27, 2011

(AP) -- Redbox's DVD rental kiosks are attracting movie lovers fed up with Netflix's video subscription service. But now Redbox's owner, Coinstar Inc., is risking its own customer backlash by raising its prices, the same ...

Netflix customers return in 4Q; stock soars 16 pct

January 25, 2012

(AP) -- Netflix has regained almost as many customers as it lost following an unpopular price increase, signaling that the video subscription service is healing from its self-inflicted wounds.

Verizon to set up streaming service with Redbox

February 6, 2012

Challenging Netflix, phone company Verizon Communications Inc. says it will start a video streaming service later this year in cooperation with Redbox and its DVD rental kiosks.

Coinstar's stock soars on strong 4Q for Redbox

February 6, 2012

(AP) -- Coinstar's fourth-quarter earnings soared past analyst estimates as the company's Redbox kiosks for renting DVDs picked up customers who stopped getting their discs through Netflix's rival service.

Expedia posts 1Q loss; says revenue rose 24 pct

April 25, 2013

Online travel agency Expedia Inc. is reporting a larger loss in the first quarter as its stock-based compensation, legal reserve and depreciation costs surged compared to a year ago. But its adjusted revenue and income surpassed ...

Recommended for you

Netherlands bank customers can get vocal on payments

August 1, 2015

Are some people fed up with remembering and using passwords and PINs to make it though the day? Those who have had enough would prefer to do without them. For mobile tasks that involve banking, though, it is obvious that ...

Power grid forecasting tool reduces costly errors

July 30, 2015

Accurately forecasting future electricity needs is tricky, with sudden weather changes and other variables impacting projections minute by minute. Errors can have grave repercussions, from blackouts to high market costs. ...

Microsoft describes hard-to-mimic authentication gesture

August 1, 2015

Photos. Messages. Bank account codes. And so much more—sit on a person's mobile device, and the question is, how to secure them without having to depend on lengthy password codes of letters and numbers. Vendors promoting ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.