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April 18, 2012
Coinstar, operator of top kiosk video rental outlet Redbox, is set to announce the results for its first fiscal quarter of 2012 on 26 April. The company announced preliminary results on 12 April and said that it had increased its full-year guidance over that given at the end of 2011. Coinstar now says it expects to see consolidated revenue of between $2.16bn and $2.28bn in 2012, an average of about 2.5 per cent higher than the guidance of $2.08bn to $2.25bn expected when it announced its results for the fourth quarter of 2011. The company expects to announce revenue of between $567m and $569.2m for the first fiscal quarter of 2012.
Coinstar's new guidance is in line with IHS Screen Digest's current projections for the US video rental kiosk business, which takes into account the company's purchase of NCR Corporation's entertainment business as well as additional organic growth. The company announced the agreement to purchase NCR's video rental kiosks, disc inventory, and certain retailer contracts for up to $100m on 6 February.
Coinstar also agreed to purchase around $25m in hardware, software and services from NCR over the next five year. While the purchase provides minimal additional revenue to Coinstar it removes a potentially troublesome competitor from the market and gives it a lock on most of the choice locations for kiosk deployment in the US - as well as quite a bit of kiosk hardware the company could consider deploying in an additional territory after it replaces the units with its own Redbox-branded hardware.
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