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More on Coinstar's Q2: The revenue miss was due to Redbox sales (affected by seasonality)...

More on Coinstar's Q2: The revenue miss was due to Redbox sales (affected by seasonality) falling 9% Q/Q to $458M. Guidance (accounts for NCR deal) is mostly in-line. Coinstar expects Q3 revenue of $550M-$575M and EPS of $1.09-$1.24 vs. a consensus of $545M and $1.17. It expects 2012 revenue of $2.21B-$2.31B and EPS of $4.60-$4.90 vs. a consensus of $2.28B and $4.74. Between Coinstar's figures and Netflix's, DVD rental demand appears to be softening. CSTR -12.7% AH. (PR)
Comments (4)
  • Momintn
    , contributor
    Comments (3830) | Send Message
     
    CSTR beat earnings expectations by raising the price of rental and installing more kiosks. Revenue grew by 22%.
    They raised guidance for the year.
    new business ahead with Redbox in Publix, Safeway, largest supermarket in Canada, swapping out NCR kiosks to Redbox, and other new Redbox locations. Gain in market share to 42.5%, a gain of 8 percentage points.
    The Redbox Verizon Joint Venture recently announced that Redbox Instant™ by Verizon has been selected as the brand name and the website is now active at http://bit.ly/NLzfsE. Redbox Instant by Verizon also announced that Shawn Strickland, a former Verizon Regional Operations leader, has been appointed CEO of Redbox Instant by Verizon. Coinstar’s CFO J. Scott Di Valerio and President and COO Gregg Kaplan are serving on the board of directors. Redbox Instant by Verizon recently began alpha testing on an internal basis and is on track to launch its streaming product later this year.
    26 Jul 2012, 06:43 PM Reply Like
  • Momintn
    , contributor
    Comments (3830) | Send Message
     
    Revenue for the second quarter of 2012 increased 22% to $532.2 million compared with the second quarter of 2011, driven primarily by Redbox revenue growth of 26% to $458.0 million, primarily the result of new kiosk installations, growth in same store sales and the price increase implemented in October 2011.
    In Q2, Redbox revenue increased nearly 26% year over year to $458 million, reflecting:
     Total rentals of nearly 180 million, up 7.4%; overall rental growth includes the 5% to 8% decline in demand we have seen in the 9 months since the price increase;
     Net revenue per rental of $2.54, a 16.5% increase, which was lower than the price increase percentage due to an increase in single night rentals for DVDs, as well as product mix;
     The addition of 1,700 net new Redbox kiosks; and
     Same store sales growth of 16.5%.
    26 Jul 2012, 06:54 PM Reply Like
  • Momintn
    , contributor
    Comments (3830) | Send Message
     
    Read Prepared Remarks on this link for more information on CSTR.

     

    http://bit.ly/MNcNk7

     

    Very informative!
    26 Jul 2012, 07:01 PM Reply Like
  • Momintn
    , contributor
    Comments (3830) | Send Message
     
    "falling 9% Q/Q to $458M"
    From 2012 Q1 to Q2 total rentals were down 8% due to seasonality.
    From 2011 Q2 to 2012 Q2 total rentals were up 7.4%. Usually comparisons are made for the same quarter in the previous year.
    CSTR expects same store sales comps for the Redbox business to continue in double digits for Q3, benefiting from the price increase implemented on October 31, 2011.
    26 Jul 2012, 08:35 PM Reply Like
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