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Coinstar Q1 Tops Estimates; Full Year Outlook Slightly Light

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Old 04-26-2012, 02:49 PM   #1
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Default Coinstar Q1 Tops Estimates; Full Year Outlook Slightly Light

Pretty much what I would expect from Redbox right now. Strong revenue, with projections for slowing growth.

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For the period, the company reported revenue of $568.2 million, up 34% from a year ago, and ahead of the Street at $563 million. Core EPS form continuing operations of $1.39 a share topped the Street at $1.34.

For Q2, the company sees revenue of $525 million to $550 million, with core profits from continuing operations of $1.09 to $1.24 a share; Street consensus had been $544 million and $1.05 a share.

For all of 2012, Coinstar sees revenue of $2.155 billion to $2.28 billion, and core EPS from continuing operations of $4.40 to $4.80 a share; Street consensus was $2.26 billion and $4.74.

While the Q1 results and Q2 guidance were solid, the full year guidance at the midpoint of the projected ranges suggest some slowing performance in the second half, and could leave the Street feeling a little cold.
http://www.forbes.com/sites/ericsavi...lightly-light/
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Old 04-26-2012, 02:58 PM   #2
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Good to see their margin increasing (price increase likely helped), but it is interesting to see exactly where their operating margin is.

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Revenue for the first quarter of 2012 increased 34.0% to $568.2 million compared with the first quarter of 2011, driven primarily by Redbox revenue growth of 38.8% to $502.9 million, reflecting growth in same store sales, new kiosk installations, strong performance of new release titles, and consumer acceptance of the price increase implemented on October 31, 2011. Coin revenue grew 5.6% to $64.8 million, reflecting growth in transactions, transaction size and same store sales.

Operating income for the first quarter of 2012 was $78.3 million, which resulted in an operating margin of 13.8%, compared with operating income of $31.4 million and an operating margin of 7.4% in the first quarter of 2011.
http://finance.yahoo.com/news/coinst...200100840.html
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Old 04-26-2012, 03:09 PM   #3
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Redbox itself saw a $140 million increase in revenue for the quarter.

It will be interesting to see how that compares to B&M decline during the same period.
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Old 04-26-2012, 03:41 PM   #4
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A 40% Jump in Redbox Revenue Helps Coinstar Post $53.7 Million Profit

26 Apr, 2012
By: Chris Tribbey



A nearly 40% jump in revenue for Redbox helped parent company Coinstar enjoy first-quarter (ended March 31) revenue of $568.2 million and a profit of $53.7 million.

That’s compared to revenue of $424.1 million during the same quarter of 2011, when Coinstar reported a profit of $8.5 million.

Better same-kiosk sales, the addition of more kiosks, strong performance of new-release titles and consumer acceptance of a 20-cent price increase all were credited by Coinstar for the strong results by Redbox, which posted revenue of nearly $503 million.


“Coinstar delivered strong financial results in the first quarter, demonstrating the strength of our core businesses and the value we offer consumers,” said Coinstar CEO Paul Davis. “As we move forward in 2012, we continue to execute on a number of important initiatives including the launch of our Redbox digital solution with Verizon via our joint venture and the rollout of one to two of our new venture businesses.”

For all of 2012 Coinstar is expecting revenue of between $2.15 billion and $2.28 billion, and earnings per share of $4.40 to $4.80.

“Solid execution and operational excellence across Coinstar drove top- and bottom-line growth,” said J. Scott Di Valerio, Coinstar’s CFO. “Our performance underscores the ability to generate profitable growth and simultaneously invest in the future of our core businesses and new automated retail concepts.”



http://www.homemediamagazine.com/red...n-profit-27095
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Old 04-26-2012, 04:02 PM   #5
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Looks like the PR pimps are posting lies again.

Home Media Magazine just published a story stating "A 40% Jump in Redbox Revenue..."

Revenue increase for Redbox was 38.8% compared to Q1 2011. Note the actual journalistic organizations (which I quoted in my previous posts) are able to tell the story without lying.
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Old 04-26-2012, 04:22 PM   #6
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Originally Posted by PSound View Post
Looks like the PR pimps are posting lies again.

Home Media Magazine just published a story stating "A 40% Jump in Redbox Revenue..."

Revenue increase for Redbox was 38.8% compared to Q1 2011. Note the actual journalistic organizations (which I quoted in my previous posts) are able to tell the story without lying.
That's just the title of the article - they did say; "a nearly 40% jump" in the verbage.
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Old 04-26-2012, 05:06 PM   #7
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Originally Posted by Lee Stewart View Post
That's just the title of the article - they did say; "a nearly 40% jump" in the verbage.
Exactly.
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Old 04-26-2012, 05:35 PM   #8
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Blu-ray doesn't even account for 10% of the rental revenue.
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Old 04-26-2012, 05:39 PM   #9
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Blu-ray doesn't even account for 10% of the rental revenue.
That is likely true, and does not look to have grown at all.

If you look at their average revenue per rental (compared to last year), the price increase looks to be almost an exact match as a driver.
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Old 04-26-2012, 05:49 PM   #10
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actually there were less discs rented as the price increase was higher than the revenue increase. So it was slightly worse.
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Old 04-26-2012, 05:50 PM   #11
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Or it could mean that consumers are not holding onto the discs as long either. The % of people only going 1 day could be increasing.
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Old 04-26-2012, 05:55 PM   #12
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Better same-kiosk sales, the addition of more kiosks, strong performance of new-release titles and consumer acceptance of a 20-cent price increase all were credited by Coinstar for the strong results by Redbox, which posted revenue of nearly $503 million.

Redbox’s share of the physical disc rental market jumped 7% year-over-year, solidifying its lead at 38.5%. Redbox now has more than 30 million unique customers a month.

Redbox rentals hit 196 million for the quarter, an increase of 19.4% year-over-year. Net revenue per rental was $2.56, an increase of nearly 17%, which Redbox credited to the price increase to $1.20, a higher mix of Blu-ray rentals and a better take of revenue from video game rentals. Blu-ray helped contribute 8.7% of Redbox’s revenue for the quarter, while video games helped contribute 5%.
I am shocked that video games revenue is not that far from bd revenue. I would expect the bd revenue to be about 25% of total revenue not below 10%. Considering that a game takes days to play I would not expect many to rent from their and the numbers prove it. Bd hardly gets rented from redbox either. Less than 10% folks!!!

http://www.homemediamagazine.com/red...n-profit-27095
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Old 04-26-2012, 06:14 PM   #13
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Q4 2011 Results - Redbox

Revenue = $445.6 million

Increase over Q3 = 39.5%

Video Game Revenue = 7.5%

Blu-ray Revenue = 6.8%

Total Net Rentals = 177 million



02/06/12 Prepared Remarks 2011 Q4

http://phx.corporate-ir.net/phoenix....rterlyearnings
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Old 04-26-2012, 06:28 PM   #14
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Originally Posted by chipvideo View Post
I am shocked that video games revenue is not that far from bd revenue. I would expect the bd revenue to be about 25% of total revenue not below 10%. Considering that a game takes days to play I would not expect many to rent from their and the numbers prove it. Bd hardly gets rented from redbox either. Less than 10% folks!!!

http://www.homemediamagazine.com/red...n-profit-27095
I know the number isn't impressive (but it is in line with BD vs DVD total rental revenues) and they had a 22% increase in BD revenue in Q1 2012 over Q4 2011.
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Old 04-26-2012, 07:58 PM   #15
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Originally Posted by chipvideo View Post
I am shocked that video games revenue is not that far from bd revenue. I would expect the bd revenue to be about 25% of total revenue not below 10%. Considering that a game takes days to play I would not expect many to rent from their and the numbers prove it. Bd hardly gets rented from redbox either. Less than 10% folks!!!

http://www.homemediamagazine.com/red...n-profit-27095
Yikes! That is terrible for Blu-ray.
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