Outerwall (yes, that’s the company’s name) also announced a new president for Redbox: Mark Horak, who’ll move from Warner Bros Home Entertainment on March 17 to run the DVD kiosk company. But the financial disclosures are probably most responsible for the 10%+ jump in Outerwall’s share price in post market trading. Net income at $22.7M was down 1% vs last year, on revenues of $593.7M, +5.4%. The revenue number was slightly below analyst forecasts for $596.1M. But diluted earnings from continuing operations at $1.55 a share beat predictions for $1.22. The results show, though, that Redbox is feeling its age. It contributed $496.4M to revenues, +1.7%. Operating income at $111.3M was +39.2% — but that included $7M from an accounting change that’s “expected to reverse in the first quarter of 2014,” the company says. Redbox had 192M rentals in the quarter, +2.2%, with revenue per kiosk +2.1%. Sales at kiosks open at least a year was up 0.9%. Blu-ray discs accounted for 14.2% of rentals and 16.3% of revenue and October rentals were weak and December “did not perform as well as we expected” — partly due to a later than usual Thanksgiving — the company says. But November was “an exceptional month” helped by White House Down and Grown-Ups 2. Video games accounted for 2.7% of rentals, a slight pull back from last year’s 3%. Outwall’s board increased the stock repurchase authorization to $500M, bringing the total to $650M. Directors also authorized a $350M tender offer; the company expects shares to sell for as much as a 20% premium over the previous closing price. Execs declined to divulge significant new details about the Redbox Instant streaming venture with Verizon.
Redbox Owner’s Shares Rise After It Reports Strong Q4 Results And A Buyback
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