Redbox Helps Coinstar Deliver Strong 1Q

Redbox‘s revenue grew 38% to $502.9 million compared with the first quarter a year ago, giving parent company Coinstar healthy earnings to report after the closing bell today. Redbox’s kiosk DVD rental service saw growth owing to a year-over-year boost in same-store sales, new kiosk installations, strong performance of new release titles, and a rental price increase (to $1.20 from $1) that was implemented in October. Overall, Coinstar booked revenue of $568.2 million, up 34% from 2011. Operating income was $78.3 million, good for an operating margin of 13.8%, compared with $31.4 million and 7.4% a year ago. Earlier this month, Coinstar raised its 2Q and yearly outlook, saying that Q1 revenues for the first quarter could exceed $569 million vs the maximum of $555 million it projected in February. At the time it cited strong rentals for recent titles including Moneyball, Puss In Boots, 50/50, In Time, Abduction and Mr. Popper’s Penguins.

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