Coinstar shares closed up 7.29 percent at $65.78 Friday after...
Coinstar shares closed up 7.29 percent at $65.78 Friday after the company said it expects to report stronger-than-expected results for Q1. It now expects to report revenue of $567 million-$569.2 million, up from the $530 million-$555 million estimate that it…
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gave in February (CED Feb 8 p4) and higher than the $424.1 million in revenue that it reported for Q1 last year. The increased revenue was “driven by stronger than anticipated consumer demand” at Redbox throughout Q1, especially in February and March, “reflecting, in part, better than anticipated consumer acceptance” of the 20-cent price increase to $1.20 per DVD rental that was implemented in October, Coinstar said. The company also boosted its forecast for this year’s results, mainly due to “the strong” Q1 preliminary results and “additional learning on the impact of the price increase, as well as the extension of” Redbox’s content licensing deal with Universal, Coinstar said. It expects to report revenue of $2.2 billion-$2.3 billion for the year, up from $1.8 billion last year. Benchmark Capital said Friday it continues to see “strong potential” for Redbox. It cited NPD data showing Redbox increased its U.S. DVD rental market share last year. NPD said in January that Redbox’s share of DVD and Blu-ray movie rentals grew from 25 percent in 2010 to 37 percent in 2011, while Blockbuster’s share slid 6 percentage points to 17 percent.