Parent of Redbox Reports 4 Percent Revenue Climb

1:52 PM PST 07/25/2013 by Paul Bond
Justin Sullivan/Getty Images

Wall Street is unimpressed with Outerwall's financial report, and the stock falls after the closing bell.

Outerwall, the newly named company that is the parent of the DVD-kiosk firm Redbox, reported Thursday that its quarterly net income rose 27 percent to $46.9 million on revenue that climbed 4 percent to $554.2 million.

Outerwall, which used to be known as Coinstar, said that its Rebox unit "eclipsed 50 percent of the physical rental market for the first time during the second quarter."

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Revenue at Redbox rose 4.5 percent to $478.5 million in the quarter, while revenue at the coin-counting business was up less than 1 percent to $73.9 million.

Investors weren't impressed with the numbers. The stock rose $1.31 to $65.30 during the regular session but fell $2.30 after the closing bell when the company disclosed its second-quarter financials.

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