Redbox Owner CoinStar Reports Higher First-Quarter Profit
The parent company of the DVD rental service grew revenue 34 percent driven by a 38.8 percent gain at Redbox.
Coinstar, the parent company of DVD rental kiosk owner Redbox, reported improved first-quarter earnings on Thursday.
The company had previously said that its financials would come in solidly amid better-than-expected Redbox rental trends.
Coinstar recorded a profit of $53.7 million for the first quarter, compared with $8.5 million in the year-ago period. Earnings from continuing operations also came in at $53.7 million, compared with $14.8 million
Revenue rose 34 percent to $568.2 million driven by a Redbox gain of 38.8 percent to $502.9 million.
"Coinstar delivered strong financial results in the first quarter demonstrating the strength of our core businesses and the value we offer consumers," said 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."