BELLEVUE, WA — Coinstar's nationwide coin- op crane, bulk vending and kiddie ride business continued to decline during the second quarter, despite strong performance in other divisions. For the three-month period ended June 30, the company reported that its bulk vending and "other" installations, which includes kiddie rides, fell 33% from 205,000 in the first quarter to 138,000, while its skill crane placement dropped 8% from 25,000 to 23,000.
Total amusement installations during the 2008 first quarter dipped 23% from the comparable 2007 period, with the number of cranes on location falling to 25,000, compared with 30,000 units in place for the same quarter a year earlier. Bulk vending and "other" units fell to 205,000 from 269,000 pieces. At the end of last year's second quarter, ended June 20, 2007, the company reported 29,500 cranes and 267,000 bulk units.
Overall, Coinstar's total second quarter revenue advanced 60% to $219.90 million from $137.36 million during the comparable prior year quarter. Net income declined to $2.68 million from $3.35 million year over year.
Second quarter performance was led by the company's Redbox and DVD Xpress kiosks, which reportedly experienced 200% revenue growth from the year-earlier period and its coin processing business, which saw record installations during the quarter.
For the six months ended June 30, Coinstar revenues climbed to $410.42 million from $269.69 million in the corresponding period of the prior year. Its net income decreased to $5.38 million from $5.90 million. Coinstar management estimates that third quarter revenue will range from $240 million to $250 million.