BELLEVUE, WA -- Coinstar Inc.'s revenue grew 34% and its net income rose nearly sixfold, driven by gains at its Redbox DVD rental vending machines.
The company's net income rose to $53.7 million, or $1.65 a share, during the first three months of the year ended March 31, up from $8.5 million, or 26¢ per share, for the same period last year. Revenue climbed to $568 million from $424.7 million a year ago.
Revenue from Coinstar’s nearly 37,000 Redbox self-service DVD kiosks grew 38.8% year over year to $502.9 million. The company attributed the gains to growth in same-location sales, new installations, and strong performance of new movie releases. Coinstar also cited consumer acceptance of its October price increase from $1 to $1.20 per rental.
Revenue from Coinstar's 20,000 self-service coin-counting machines grew 5.6% to $64.8 million, reflecting growth in transactions, transaction sizes and same-store sales.
Coinstar said it expects full-year earnings of $4.60 a share on revenue of $2.22 billion.
"Coinstar delivered strong financial results in the first quarter, demonstrating the strength of our core businesses and the value we offer consumers," said Coinstar chief executive 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."
The company's joint venture with Verizon Communications, announced in February, will sell Internet video streaming services to compete with video-rental giant Netflix Inc. | SEE STORY