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The numbers are just in, and Redbox’s parent company, Coinstar, has reported $1.1 billion in revenue for 2009, which is a 50% increase over the preceding year. Coinstar’s Q4 revenue was up 43.9% versus the fourth quarter of 2008, totaling $328 million with a net income of $5.5 million. Operating margin slipped from 9.4% to  6.1%, however.

Coinstar CEO Paul Davis had the following to say about the financials:

“Surpassing $1 billion in revenue and generating significant cash flow and earnings in 2009 were remarkable accomplishments that reflect the strength of our core coin and DVD businesses. . . In 2010 we will continue to engage our consumers and expand our retailer partnerships through innovative initiatives that position us for continued top and bottom line growth.”

Redbox itself had 2009 revenue of $773.5 million, which is practically double its $388.5 million earned in 2008. Coinstar estimates that it will have an even healthier 2010, with revenues totaling between $1.46 billion and $1.56 billion. Coinstar’s full financial release can be found here.

Will these numbers silence the naysayers, Insiders, or should the decline in margin continue to raise concerns?

(via Home Media Magazine and The Wall Street Journal)

17 Responses to “Redbox Parent Coinstar Reports More than $1 Billion in 2009 Revenue”

  1. Visitor [Join Now]
    Mike Tyson [visitor]

    That earnings call was a Knock Out punch!

  2. Member [Join Now]
    MovieWatcherSupreme [moviewatchersupreme]

    Holy M16 Jumping Jacks! Those are some serious earnings. Decline in margin I think is just in relation to recent economy issues. Well there not to recent anymore, more like they are just hanging around. Naysayers beware, we have here a payload with some serious marketing punch.

    • Member [Join Now]
      MovieWatcherSupreme [moviewatchersupreme]

      To elaborate, I know the numbers aren’t superstantial(it’s a word now I clicked add on the spell check, lol) but they are impressive for a company who started out with in store machines that turned your extra pennies into cash, especially during a time of economic hardship. Just compare these numbers to other companies on the same level.

  3. Visitor [Join Now]
    John Small [visitor]

    Those were not good numbers and Coinstar barely managed to stay in the black. Things only look to get worse for Redbox in the future unless they can settle with the studios. The pyramid is getting set to collapse.

    Read the numbers people, this was not good at all.

    • Visitor [Join Now]
      Vernon Dent [visitor]

      ditto

    • Visitor [Join Now]
      Firstlawofnature [visitor]

      Studio fan,

      You are dreaming. They are going to generate $50mm in cash after all capital expenditures. They are crushing the stores even with one hand tied behind their back. What specific numbers were ‘not good’?

      • Visitor [Join Now]
        John Small [visitor]

        Profit / machine falling, expense / machine rising

        never a good thing

        • Visitor [Join Now]
          Firstlawofnature [visitor]

          No kidding they are doing a work around. It’s a good thing to suffer through if you can build a billion dollar business. Besides trying to figure out average placements is impossible and the new units aren’t profitable right away so they skew the economics you pretend to know.

          • Visitor [Join Now]
            John Small [visitor]

            Coinstar said that same store growth was less than expected due to the additional costs incurred and the fact that they could not get all the new releases they wanted.

            Get your facts straight before you try to attack someone who has read the full report and attended the conference call.

            Building a billion dollar business that makes a couple million dollars a year is a waste of money IMO. The slightest hardship drops your entire company it freefall. That is where Redbox is heading.

  4. Visitor [Join Now]
    Joe Bloggs [visitor]

    don’t worry about earnings. this company is in growth mode. if they weren’t spending money to grow the number of kiosks then earnings would have been higher. the key is they are taking market share and its impossible for brick and mortar types to compete with kiosks for the bulk of the publics viewing habits.

    kiosks and netflix are the future for dvd rental.

  5. Member [Join Now]
    Cypherdude [cypherdude]

    This was a good year for CoinStar. However, expect competition to increase with BlockBuster’s own NCR DVD machine arriving. I actually came across one for the first time yesterday. I expect to see more in the future. The biggest advantage Redbox has is they have integrated their website with their machines. They show the availability of their different DVD offerings on their website. I would never use Redbox if they did not have this feature. When I want to rent DVD’s, I already know which titles I want to see. I would never go to any kiosk without knowing it’s already there for me. I understand BlockBuster’s kiosks do not have this feature, yet.

    • Visitor [Join Now]
      RoboTron [visitor]

      Bring on the competition. Redbox wants it. They want to accelerate the shift from bring and mortar to kiosk. For every Blockbuster that goes out of business, Redbox and Netflix benefit as do customers.

      Embrace change. Embrace Redbox. (I should trade mark that)

      • Visitor [Join Now]
        tuna [visitor]

        The quicker they put brick and mortar stores out of business the faster they can raise the price from $1 to $2 state by state and it will happen

        • Visitor [Join Now]
          Consumer [visitor]

          They are still “testing” $1.50 each day in New Mexico after 6+ months. Due to inflation and product demand Redbox will raise their price in the future.

          But not necessarily a bad move for them. As long as consumers get the titles they want during the first two weeks of street date.

  6. Visitor [Join Now]
    mow [visitor]

    Redbox beats blockbuster kiosk anyday. You can see which movies are available on the redbox site and even reserve a movie online and pick it up at the store, with blockbuster you’re taking a chance to see if the movie is there. This happen to me several times and they didn’t have some new releases.
    BLOCKBUSTER KISOK SUCKS. That’s why they have some many free codes to lure customers in.

  7. Member [Join Now]
    djjojo1 [debra]

    does anyone know how to re-register for the FREE membership.. i noticed today my membership has expired but the only membership i see now is the ones u have to pay. am i over looking it or what??