Coinstar reported 28 April 2011 the results of its first fiscal quarter for 2011, ended 31 March 2011. The company said it saw total revenue grow to $424m and expected to see between $430m and $450m in the second quarter and between $1.73bn and $1.85bn for the full year. Coinstar's successful Redbox kiosk video rental unit generated $362.3m of that first-quarter revenue with same-store sales up 15.5% compared to $262m in the same quarter of last year. The unit's operating margin declined, however, to 14% from 17.6% in the first quarter of 2010. The company expects Redbox to generate full-year 2011 revenue of between $1.45bn and $1.56bn (about 84% of the company's total revenue) as it spends $125m-$140m to add between 5,000 and 6,000 new kiosks.
In 2010, Coinstar's Redbox generated nearly 19% of the US market's $6.2bn in total spending on disc rental, up from about 12% the year before; and, of course, it held the highest share (nearly 90%) of the $1.3bn kiosk rental market in 2010. IHS Screen Digest forecasts consumer spending on disc rentals through kiosks to grow to nearly $1.8bn in 2011 and, though competitors are springing up like wildflowers, Redbox will continue to hold market dominance in the year to come - its closest competitor, NCR's Blockbuster Express-branded kiosk rental service, has backed well off of its initially aggressive goals. Redbox is now ready to conquer the game rental market as well, expanding its recent test of kiosk-based $2 per night videogame rentals to more than 21,000 kiosks across the US beginning in mid-June 2011.
