Thanks to New Kiosk Installations, Redbox Q2 Profits Soar

Operating income up 98 percent while revenues climb 34 percent

Last Updated: July 28, 2011 @ 4:52 PM

A strong quarter by Redbox helped parent company Coinstar beat analyst expectations. 

Operating profits at the kiosk giant shot up 99 percent to $26.7 million from $13.4 million in the same quarter a year ago.

Revenues climbed 34 percent to $363.9 million from $271.9 million in the same period. Redbox said the growth was attributable to new kiosk installations and a rise in same store sales.

Redbox also announced that it will widen its video game offering, bolstering its library with 5,000 new games on August 1.

The kiosk said it has now rented more than 1.5 billion DVDs and Blu-rays and 4 million video games. 

Overall, Coinstar reported revenues of $435 million, down slightly from the $438 million analysts had estimated. 

Profits were stronger than Wall Street had anticipated. Projections had called for 93 cents a share, but topped out at $26.7 million or 98 cents per share.