Coinstar, Inc. announced that it is providing guidance for its first quarter of 2010 that includes the impact of the redbox rental revenue sharing agreement with Warner Home Video (Warner), a division of Warner Bros. Home Entertainment Inc. Under the agreement, Warner DVD and Blu-ray Disc (BD) titles will be available for rental in redbox kiosks 28 days after “street date.”
According to the statement, with the Warner agreement, redbox now believes it has secured more than 90% of expected purchases for 2010 to stock its national network of redbox owned DVD kiosks.
For the first quarter of 2010, management expects revenue in the range of $315 million to $335 million, EBITDA of $43 million to $48 million and GAAP EPS attributable to Coinstar, Inc. in the range of $0.08 to $0.14 on a fully diluted basis.
Coinstar management also reaffirmed guidance for the full year 2010 that was previously provided on February 11, 2010.
For the full year 2010, management expects revenue in the range of $1.465 billion to $1.565 billion, EBITDA in the range of $250 million to $265 million and GAAP EPS attributable to Coinstar, Inc. in the range of $1.50 to $1.65 on a fully diluted basis.
Guidance for the first quarter of 2010 and the full year 2010 includes the impact on revenue and costs related to the agreement with Warner, challenges in securing DVD content from two remaining workaround studios, and the number and timing of planned kiosk installations, particularly in the first quarter.
Coinstar management will host a conference call February 16, 2010 at 2:00 p.m. PST (5:00 p.m. EST) to discuss the agreement with Warner and guidance. The conference call will be webcast live on the Investor Relations section of Coinstar’s website at www.coinstar.com, where it will be archived. The call also will be accessible by telephone at 800-599-9829 (domestic) and 617-847-8703 (international), passcode 72989296. A recording of the call will be available approximately two hours after the call ends through March 2, 2010, at 1-888-286-8010 or 1-617-801-6888, passcode 58956949.
For more information visit: www.coinstar.com