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UPDATE: Media Stocks End Day -7.3% As Markets Grapple With S&P’s Debt Downgrade

UPDATE, 2 PM: The market deteriorated as the day wore on, continuing the worst market slump since 2008. The Dow Jones U.S. Broadcasting and Entertainment Index closed down 7.3% — exceeding the 5.6% decline in the Dow Jones Industrial Average, 6.7% drop in the Standard & Poor’s 500, and 6.9% fall at NASDAQ.  CBS’ -10.3% slide made it the leading loser among media’s Big Guns. It was followed by News Corp (-7.7%), Viacom (-7.1%), Comcast (-6.6%), Sony (-6.4%), Disney (-6.1%), and Time Warner (-5.8%).

Double-digit losers include AMC Networks (-12.8%), LIN TV (-12.7%), Sirius XM (-12.7%), RealD (-12.6%), Cumulus Media (-11.9%), TiVo (-11.4%), Entercom (-10.9%), Westwood One (-10.8%), and E.W. Scripps (-10.3%). Those losing at least 9% include National CineMedia, Dish Network, Arbitron, Sinclair Broadcasting, Rovi, Outdoor Channel, Crown Media, Electronic Arts, Cablevision, and Coinstar. Read More »

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Coinstar Shares Down Slightly In After-Hours Trading As Revenues For Redbox Owner Miss Analysts’ Target

By | Thursday July 28, 2011 @ 1:53pm PDT

The leading provider of DVD rental kiosks generated 2Q profits of $26.7M, double what it delivered in the same period last year, on revenues of $435.2M, up 27%. Earnings at continuing operations came in a 98 cents a share, beating the 95 cents that analysts expected. But they also thought that revenues would be slightly higher at $437.7M. That contributed to a 1.6% drop for Coinstar shares in after-market trading even though the company also authorized a $250M stock buyback. “Our solid financial position enables us to prudently invest in our business and opportunistically return capital to our shareholders,” CFO J. Scott Di Valerio says. Redbox said today that it will rent video games at 5,000 additional kiosks beginning Aug. 1 bringing its total to 27,000.

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Coinstar Shares -10.5% In After-Hours Trading As Redbox President Mitch Lowe Leaves For “Other Interests”

Coinstar shares are down nearly 10.5% in after-hours trading as the company coupled this surprising announcement with an early release of financial data that’s lower than Wall Street expected. The owner of the Redbox $1-a-night DVD rental kiosks says that next week it will report 2Q revenues of between $434M and $436M — below the $445.9M average forecast by analysts. Coinstar adds that earnings in the third quarter will be higher than in the fourth because the year will end with lots of DVD releases ”by studios that generate lower margins for the company.” The company also said that it has borrowed $450M in senior secured credit to repay $150M in existing debt and provide working capital.

The announcements will jolt investors who have been regaining their confidence in Coinstar after its shares plummeted 30% in January. The company startled the Street by disclosing that its financials would fall far short of its guidance. Coinstar was grappling inventory issues as several studios delayed providing DVDs to Redbox until 28 days after they were available elsewhere. Also, Redbox was slow to integrate Blu-ray discs into its kiosks. But lately Redbox seemed to be in the catbird’s seat. Blockbuster’s kiosk business is on the ropes following the chain’s bankruptcy and acquisition by Dish Network; this month NCR, which makes the machines, said it may sell the unit. And Netflix angered a lot of consumers with the recent 60% price hike for its combination DVD rental and broadband streaming … Read More »

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Redbox Starts Renting $1.50 Blu-ray Discs

By | Thursday July 29, 2010 @ 1:26pm PDT

Coinstar’s Redbox announced today it has started rolling out Blu-ray titles with availability at approximately 13,300 DVD rental kiosks nationwide.  Redbox will rent Blu-ray Discs at $1.50 per night plus tax and the company expects to have availability across its network of approximately 23,000 kiosk locations by the fall.

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