Gokis Kiosk Self-Service

Seeking Alpha - Start Collecting Coinstar

Big writeup on seeking alpha on Coinstar, its business, its profitability/financials and overall outlook.

Start Collecting Coinstar - Seeking Alpha

Coinstar (CSTR) is a leading provider of automated retail solutions offering self-service coin counting machines and DVD rentals through its Redbox kiosks at number of retail locations. At present, Coinstar has 30,000 self service Redbox kiosks at 26000 locations. Coinstar's kiosks are located mostly at leading grocery stores, mass retailers, drug stores, restaurants and convenience stores like Wal-Mart (WMT), Kroger (KR), Walgreens (WAG) and McDonalds (MCD). Customers use a touch screen to select movies at DVD kiosks and pay with either credit or debit card.

Redbox gets it DVD movie titles through licensing arrangements with various studios like Paramount, Universal Studios, 20th Century Fox, Warner, Lionsgate, Sony and other studios.

The coin business is another operation of Coinstar's business where consumers can convert their coins to cash at coin-counting kiosks. Coinstar installed its self-service coin machines at various retailer locations across the U.S., Canada, Puerto Rico, Ireland and the United Kingdom. Coinstar owns and operates coin-counting machines at approximately 18,900 locations. Coin-counting revenue is generated through transaction fees from their consumers and retailers.

Coinstar generates nearly 20% of its revenue from Wal-Mart, 14% from Walgreens and 11% from Kroger stores. These three companies represent nearly 45% of its total revenue.

In the year 2010, operating income from Coinstar's DVD segment increased approximately 89% from previous year. Operating income from the Coin Services segment decreased approximately 7.8% due to patent settlement with "ScanCoin" and the disposal of coffee kiosks.

Growth Spurts:

As end of the year 2010 Coinstar's revenue reached $1.436 billion from 2007 revenue of $307 million which is an outstanding cumulative growth of 67%, where as gross margin experienced a cumulative growth of 42% to $435 million in the year 2010 from $154 million 2007.

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Posted by staff at June 22, 2011 07:20 AM