News

Redbox stocks fall more than 20 percent

Redbox owner Outerwall Inc. has experienced a more than 20 percent drop in its shares' value. In the wake of this announcement, Outwall has stated that Redbox's president, Mark Horak, will be leaving the company.

December 10, 2015

Redbox owner Outerwall Inc. has experienced a more than 20 percent drop in its shares' value. In the wake of this announcement, Outerwall has stated that Redbox's president, Mark Horak, will be leaving the company, according to a report by Value Walk.

Outerwall expects Redbox's total 2015 revenue to be in between $1.75 billion and $1.765 billion, compared to earlier estimates that put it closer to $1.8 billion. The company also expects its diluted earnings per share to be worth between $7.65 and $8.15, compared to previous estimates at $9.15.

Outerwall has claimed that weak performance by Redbox has led to this situation. "While Redbox has driven improvements in both unique customers and total rentals during the first two months of the fourth quarter relative to the third quarter, the business has not met the company’s performance expectations and continues to remain challenged by the historically low box office during the third quarter, which was the worst theatrical box office in Redbox kiosks in four years," the company said in a statement. "The company continues to focus on optimizing Redbox and is committed to taking the necessary actions to build upon its strong brand and foundation and position the business for continued success."

According to the report, streaming services from Netflix and Amazon has led to a decrease in physical rental volume of DVDs and Blue-rays.