Outerwall shares plunged nearly 30% in after-hours trading on Monday after the company lowered its forecast for full-year revenues.
The company said its fourth-quarter profitability would be dented by its increased spending on marketing and additional content, to persuade customers to return to “normal renting patterns”.
Of course, with the abundance of content-streaming services like Netflix and PlayStation Now, demand for rental services has plummeted.
The supplier of movie and game-rental kiosks said it expects Redbox’s 2015 revenues to come in between $1.750 billion and $1.765 billion, versus the prior range of $1.790 billion to $1.815 billion.
It sees diluted earnings per share from continuing operations at between $7.65 and $8.15, versus $8.82 to $9.52 previously guided.
Here’s a chart showing the drop in after-hours trading:
More to come …
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