NEW YORK, Dec. 8 (UPI) — Outerwall Inc., parent company of DVD lender Redbox, announced the departure of Chief Executive Officer Mark Horak on Tuesday amid lowered earnings expectations.
Shares in Outerwall, which also owns Coinstar coin sorters and the personal electronics return system ecoATM, fell 23 percent to $44.55 in after-hours trading.
A statement from Outerwall about its third quarter said it experienced “the worst theatrical box office in Redbox kiosks in four years.”
Outerwall also announced it would take a $6.5 million charge in the fourth quarter for ending SampleIt, a kiosk-based business in which customers purchase samples of skin care, hair and household products for $1.
After the demise of Blockbuster and the concentration of Netflix on streaming services, Redbox became America’s largest renter of DVDs.
Horak joined Outerwall in March 2014 after working as a home entertainment executive for Warner Bros., a division of Time Warner Inc.
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