Question-and-Answer Session
Operator
All right. Thank you sir. (Operator Instructions) Your first question comes from Eric Wold - Merriman Curhan Ford & Co.
Eric Wold - Merriman Curhan Ford & Co.
First question, I guess a question on the Sony deal and the studio deals in general. I don’t want to get into the weeds and them, but if you think about in general where you were prior to a deal such as Sony, where you’ll be after a deal such as Sony, should we think of those kind of deals to be, you know, beneficial to margins long term? You know margins are going to be neutral. And then secondly on that, before you’ve given kind of a 14 to 16% DVD EBITDA margin guidance for the year. Is that still the same?
Paul Davis
Yes. Let’s start with the Sony question. Obviously we wouldn’t do deals that we didn’t believe were margin dollar positive at the end of the day, and we are not providing specific line of business guidance. However, we have increased our EBITDA guidance for the year. We’ve kept revenue fairly flat, thus EBITDA margins have gone up. And as we all know, Redbox is a significant contributor to Coinstar’s overall performance.
Eric Wold - Merriman Curhan Ford & Co.
And then just a follow up question on the video game roll out, can you give a better sense of timing of that? Whatever data you can throw out. How many machines it might encompass this year? Any thoughts on economics?
Paul Davis
Yes. Good question. We won’t share a lot of details because we’re, as we go out and do these tests we don’t want a lot of fanfare around them because, you know, we want to make sure they pass our internal set of hurdles. But what you likely, I mean if you happen to land in the market where we’re actually testing, we will test our kind of a couple of paths. One is dedicated machines just for rental, and then also ones where we integrate with our DVDs. So when I say dedicated to rental, I mean both the video games as well as our DVDs.
Operator
Your next question comes from John Kraft - D. A. Davidson & Co.
John Kraft - D. A. Davidson & Co.
In regards to coin, obviously this remains a focus for you guys. When do you expect we’ll see positive same store sales? Is that possible this year with still another 800 or so to ramp?
- To read the full transcript on Seeking Alpha, click here »
