Redbox brings on ex-JetBlue CFO
Harvey joins as U.S. movie-kiosk leader prepares for IPO
By Danny King -- Video Business, 5/20/2008
MAY 20 | Redbox, the largest U.S. movie-rental kiosk maker, said today that it named former JetBlue Airways chief financial officer John Harvey as its financial chief as the company prepares for an initial public offering.
Harvey, a one-time Ernst & Young accountant, also held finance positions with America West Airlines and Southwest Airlines, Oakbrook Terrace, Ill.-based Redbox said today in a statement. With the exception of a one-year stint at SkyWorks Capital, Harvey had been with JetBlue since 1999 and was promoted to chief financial officer in May 2006, according to regulatory filings. Last year, the low-cost carrier boosted revenue 20% to $2.84 billion and had an $18 million profit, compared with a $1 million loss a year earlier.
“Harvey brings to Redbox a proven track record of growing companies, extensive leadership experience and strategic financial skills,” said Redbox CEO Gregg Kaplan in the statement. “We will rely on Harvey to lead our financial team and support our corporate growth strategy.”
Closely held Redbox earlier this month said it would file for an IPO by the end of June. Coinstar, which had split 95% of Redbox’s ownership with McDonald’s, said earlier this month that it paid $5.1 million to boost its stake to 51% from 47.3%, valuing Redbox at about $140 million.
Movie-kiosk operators, which typically charge $1 per DVD, are quickly expanding as chains such as Blockbuster and Movie Gallery are reducing their bricks-and-mortar store count. Redbox more than doubled its kiosks to 7,900 as of March 31 from about 3,000 a year earlier, Coinstar said. The company in February announced agreements with Walgreens and Wal-Mart that will bring its kiosk total to more than 11,000 by the end of next year.
