UPDATE 1-Redbox operator Outerwall cuts 3rd-quarter forecast due to higher discounts
* Slashes Q3 core diluted earnings forecast to $0.82/shr to $0.94
* Cuts Q3 revenue forecast to $569 mln to $589 mln
* Shares fall 20 pct after the bell
Sept 16 (Reuters) - Outerwall Inc, operator of the Redbox video rental kiosks, slashed its third-quarter earnings forecast due to higher promotional discounts, sending its shares down nearly 20 percent in trading after the bell
The company now expects third-quarter core diluted earnings of 82 cents to 94 cents per share, down from the $1.36 to $1.51 per share it forecast earlier.
Outerwall also lowered its revenue forecast to $569 million-$589 million for the third quarter, from the $604 million to $630 million it estimated earlier.
Although rentals and revenue for Redbox increased significantly in July and August over 2012 levels, they were not up to expectations, the company said, adding that heavy discounting reduced the expected average transaction size.
Outerwall also cut its full-year core diluted earnings to between $4.72 and $5.12 per share from its previous estimate of $5.76 to $6.26 per share.
The company now expects revenue of $2.27 billion to $2.34 billion for the full year, down from its earlier forecast of $2.37 billion to $2.48 billion.
Outerwall shares were down at $44.75 after the bell. They closed at $55.97 on the Nasdaq on Monday.