Outerwall’s e-waste collection through ecoATMs drops during Q2 2015

SEATTLE (Scrap Monster): The second quarterly results announced by Outerwall Inc. indicates significant drop in e-scrap collection through its ecoATMs. The company notes that the collection rates have not improved despite increasing the number of kiosks and relocating of some kiosks into busy areas. The fall in collection rate is mainly attributed to stiff competition from wireless carriers who offer their own buy-back deals for products.

Currently, there are almost 2,200 automated ecoATMs across the country that accepts electronic waste including used mobile phones, tablets and other electronic accessories. Recently, it had achieved a major milestone by collecting 5 million devices since its launch in 2013. It had added nearly 120 kiosks during the second quarter of the year. Also, it has relocated nearly 70 kiosks from grocery stores to busy shopping malls and huge stores, in a bid to increase collection rates.

The quarterly results indicate that Outerwall Inc.’s e-scrap take-back program continues to operate in a loss. The total revenues of the ecoATM operations amounted to $26 billion, while its operating loss for the quarter amounted to $7 million. The loss has widened when matched with the operating loss of $4.5 million posted during the same quarter a year ago. However, the company expects growth in revenues and profitability over a period.

According to the company, almost 75% of the devices collected through the ecoATMs find second life. The balance 25% devices are responsibly reused and recycled. Outerwall has strategic partnerships with leading electronic scrap recycling facilities which ensure environment-friendly recycling of the used electronics.