Bellevue-based Outerwall reported a 78.4-percent drop in year-over-year net income for the third quarter of 2014 on Thursday, but CEO J. Scott Di Valerio says the company’s numbers are a reflection of its growing kiosk market.

Valerio said the large shift in year-over-year income came from Outerwall purchasing remaining interest in ecoATM, one of the company’s newest business ventures. Because the company owned interest in ecoATM, its purchase meant a reported gain for Outerwall in the third quarter of 2013.

“That premium became a gain of $68.4 million in the third quarter of last year,” he said.

Outerwall was still able to report $553 million in consolidated revenue and $17.9 million in profits from continuing operations, bumping the value of its share price up to $60 in after-hours trading.

Investors also were pleased by Outerwall’s $70 million buyback of common stock in its third quarter, which Valerio said the company believes is the best use of its free cash flow. Outerwall will look at whether it will buy back more stock later this year, said Valerio, adding he’s been questioned often about when a dividend will be put in place.

The more than 530 ecoATM kiosks installed during this year’s third quarter through retail partnerships led to large revenue gains for Outerwall’s new ventures segment, up $14.5 million from last year’s third quarter report of $15.2 million.

Movie and gaming rental kiosk Redbox continued to struggle from the second quarter into the third this year, down $53.6 million in consolidated revenue from last year.

Valerio said the decrease in revenue was not due to a failed Redbox Instant venture with Verizon to provide streaming service, for which its demise will mean a $16.8 million payout by Verizon to Outerwall to be reflected in its fourth quarter.

The problem was Redbox didn’t provide strong enough content for its kiosks, Valerio said, adding he was pleased by increases in high-frequency users and unique purchases.

“The Q3 content was not as strong as the prior year,” Valerio said, adding of this year’s Redbox earnings, “That was pretty much in line with what we expected.”

Outerwall expects last week’s announcement of its Redbox Play Pass — rewarding customers for their usage and engagement of the kiosks — will add value to the kiosk venture. It also has a new agreement with Lionsgate and extended its agreement with Universal Studios for content.

Coinstar year-over-year segment revenue increased 6.9 percent in Q3 at $85.1 million, due in part to a service price increase implemented Oct. 1 and an increased kiosk volume in the United Kingdom.

“There are potentials to do some other geographies within Coinstar,” Valerio said. “We don’t have anything to specifically talk about today on that.”