Chicken Soup for the Soul Entertainment, which expanded its operations by acquiring Redbox last May, reported a wider fourth-quarter loss despite a big increase in revenue.
The company’s net loss in the quarter was $56.3 million, or $2.70 a share, compared to a loss of $22.4 million, or $1.38 a share, a year ago. Adjusted earnings before interest, taxes, depreciation and amortization rose to $14.7 million from $9.3 million a year ago.
Revenue tripled to $113.6 million thanks to the Redbox acquisition.
“Our fiscal year was one of significant growth for Chicken Soup for the Soul Entertainment — especially with the acquisition of Redbox, which immediately scaled our operations,” CEO William Rouhana Jr. said.
Also Read: Former Redbox Chief Galen Smith Resigns From Chicken Soup for the Soul
“The company is well positioned for the coming year to take full advantage of the upcoming theatrical slate and the continued increase in viewers of free ad-supported services across our FAST and AVOD platforms,“ Rouhana said. “Over 40 major film releases are expected this year — the most since 2019 — with at least one new movie available every week in our kiosks and digitally. This increase in movies means more rentals, more revenue, and more cash flow for the company. We plan to use this cash flow to scale our operations and help pay down debt.”
The company is in the process of raising additional working capital through a $10.8 million Class-A common equity offering. Chicken Soup for the Soul Holdings has committed to making equity investments in the company in lieu of certain cash fees under current management and license agreements. ■
