Chicken Soup for the Soul Entertainment posted a loss in the third quarter as the acquisition of Redbox Entertainment helped push the company’s revenue higher.
The net loss was $20.1 million, or $1.13 a share, compared to a net loss of $14.5 million, or 1.04 a share, a year ago. Transaction expenses related to the acquisition of Redbox were partially responsible for the losses, the company said.
Adjusted earnings before interest, taxes, depreciation and amortization rose to $9.6 million from $5.6 million a year ago.
Revenue more than doubled, rising to $72.4 million from $29.1 million a year ago, before the Redbox acquisition.
“This has been the best financial quarter in our history, and our position in the free and low-cost streaming ecosystem is stronger than ever after completing the acquisition of Redbox during the quarter,” said CEO William J. Rouhana, Jr. “We saw tremendous growth, with revenue increasing 149% and Adjusted EBITDA 97% year over year. Despite a slowing economy, I am optimistic about the days ahead as we continue to serve value-conscious consumers across kiosk, transactional and ad-supported video on demand services.”
Jason Meier was named CFO of Chicken Soup for the Soul Entertainment, effective November 15. Meier had served as the company’s chief accounting officer since September 2021. Chris Mitchell will continue as the CFO of the parent company, Chicken Soup for the Soul Holdings, and will remain a member of the board of directors of Chicken Soup for the Soul Entertainment. ■
