Chicken Soup for the Soul reports record quarter
November 15, 2022
Chicken Soup for the Soul Entertainment, a provider of premium content to value-conscious consumers, has announced its financial results for the third quarter ended September 30th 2022.
“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 William J. Rouhana, Jr., chairman and chief executive officer of Chicken Soup for the Soul Entertainment. “We saw tremendous growth, with revenue increasing 149 per cent and Adjusted EBITDA 97 per cent 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.”
Third Quarter 2022 Financial Summary
- Net revenue of $72.4 million, compared to $37.6 million in the second quarter of 2022, and $29.1 million in the year-ago period
- Net loss of $20.1 million compared with a net loss of $20.8 million in the second quarter of 2022, and a net loss of $16.7 million in the year-ago period; $45.1 million net loss before dividends, compared with $18.4 million net loss in the second quarter 2022, and $14.5 million net loss in the year-ago period
- Adjusted EBITDA of $9.6 million, compared with $5.6 million in the second quarter of 2022, and $4.9 million in the year-ago period
Recent Business Highlights
- Successfully completed merger with Redbox Entertainment creating leading premium entertainment company for value-conscious consumers
- Partnered with VIZIO and Hisense to add Redbox and Crackle buttons to remotes beginning in 2023
- Expanded content financing partnership with Publicis Media’s APX Content Ventures, which elevates the voices of underserved audiences
- 4,000 per cent increase in viewed minutes on Chicken Soup for the Soul streaming app from August to September driven by strong programming slate
- Crackle and Popcornflix FAST channels launched on FuboTV, further expanding digital distribution footprint
- Rapidly grew viewership through additional touchpoint rollouts; now on track to reach 160 by year-end including Redbox
Operating loss for the quarter ended September 30, 2022, was $42 million, compared with an operating loss of $16.8 million in the second quarter of 2022, and $13.2 million in the year-ago period. The increase in operating loss in the third quarter was driven partially by one-time transaction expenses related to the merger with Redbox Entertainment.
Net loss was $20.1 million, or $1.13 per share, compared with a net loss of $20.8 million, or $1.39 per share, in the second quarter of 2022, and a net loss of $16.7 million, or $1.04 per share in the prior-year period.
Adjusted EBITDA for the quarter ended September 30th 2022, was $9.6 million, compared with $5.6 million in the second quarter of 2022, and $4.9 million in the same period last year.