November 14, 2022
Chicken Soup for the Soul Entertainment’s $375 million acquisition of Redbox in May is paying off for the streaming video distributor.
The company, whose assets also include Crackle and PopcornFlix, among other ad-supported platforms, Nov. 14 reported net revenue of $72.4 million in the third quarter, ended Sept. 30, up 149% from revenue of $29.1 million during the previous-year period. The net loss increased 20% to $20.1 million from a net loss of $16.7 million last year.
CEO William J. Rouhana Jr. attributed the revenue increase and loss surge largely to the Redbox acquisition, which included the assumption of $325 million in Redbox’s debt.
“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,” Rouhana said in a statement.
CSSE did not disclose Redbox’s operating results, which includes 34,000 legacy disc rental kiosks as well as branded TVOD and free ad-supported streaming TV (FAST) platform. The company has not yet posted its 10Q filing.
“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,” Rouhana said.
CSSE also announced the promotion of Jason Meier to CFO of Chicken Soup for the Soul Entertainment effective Nov. 15. Meier, who has served as the company’s chief accounting officer since September 2021, brings a breadth of experience and is well suited for the role. 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.