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Redbox parent lifts Q2 2023 revenue, earnings take a hit

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August 15, 2023

Chicken Soup for the Soul Entertainment Inc., which recently acquired Redbox, lifted its Q2 2023 revenue over the prior year period but more than doubled its earnings loss, according to a press release.

Highlights include:

Net revenue rose from $37.6 million in Q2 2022 to $79.9 million in the quarter ending June 30, 2023.
Net loss increased from $20.8 million to $43.7 million.
Net loss per common share rose from $1.39 to $1.50.
The company saw record-breaking performance at kiosks and TVOD driven by "The Super Mario Bros. Movie," including becoming the top movie rental in 2023, the most rented movie in its first week since "Top Gun: Maverick," and the most first-week rentals for a family film since "The Croods: A New Age." The film also broke week one TVOD revenue records, and its Premium VOD/EST debut surpassed the previous record held by "Avatar: The Way of Water."
Crackle Connex, another video platform owned by Chicken Soup for the Soul Entertainment Inc., signed a deal with TikTok to provide content from its platform to over 3,000 kiosk digital video screens, allowing brands to leverage Redbox's digital-out-of-home network.
The company began the rollout of the previously announced 1,500 kiosk expansion program with key retail partner Dollar General.
Crackle Connex signed a deal with Coinstar's adPlanet Retail Media Group and Velocity MSC to bring its reach of digital-out-of-home video screens to over 10,000.

Shares traded at $1.01 Monday against a 52-week range of 94 cents to $12.60.

The $79.9 million in quarterly revenue missed analyst expectations by $40.15 million and the GAAP EPS of a $1.50-loss beat expectations by 22 cents, according to Seeking Alpha.

"August 11 marked the first anniversary of our Redbox acquisition," William Rouhana, Jr., chairman and CEO said in the press release. "It's been an incredible year integrating two companies to create one of the largest providers of premium entertainment to value-conscious consumers. It's worth noting the massive changes that have happened in the media space and the broader economy over the past 12 months that are affecting all of us in this space. Despite these seismic changes, we have been able to streamline our business to drive cash flow."