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AENT Nasdaq· Alliance Entertainment Holding Corporation
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AENT Nasdaq· Alliance Entertainment Holding Corporation
Earnings report Q4 2023

Alliance Entertainment's Net Revenue Declines in Latest Quarter

Segments of Revenue

Alliance Entertainment reported a decrease in net revenue for the three months ended December 31, 2023. Total net revenues decreased from $445 million to $426 million, representing a decline of $19 million or 4.3% year-over-year.

Strengths

Despite the decline in net revenue, Alliance Entertainment stands out as a value-added retail distributor in the film and music industry. The company holds exclusive distribution rights for approximately 160 studios and labels, giving it a competitive advantage. This extensive portfolio of unique content enables Alliance Entertainment to cater to bulk business-to-business (B2B) and direct-to-consumer (DTC) businesses with a wide selection of products that are unavailable elsewhere.

Challenges

Alliance Entertainment, like other retailers and distributors in the United States, faced macroeconomic headwinds caused by high interest rates and reduced consumer buying power. The company's B2B customer base, primarily retailers, experienced challenges due to earlier than usual promotional cycles and labor constraints. These factors contributed to the decline in net revenue.

Noteworthy

Alliance Entertainment's B2B customer base benefited from a long holiday season, with 32 days between Thanksgiving and Christmas. However, this was offset by the aforementioned challenges. It is worth noting that the company's net revenue decline aligns with the overall industry trend and the impact of macroeconomic factors.

Summary

Alliance Entertainment reported a decline in net revenue for the latest quarter, with total net revenues decreasing by $19 million or 4.3% year-over-year. The company faced challenges due to macroeconomic headwinds, including high interest rates and reduced consumer buying power. However, Alliance Entertainment's exclusive distribution rights for numerous studios and labels in the film and music industry position it as a value-added retail distributor. The decline in net revenue is in line with industry trends, and the company's extensive portfolio of unique content allows it to cater to bulk B2B and DTC businesses.

Source documents

Form 10-Q  filed on Feb 08, 2024
17 pages scanned

Reference data

Company financials Q4 revenue 426M
Analyst estimates Q4 EPS missed by NaN%
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