MediaCo Holding Inc. reported significant financial growth in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company achieved net revenues of $29.9 million for the third quarter, a substantial increase from $6.4 million in the same period of 2023, marking a 363.1% rise. For the nine-month period, revenues reached $62.8 million, up from $25.9 million, reflecting a 142.7% increase. This growth is attributed to the acquisition of Estrella Broadcasting, which expanded MediaCo's operational footprint and revenue-generating capabilities.

Operating expenses also surged, totaling $36.7 million for the third quarter compared to $8.4 million in 2023, and $86.4 million for the nine months, up from $29.8 million. The increase in expenses is primarily linked to the integration costs associated with the Estrella acquisition, which included involuntary termination costs of $1.4 million.

MediaCo reported a net income of $54.9 million for the third quarter, a significant turnaround from a loss of $2.3 million in the prior year. For the nine months, the company recorded a net income of $2.9 million, compared to a loss of $4.8 million in the same period of 2023. The net income attributable to common shareholders for the third quarter was $54.3 million, translating to a basic earnings per share of $0.73, compared to a loss per share of $0.12 in the previous year.

The acquisition of Estrella Broadcasting on April 17, 2024, was a pivotal strategic move, allowing MediaCo to consolidate its assets and liabilities, significantly enhancing its market presence with 11 radio stations and nine television stations across major U.S. cities. The total consideration for the acquisition included a mix of cash, stock, and debt, amounting to approximately $154.5 million.

As of September 30, 2024, MediaCo's total assets soared to $338.4 million, up from $95.5 million at the end of 2023, driven by the acquisition. Total liabilities also increased to $251.4 million from $29.3 million, reflecting the debt incurred for the acquisition. The company reported cash and cash equivalents of $7.7 million, an increase from $3.8 million at the end of 2023.

MediaCo's financial performance was impacted by rising interest rates, which increased interest expenses on its debt. The company is actively managing its liquidity needs and expects to meet them through cash reserves and operational cash flows. The effective tax rate for the nine months ended September 30, 2024, was 17%, compared to 5% in the previous year, reflecting changes in deferred tax liabilities.