MediaCo Holding Inc. Reports Significant Revenue Growth, Substantial Losses in Latest Quarter

MediaCo Holding Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2024. The company achieved net revenues of $26.2 million for the three months ended June 30, 2024, a substantial increase of 116.9% compared to $12.1 million for the same period in 2023. For the six months ended June 30, 2024, net revenues reached $32.9 million, up 69.5% from $19.4 million in the prior year. This growth was primarily driven by the recent acquisition of Estrella Broadcasting, which expanded MediaCo's portfolio to include additional radio and television stations.

Despite the revenue increase, MediaCo faced a significant rise in operating expenses, which totaled $39.5 million for the three months ended June 30, 2024, compared to $12.2 million in the same period last year. For the six-month period, operating expenses were $49.7 million, up from $21.4 million. The increase in expenses was attributed to higher professional service fees related to the Estrella acquisition and increased operational costs across its segments.

The company reported a loss from continuing operations before income taxes of $(48.1) million for the three months ended June 30, 2024, compared to a loss of $(355,000) in the same period in 2023. The net loss attributable to common shareholders for the quarter was $(49.3) million, resulting in a net loss per share of $(0.75), compared to $(0.04) per share in the prior year. For the six months, the net loss attributable to common shareholders was $(51.9) million, with a net loss per share of $(1.19).

As of June 30, 2024, MediaCo's total assets surged to $338.6 million, up from $95.5 million at the end of 2023, largely due to the Estrella acquisition. However, total equity decreased to $13.7 million from $37.4 million, reflecting the substantial losses incurred during the period.

In terms of strategic developments, MediaCo completed the Estrella acquisition on April 17, 2024, which included 11 radio stations and nine television stations across major U.S. cities. The acquisition was financed through a combination of debt and equity, including a $30 million term loan and the issuance of 60,000 shares of Series B Preferred Stock. The company also entered into a first lien credit facility of up to $45 million to support the acquisition.

MediaCo's cash and cash equivalents increased to $9.9 million as of June 30, 2024, compared to $3.8 million at the end of 2023. However, the company reported negative working capital of $(11.1) million, indicating ongoing liquidity challenges. Management anticipates meeting its liquidity needs through cash on hand and projected cash flows from operations.