MediaCo Holding Inc. Reports 318% Revenue Growth to $28M Amid Estrella Acquisition

MediaCo Holding Inc. reported significant financial growth in its latest quarterly filing, with net revenues reaching $28.0 million for the three months ended March 31, 2025, a substantial increase of 318% compared to $6.7 million during the same period in 2024. This surge in revenue is primarily attributed to the acquisition of Estrella Broadcasting, which expanded MediaCo's operations in both audio and video segments. Despite the revenue growth, the company recorded an operating loss of $4.7 million, which is an increase of 35% from the previous year's loss of $3.5 million. The net loss for the quarter also rose to $8.6 million, up 134% from $3.7 million in the prior year.

The financial performance reflects a notable increase in operating expenses, which totaled $32.7 million, up from $10.2 million in the previous year. This rise is largely due to the costs associated with the newly acquired assets from the Estrella Acquisition. Corporate expenses decreased significantly, falling to $1.6 million from $3.4 million, primarily due to reduced professional service fees related to the acquisition. Depreciation and amortization expenses surged to $1.8 million, driven by the integration of Estrella's assets.

In terms of operational metrics, MediaCo's cash flows from operating activities improved dramatically, increasing to $2.1 million from $0.4 million year-over-year. The company also reported an Adjusted EBITDA of $1.4 million, a 55% increase from $0.9 million in the prior year. The total number of shares outstanding as of May 9, 2025, was 48,268,088 for Class A common stock and 5,413,197 for Class B common stock.

Strategically, MediaCo's acquisition of Estrella Broadcasting has significantly enhanced its market presence, particularly in the Hispanic and multicultural consumer segments. The acquisition included various assets, such as radio and television stations across major U.S. markets, which are expected to drive future revenue growth. The company has also initiated plans to optimize its operations, including the relocation of certain studio and marketing functions, which incurred costs of $0.2 million in the first quarter.

Looking ahead, MediaCo remains focused on leveraging its expanded portfolio to capture advertising revenue in a competitive media landscape. The company is also navigating challenges posed by rising interest rates and economic uncertainties, which could impact its financial performance. Management anticipates that the integration of Estrella will yield operational efficiencies and enhance its ability to attract and retain audiences, ultimately driving long-term growth.