MediaCo Holding(MDIA) - 2025 Q2 - Quarterly Results

Financial & Operational Highlights Second Quarter 2025 Financial Performance MediaCo's Q2 2025 financial performance showed significant year-over-year improvement, with net revenue increasing 19% to $31.2 million, net loss reduced by 82% to $(8.8) million, and Adjusted EBITDA turning positive at $1.8 million Q2 2025 Financial Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Revenues | $31,245 | $26,202 | 19% | | Net Loss | $(8,800) | $(48,307) | 82% (Improvement) | | Adjusted EBITDA | $1,791 | $(5,222) | 134% (Improvement) | | Net Loss Margin | (28)% | (184)% | - | | Adjusted EBITDA Margin | 6% | (20)% | - | First Half 2025 Financial Performance MediaCo's first half 2025 financial performance saw net revenue surge 80% to $59.3 million, net loss improve 67% to $(17.4) million, and Adjusted EBITDA turn positive at $2.9 million, largely due to the Estrella Acquisition H1 2025 Financial Summary (in thousands) | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Revenues | $59,275 | $32,908 | 80% | | Net Loss | $(17,406) | $(51,984) | 67% (Improvement) | | Adjusted EBITDA | $2,918 | $(4,499) | 165% (Improvement) | | Net Loss Margin | (29)% | (158)% | - | | Adjusted EBITDA Margin | 5% | (14)% | - | - The 80% year-to-date revenue growth was primarily driven by new Audio and Video segment assets from the April 2024 Estrella Acquisition[4] - The improvement in Net Loss was mainly due to higher revenue and lower corporate costs related to the Estrella Acquisition, partially offset by increased operating, depreciation, and amortization expenses from the same acquisition[4] Management Commentary Management highlighted a 19% Q2 revenue increase and a 345% surge in first-half digital revenue, now 33.0% of total ad income, attributing strong results to growth in radio/TV advertising, digital performance, and Estrella Media integration - CEO Albert Rodriguez emphasized the 19% YoY revenue increase and a 345% surge in first-half digital revenue, which now accounts for 33.0% of total ad income[8] - CFO Debra DeFelice noted that growth was driven by increases in radio and TV advertising, record digital performance, and disciplined expense management[9] - The successful integration of Estrella Media assets and the realization of synergies are fueling strong, sustainable results[9] Company and Business Highlights MediaCo, a diverse-owned media company, achieved significant operational milestones across its segments, including new programming, sold-out events, and substantial growth in digital, radio, and TV viewership, reaching over 20 million multicultural individuals monthly - MediaCo is a multi-platform media company serving multicultural audiences, reaching over 20 million people monthly via television, radio, digital, and streaming platforms[10] New Programming & Events The company enhanced content by securing multi-year Liga MX soccer rights and renewing shows, while successfully executing sold-out events like the 31st annual Summer Jam and Cinco de Mayo music festivals, attracting over 40,000 attendees - EstrellaTV secured multi-year rights to all home games for Tigres, Tigres Femenil, Juarez, and Juarez Femenil Liga MX teams[11] - The 31st annual Summer Jam sold out the Prudential Center, and Spanish-language radio stations hosted sold-out music festivals with over 40,000 in attendance for Cinco de Mayo[11] Digital & Streaming The digital and streaming segment achieved remarkable growth in Q2, with FAST monthly watch time exceeding 310 million minutes and monetized premium CTV ad inventory surging 290% year-over-year, alongside plans for a new Hot 97 TV FAST channel - In Q2, FAST monthly watch time exceeded 310 million minutes, and monetized premium CTV ad inventory increased by 290% YoY[13] - HOT 97's digital platforms saw record engagement around Summer Jam, with social reach up 1,000% to 38 million users[13] - A new FAST channel, Hot 97 TV, is set to launch in the summer to expand Afro-Urban content globally[13] Radio MediaCo's radio division outperformed the market in early 2025, growing its primetime A25-54 audience by 24% compared to the market's 18%, with significant gains in key markets like Los Angeles (+56%) and Riverside/San Bernardino (+46%) - The radio division's primetime A25-54 audience grew 24% in early 2025, outpacing the market's 18% growth[13] - Key market audience growth includes: KBUE/LA (+56%), KRQB/Riverside (+46%), Dallas stations (+38%), Houston (+19%), and New York (+14%)[13] Broadcast & Local TV EstrellaTV achieved year-over-year prime-time growth in Q2, with P18-49 viewership up 23%, while local owned-and-operated stations saw substantial P18-49 audience growth, including KRCA/LA (+96%) and KZJL/Houston (+143%) - EstrellaTV's Q2 P18-49 Mon–Sun prime viewership averaged 15.3k viewers, a 23% increase YoY[13] - A Liga MX match on May 14 delivered the network's largest P18-49 audience ever, up 157% versus the season average[13] - Local stations posted significant weekday prime P18-49 audience growth: KRCA/LA (+96%), QFAA/Dallas (+49%), and KZJL/Houston (+143%)[13] Financial Statements (Appendix) Condensed Consolidated Statements of Operations This section presents MediaCo's unaudited income statements for the three and six months ended June 30, 2025, detailing revenues, operating expenses, other income/expenses, and net loss compared to prior-year periods Three Months Ended June 30, 2025 For Q2 2025, Net Revenues increased 19% to $31.2 million, Operating Loss improved 49% to $(6.8) million, and Net Loss significantly improved 82% to $(8.8) million, primarily due to the non-recurrence of a $31.0 million warrant shares liability Q2 2025 Statement of Operations (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Revenues | $31,245 | $26,202 | | Total operating expenses | $38,030 | $39,528 | | Operating Loss | $(6,785) | $(13,326) | | Total other expense | $(1,736) | $(34,799) | | Net Loss | $(8,800) | $(48,307) | Six Months Ended June 30, 2025 For the first half of 2025, Net Revenues grew 80% to $59.3 million, Operating Loss improved 32% to $(11.5) million, and Net Loss improved 67% to $(17.4) million, despite a 42% increase in total operating expenses H1 2025 Statement of Operations (in thousands) | Line Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Revenues | $59,275 | $32,908 | | Total operating expenses | $70,743 | $49,701 | | Operating Loss | $(11,468) | $(16,793) | | Total other expense | $(5,379) | $(34,925) | | Net Loss | $(17,406) | $(51,984) | Non-GAAP Financial Measures Reconciliation This section details the reconciliation from GAAP Net Loss to non-GAAP EBITDA and Adjusted EBITDA, showing Q2 2025 Adjusted EBITDA of $1.8 million from a $(8.5) million Net Loss, and H1 2025 Adjusted EBITDA of $2.9 million from a $(17.4) million Net Loss Reconciliation of Net Loss to Adjusted EBITDA (Q2 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net Loss | $(8,521) | | Provision for income taxes | $279 | | Interest expense, net | $3,855 | | Depreciation and amortization | $1,697 | | EBITDA | $(2,690) | | Other adjustments | $4,481 | | Adjusted EBITDA | $1,791 | Reconciliation of Net Loss to Adjusted EBITDA (H1 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net Loss | $(17,406) | | Provision for income taxes | $559 | | Interest expense, net | $7,609 | | Depreciation and amortization | $3,466 | | EBITDA | $(5,772) | | Other adjustments | $8,690 | | Adjusted EBITDA | $2,918 | Other Information Forward-Looking Statements This section cautions that the report contains forward-looking statements based on management's current estimates, emphasizing that actual results may differ materially due to various risks and uncertainties, and advises against undue reliance - The company states that forward-looking statements are based on management's current estimates and beliefs and are not guarantees of future performance[15] - Investors are cautioned that actual results could differ materially from expectations and are advised to consult MediaCo's SEC filings for more details on potential risks[16] Definitions and Disclosures Regarding Non-GAAP Financial Information Adjusted EBITDA is defined as Net Loss adjusted for specific non-cash and non-recurring items, used by management for internal planning and performance evaluation, and considered a useful metric for investors to assess operational strength and peer comparability - Adjusted EBITDA is defined as Net Loss excluding items like income taxes, interest, D&A, loss on asset disposal, change in fair value of warrant shares liability, other income, and other specific adjustments[17] - Management uses Adjusted EBITDA as a primary measure for planning, forecasting, and evaluating operating performance, and believes it is a relevant metric for investors to compare results with other companies[17] About MediaCo Holding Inc. MediaCo Holding Inc. (Nasdaq: MDIA) is a diverse-owned, multi-platform media company serving multicultural audiences across the U.S. with iconic brands like Hot 97 and EstrellaTV, reaching over 20 million people monthly via television, radio, digital, and streaming platforms - MediaCo is a diverse-owned media company with brands including Hot 97, WBLS, EstrellaTV, Estrella News, and Que Buena Los Angeles[20] - The company reaches over 20 million people monthly across television, radio, digital, and streaming platforms[20]