NEW YORK - MediaCo Holding Inc. (NASDAQ: MDIA), a prominent player in multicultural media, announced today that it has fully repaid a $7.3 million convertible promissory note to Emmis Communications Corporation. Following the repayment, all Emmis-appointed representatives on MediaCo's Board of Directors have stepped down with immediate effect.
Albert Rodriguez, the interim CEO and President of MediaCo, expressed satisfaction with the company's ability to strengthen its balance sheet by repaying the note. He emphasized that this move eliminates the company's only near-term financial obligation and allows MediaCo to pursue its goal of expanding its reach to diverse audiences and fostering future growth.
MediaCo, known for its significant broadcasting and content assets, was established through the merger of two iconic New York radio stations, WBLS and Hot97, with the Estrella Media network. The company's portfolio includes FM radio stations and a low-power TV station in New York, among other assets across major U.S. cities such as Los Angeles, Chicago, Dallas, Houston, Denver, and Miami.
In addition to its broadcasting presence, MediaCo touts the Estrella Television Network, which boasts over 20,000 hours of original programming, including shows like "Tengo Talento Mucho Talento" and "Rica Famosa Latina." The network's Spanish-language news is distributed on broadcast, pay television, and multiple FAST channels. MediaCo also owns iconic R&B station WBLS, the "Home of Hip-Hop" Hot97, and Spanish language station Que Buena, featuring talent such as Funkmaster Flex (NASDAQ:FLEX) and Don Cheto.
The company is also involved in hosting music festivals and concerts and operates its own network sales office. With the repayment of the convertible note, MediaCo aims to enhance its financial stability and continue its mission in the multicultural media landscape.
This news is based on a press release statement from MediaCo Holding Inc. and reflects the company's current financial actions and strategic direction as of the date of the announcement.
In other recent news, Mediaco Holding Inc. underwent significant changes in its executive team with the appointment of Debra DeFelice as the new CFO following the resignation of Ann C. Beemish. DeFelice, a seasoned finance professional, will receive a base annual salary of $450,000, among other incentives. Concurrently, President Kudjo Sogadzi resigned, with Jacqueline Hernández stepping in as Interim President.
The company also revealed updates to its executive compensation arrangements, including new terms for COO Brian Kei, President Alberto Rodriguez, and incoming Chief Legal Officer Andrew Carington. These changes are part of the company's strategic approach to align executive incentives with company performance and shareholder interests.
In addition, Mediaco secured an additional $7.5 million credit facility, amending its existing agreements as part of efforts to bolster its financial position. Shareholders demonstrated support for the company's executive pay, re-elected three directors, and ratified Ernst & Young LLP as the independent auditors for the upcoming fiscal year.
Lastly, Mediaco expanded its portfolio by acquiring Estrella Media's network and digital operations, enhancing its Spanish-language content offerings. These are the latest developments in Mediaco's ongoing growth strategy.
InvestingPro Insights
MediaCo Holding Inc.'s recent repayment of its $7.3 million convertible promissory note aligns with the company's efforts to strengthen its financial position. This move is particularly significant given some of the financial challenges highlighted by InvestingPro data.
According to InvestingPro, MediaCo has been "quickly burning through cash" and "operates with a significant debt burden." The repayment of the note addresses these concerns directly, potentially improving the company's financial health. This is crucial, as InvestingPro data shows that MediaCo's short-term obligations exceeded its liquid assets prior to this repayment.
Despite these challenges, MediaCo has shown impressive revenue growth. InvestingPro data indicates a revenue growth of 94.96% over the last twelve months as of Q3 2024, with an even more striking quarterly revenue growth of 363.15% in Q3 2024. This robust top-line growth suggests that MediaCo's multicultural media strategy and diverse portfolio of assets are gaining traction in the market.
However, profitability remains a concern. An InvestingPro Tip notes that MediaCo "is not profitable over the last twelve months," with a negative gross profit margin of -15.08% for the same period. This underscores the importance of the company's efforts to streamline its financial obligations and focus on growth initiatives.
Investors should note that MediaCo's stock "generally trades with high price volatility," according to another InvestingPro Tip. This is evident in the stock's performance, which shows a 147.93% price return over the past year, but a -62.85% return over the last three months.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for MediaCo, providing a more comprehensive view of the company's financial health and market position.
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