In its 2023 Annual Earnings report, MediaCo Holding, the parent company of Hip Hop station “Hot 97” (97.1 WQHT) and Adult R&B station 107.5 WBLS in New York, has expressed substantial doubt about its ability to continue as a going concern within one year after the date that the financial statements were issued. The company says it has experienced downturns in revenues and profitability.
Here are the key points from the report:
Financial Concerns: MediaCo has experienced downturns in revenues and profitability and expects these challenges to persist for an undetermined period. As of December 31, 2023, MediaCo owes $6.5 million to Emmis in a Convertible Promissory Note with $7.1 million due through April 1, 2025. Due to debt service obligations, MediaCo management anticipates that it will be unable to meet its liquidity needs for the next twelve months using existing cash and projected cash flows from operations. The company intends to implement additional cost-cutting measures and seek additional borrowings if necessary.
Stock Delisting Risk: MediaCo’s stock is in danger of being delisted by Nasdaq. It fell below $1 per share for 30 consecutive business days in September 2023 and was given an extension until September 9, 2024, to regain compliance.
Financial Figures: Total net revenue in 2023 was $32,391,000, down from $38,595,000 in 2022 (a drop of 16.1 percent). Operating expenses for the two stations were $32,633,000, with higher non-cash lease expenses offsetting lower production and ratings costs.
Current Stock Price: MediaCo Holding stock has recently risen, closing at 53 cents per share on March 28 and 86 cents per share today.
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