MSG Entertainment Revenue Rose 6% to $243 Million in Latest Quarter

Live events company Madison Square Garden Entertainment (MSGE) improved its revenue 6% to $243 million in the fiscal third quarter ended March 31, the company announced Tuesday (May 6). Operating income of $27.3 million marked a 63% improvement. 

The results “reflect continued strong consumer and corporate demand as well as a wide variety of live events across our venues,” CEO James Dolan said in a statement. “We remain on track to deliver solid adjusted operating income growth this fiscal year and believe we are well-positioned to drive long-term value for our shareholders.” 

For the nine-month period ended March 31, revenue was up 2% to $789 million and adjusted operating income rose 13% to $224 million. 

MSGE owns and operates New York City venues Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall and the Beacon Theater, as well as The Chicago Theatre and The Christmas Spectacular Starring the Radio City Rockettes.  

Revenue from entertainment offerings rose 10% to $160 million due primarily to higher revenue from arena licensing agreements with MSG Sports, greater revenue from the Christmas Spectacular production and more revenue from venue-related sponsorship, signage and suites. 

Event-related revenue fell $3.6 million due primarily to lower revenue from concerts. The company attributed the decline to more rentals and fewer promoted events and a decrease in the number of concerts at MSGE venues. 

Arena license fees fell 1% to $36.4 million due primarily to the quarter having two fewer New York Knicks and New York Rangers games compared to the prior-year quarter. 

Food, beverage and merchandise revenue rose 1% to $45.8 million. Higher food and beverage sales at other live entertainment and sporting events were partially offset by lower sales at concerts due to the decrease in the number of concerts in the quarter. 

Following the earnings announcement on Tuesday, MSGE shares rose as high as $36.17, up 6.4%, and were up 5% to $35.67 in mid-afternoon trading.