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The Madison Square Garden Company Reports Fiscal 2017 Second Quarter Results

Fiscal 2017 second quarter revenue of $445.2 million, an increase of 8% versus the prior year quarter
Fiscal 2017 second quarter operating income of $58.3 million, an increase of 19% versus the prior year quarter
Fiscal 2017 second quarter adjusted operating income of $96.0 million, an increase of 17% versus the prior year quarter

 

New York, NY (February 3, 2017) - The Madison Square Garden Company (NYSE: MSG) today reported financial results for the second quarter ended December 31, 2016.

 

Financial results for both the fiscal 2017 and fiscal 2016 second quarters reflect the Company's financial results on a standalone basis, including the Company's actual corporate general and administrative costs.

 

For the fiscal 2017 second quarter, the Company generated revenues of $445.2 million, an increase of 8% as compared with the prior year period. In addition, the Company generated fiscal 2017 second quarter operating income of $58.3 million and adjusted operating income of $96.0 million, which represent increases of 19% and 17%, respectively, both as compared to the prior year second quarter.

 

President and CEO David O’Connor said, “For the fiscal 2017 second quarter, we delivered robust top-line and adjusted operating income growth - driven by broad-based strength across our Entertainment and Sports businesses. In addition to a strong quarter for our core operations, we took an important step in expanding our live offerings with our purchase of a majority interest in TAO Group, which adds a complementary world-class entertainment dining and hospitality group that generates substantial adjusted operating income, with significant growth potential. Looking ahead, we are confident that with our continued commitment to delivering exceptional live experiences, we are well-positioned for attractive long-term growth and asset value creation for our shareholders.”

 

MSG Entertainment
For the fiscal 2017 second quarter as compared to the prior year period, MSG Entertainment revenues of $192.5 million increased 6%. The increase was primarily due to higher revenues for the Christmas Spectacular Starring the Radio City Rockettes production and higher overall event-related revenues at the Company's venues, as well as higher venue-related sponsorship and signage and suite rental fee revenues. The increase in revenues for the Christmas Spectacular Starring the Radio City Rockettes production was primarily due to higher average ticket prices, while the increase in event-related revenues at the Company's venues was primarily due to higher revenues at the Forum and, to a lesser extent, at The Garden, partially offset by lower revenues at The Theater at Madison Square Garden.

 

Fiscal 2017 second quarter operating income of $56.7 million increased 28% and adjusted operating income of $63.7 million increased 30%, both as compared to the prior year period. The increase in operating income and adjusted operating income as compared to the prior year period primarily reflects the increase in revenues and a decrease in direct operating expenses, slightly offset by higher selling, general and administrative expenses.

 

The decrease in direct operating expenses primarily reflects lower expenses for the Christmas Spectacular Starring the Radio City Rockettes production, partially offset by other net increases.

 

MSG Sports
For the fiscal 2017 second quarter as compared to the prior year period, MSG Sports revenues of $252.7 million increased 10%. The increase in revenues was primarily due to higher league distributions and professional sports teams' ticket-related revenue. The increase in league distributions reflects the impact of the NBA’s new national media rights agreements which began with the 2016-17 NBA regular season, partially offset by other net decreases. The increase in professional sports teams' ticket-related revenue primarily reflects higher average per-game revenue and one more New York Rangers pre-season game as compared to the prior year period. In addition, MSG Sports revenues increased due to higher event-related revenues from other live sporting events, professional sports teams' food, beverage and merchandise sales, and local media rights fees from MSG Networks Inc.

 

Second quarter operating income decreased by $0.3 million to $40.2 million and adjusted operating income increased by $1.5 million to $47.2 million. The decrease in operating income primarily reflects an increase in direct operating expenses and, to a lesser extent, an increase in selling, general and administrative expenses (including stock-based compensation expense), largely offset by the increase in revenues. The increase in adjusted operating income primarily reflects the increase in revenues, largely offset by higher direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses (excluding stock-based compensation expense).

 

The increase in direct operating expenses primarily reflects higher team personnel compensation costs and, to a lesser extent, higher net provisions for NBA and NHL revenue sharing expense, event-related expenses associated with other live sporting events, and other team operating expenses.

 

Other
For the fiscal 2017 second quarter, Other operating loss of $38.7 million and adjusted operating loss of $14.9 million increased by $2.9 million and $2.4 million, respectively, primarily due to higher employee compensation and related benefits and an increase in the Company's provision for New York State and City capital tax, partially offset by lower professional fees.

 

Click here for the full press release.

 

About The Madison Square Garden Company
The Madison Square Garden Company (MSG) is a world leader in live sports and entertainment that presents or hosts a broad array of world-class events — including concerts, sporting events, family shows and special events - in an unparalleled mix of celebrated venues that span four of the nation’s largest entertainment markets. Those venues are: New York’s Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre; the Forum in Inglewood, CA; The Chicago Theatre; and the Wang Theatre in Boston. In addition, MSG has a diverse collection of properties that includes some of the most widely-recognized sports franchises: the New York Knicks (NBA), the New York Rangers (NHL) and the New York Liberty (WNBA), along with two development league teams -- the Westchester Knicks (NBADL) and the Hartford Wolf Pack (AHL). The Company also features popular original entertainment productions -- the Christmas Spectacular and New York Spectacular - both starring the Radio City Rockettes, and through Boston Calling Events, produces outdoor festivals, including New England’s premier Boston Calling Music Festival. More information is available at www.themadisonsquaregardencompany.com.

 

 

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