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The Madison Square Garden Company Reports Fiscal 2017 Third Quarter Results

Fiscal 2017 third quarter revenue of $386.0 million, an increase of 15% versus the prior year quarter
Fiscal 2017 third quarter operating income of $6.7 million, an increase of $63.6 million versus the prior year quarter
Fiscal 2017 third quarter AOI of $43.6 million, an increase of $67.4 million versus the prior year quarter

 

New York, NY (May 4, 2017) - The Madison Square Garden Company (NYSE:MSG) today reported financial results for the third quarter ended March 31, 2017. 

 

For the fiscal 2017 third quarter, the Company generated revenues of $386.0 million, an increase of 15% as compared with the prior year period. In addition, the Company generated fiscal 2017 third quarter operating income of $6.7 million and adjusted operating income of $43.6 million, which represent increases of $63.6 million and $67.4 million, respectively, both as compared to the prior year third quarter.

 

Please note that the fiscal 2017 third quarter included $15.5 million in non-recurring NHL expansion fee revenue, and the year-ago quarter included a $41.8 million write-off of deferred production costs.

 

President and CEO David O'Connor said, "For the fiscal 2017 third quarter, we again generated strong top-line and adjusted operating income growth as we continued to more efficiently and effectively harness the strength of our live sports and entertainment assets and brands. This quarter was highlighted by our ongoing success in attracting an increasing number of premium live entertainment events to our venues, as well as solid organic growth across virtually every other area of our business, from sponsorship and signage to media rights. We are pleased with how fiscal 2017 is unfolding and remain confident that the Company is well positioned to drive attractive long-term growth for our shareholders."

 

MSG Entertainment

For the fiscal 2017 third quarter as compared to the prior year period, MSG Entertainment revenues of $77.3 million increased 6%. The increase was primarily due to higher overall event-related revenues at the Company's venues and, to a lesser extent, an increase in venue-related sponsorship, signage and suite rental fee revenues, partially offset by a decrease in revenues for the Christmas Spectacular Starring the Radio City Rockettes production. The increase in event-related revenues was primarily due to higher revenues at The Theater at Madison Square Garden, The Chicago Theatre and the Forum, partially offset by lower revenues at The Garden. The decrease in revenues for the Christmas Spectacular Starring the Radio City Rockettes production was primarily due to fewer scheduled performances in January as compared to the prior year period, partially offset by higher average paid attendance and higher average ticket prices.

 

Fiscal 2017 third quarter operating loss of $7.7 million improved by $50.7 million and adjusted operating loss of $1.5 million improved by $52.0 million, both as compared to the prior year period. The improvement in operating loss and adjusted operating loss as compared to the prior year period primarily reflects lower direct operating expenses and, to a lesser extent, the increase in revenues and lower selling, general and administrative expenses.

 

The decrease in direct operating expenses reflects the absence of a $41.8 million write-off of deferred production costs recorded in the prior year quarter related to the New York Spectacular Starring the Radio City Rockettes production and other net decreases.

 

MSG Sports

For the fiscal 2017 third quarter as compared to the prior year period, MSG Sports revenues of $308.7 million increased 17%. The increase in revenues was primarily due to higher league distributions, professional sports teams' ticket-related revenue and sponsorship and signage revenues and ad sales commissions. 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 and $15.5 million in non-recurring NHL expansion fee revenue, partially offset by other net decreases. The increase in professional sports teams' ticket-related revenue primarily reflects higher average per-game revenue as compared to the prior year period. In addition, MSG Sports revenues increased due to higher event-related revenues from other live sporting events and local media rights fees from MSG Networks Inc., as well as higher professional sports teams' food, beverage and merchandise sales.

 

Third quarter operating income of $59.9 million increased by $23.4 million and adjusted operating income of $65.9 million increased by $23.4 million. The increase in operating income and adjusted operating income primarily reflects the increase in revenue, partially offset by an increase in direct operating expenses.   

 

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 and NBA luxury tax and event-related expenses associated with other live sporting events, partially offset by a decrease in net provisions for team personnel transactions.

 

Other

For the fiscal 2017 third quarter, Other operating loss of $45.5 million and adjusted operating loss of $20.8 million increased by $10.4 million and $8.0 million, respectively, primarily due to an increase in employee compensation and related benefits and higher professional fees, partially offset by a lower provision for the Company's New York State and City capital tax.

 

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 experiences. The company presents or hosts a broad array of premier events in its diverse collection of iconic venues: New York's Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall and the Beacon Theatre; the Forum in Inglewood, CA; The Chicago Theatre; and the Wang Theatre in Boston. Other MSG properties include legendary 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). In addition, the Company 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 preeminent Boston Calling Music Festival. Also under the MSG umbrella is TAO Group, a world-class hospitality group with globally-recognized entertainment dining and nightlife brands: Tao, Marquee, Lavo, Avenue, The Stanton Social, Beauty & Essex and Vandal. More information is available at www.themadisonsquaregardencompany.com.

 

 

 

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