#USA #New York #Madison Square Garden #New York Knicks #New York Rangers

Madison Square Garden Sports Corp. Q2 Fiscal 2025 Results

Madison Square Garden Sports Corp. (NYSE: MSGS) presented its financial results for the second quarter of fiscal year 2025, concluding on December 31, 2024. The quarter showcased a notable 9% rise in revenues, amounting to $357.8 million, compared to $326.9 million during the same period last year. This surge was primarily attributed to an increase in ticket sales, suite revenues, and sponsorship deals, along with an upswing in food, beverage, and merchandise sales.

Throughout the second quarter, the company experienced robust attendance across its teams, specifically the New York Knicks and New York Rangers, both of whom commenced their 2024-25 regular seasons with three additional home games compared to the previous year. The enthusiasm from fans was palpable and translated into significant growth in per-game revenues across all key categories, including ticketing and corporate sponsorships.

Key Financial Metrics

Analysis of key financial metrics reveals that operating income fell to $13.3 million, marking a 54% decline from $28.8 million garnered in the prior year. On the other hand, adjusted operating income settled at $20.2 million, down 45% from $37 million in the previous year. Executive Chairman and CEO James L. Dolan credited the quarter's performance to heightened fan enthusiasm and corporate demand, expressing confidence in the fundamentals of the company's business model and its potential to generate long-term shareholder value.

Revenue and Operating Expenses Breakdown

Revenue Highlights:

• - Total Revenues: $357.8 million (up 9% from $326.9 million)
• - Average Per-Game Revenue: Increased across tickets, suites, food, beverages, and merchandise, driven by additional home games played by the Knicks and Rangers.
• - Ticket-Related Revenues: Up by $14.3 million, attributable to more games at Madison Square Garden (The Garden) combined with higher average revenues per game.
• - Suite Revenue Growth: Increased by $7 million due to additional games and higher net sales of suite products.
• - Sponsorship and Signage Revenue: Jumped by $3.1 million, further bolstered by extended game attendance.

Operating Expenses Insight:

Operating expenses for the quarter expanded by 19%, totaling $275.8 million due to a rise in team personnel compensation and adjustments related to league revenue sharing. Selling, general, and administrative expenses increased to $67.9 million, reflecting an uptick primarily in operating lease costs and professional fees. However, this was somewhat mitigated by lower employee compensation and related benefits compared to last year.

Future Outlook

Despite the decrease in operating and adjusted income, Madison Square Garden Sports Corp. remains optimistic about its future, buoyed by the solid attendance at games and the ongoing demand for corporate partnerships. The continued expansion in revenue from various streams highlights the potential for recovery and growth moving forward. Dolan reiterated the company's dedication to capitalizing on these positives, emphasizing their long-term strategy focused on delivering shareholder value.

About Madison Square Garden Sports Corp.

Madison Square Garden Sports Corp. is a foremost professional sports organization that includes several prominent assets such as the New York Knicks (NBA) and the New York Rangers (NHL). The organization also controls the MSG Training Center located in Greenburgh, NY, which facilitates training and development for its teams. Additional information is accessible at www.msgsports.com.

As the economic landscape continues to evolve, MSG Sports is well-positioned to navigate through these challenges while maintaining a strong connection with its fanbase and ensuring sustained revenue growth.