Madison Square Garden Entertainment Corp. (NYSE:MSGE) reported first-quarter earnings on Wednesday, boasting quarterly earnings per share (EPS) of 19 cents.
The entertainment venue company, which also owns Radio City Music Hall, beat the analyst consensus estimate of a 7-cent loss by 371.43%. This represents a 141.3% improvement from a loss of 46 cents per share reported in the same period last year.
MSGE reported quarterly sales of $217.134 million, beating the analyst consensus estimate of $208.158 million by 4.31%. This represents a 37.20% increase from sales of $158.262 million reported in the same period last year, according to Benzinga Pro.
Concerts Drive Growth
Revenue from entertainment offerings rose 33% to $174.9 million. Concert revenue increased $30.1 million, reflecting more concerts at The Garden and higher revenue per concert, partly offset by fewer concerts at the company’s theaters. Other live entertainment and sporting events added $11.2 million.
Food, beverage and merchandise revenue rose 56% to $35.7 million. Higher food and beverage sales at concerts accounted for $12.5 million of the $12.9 million increase.
Costs and Income
Total direct operating expenses rose to $126.8 million from $102.4 million. Selling, general and administrative expenses rose 18% to $66.9 million, mainly because of higher employee compensation and benefits.
Operating income was $9.7 million, compared with a loss of $29.7 million a year earlier, which included a $13.8 million impairment charge, a non-cash write-down of asset value. Adjusted operating income, which excludes items such as depreciation, stock-based compensation and impairments, was $34.3 million, up from $7.1 million. Net income was $8.9 million, compared with a net loss of $21.7 million.
Cash and Buybacks
Operating activities used $26.2 million in cash, compared with $19.8 million provided a year earlier. Cash and equivalents stood at $194.2 million on Sept. 30, down from $294.2 million on June 30. Long-term debt, net of financing costs, was $533.2 million, compared with $540.3 million.
During the quarter, the company repurchased about $25 million of its Class A common stock. That brings total repurchases since its 2023 spin-off from Sphere Entertainment Co. to about $230 million.
Management Outlook
CEO James Dolan said the company will remain “well positioned to drive robust growth in both revenue and adjusted operating income this fiscal year.”
MSGE Stock Price Activity: Madison Square Garden shares were unchanged at $79.50 during premarket trading on Wednesday, according to Benzinga Pro data.
Photo by Xackery Irving via Shutterstock
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