MADISON SQUARE GARDEN SPORTS CORP. REPORTS FISCAL 2024 FOURTH QUARTER AND FULL-YEAR RESULTS
Madison Square Garden Sports Corp. (NYSE: MSGS) reported record financial results for fiscal 2024, with revenues exceeding $1 billion, up 16% year-over-year. The company's operating income increased 71% to $146.0 million, while adjusted operating income rose 50% to $172.2 million. The strong performance was driven by robust demand for the New York Knicks and New York Rangers, both of which had successful regular seasons and playoff runs.
For the fiscal 2024 fourth quarter, MSGS reported revenues of $227.3 million, a 79% increase from the prior year quarter. Operating income for the quarter was $52.3 million, compared to a loss in the previous year. The impressive results were attributed to higher playoff-related revenues, increased regular season ticket sales, and growth in suite revenues and sponsorships.
Madison Square Garden Sports Corp. (NYSE: MSGS) ha riportato risultati finanziari record per l'anno fiscale 2024, con ricavi che superano 1 miliardo di dollari, in aumento del 16% rispetto all'anno precedente. L'utile operativo dell'azienda è aumentato del 71% a 146,0 milioni di dollari, mentre l'utile operativo rettificato è salito del 50% a 172,2 milioni di dollari. Le solide performance sono state supportate dalla forte domanda per i New York Knicks e i New York Rangers, entrambi con stagioni regolari e percorsi nei playoff di successo.
Per il quarto trimestre dell'anno fiscale 2024, MSGS ha riportato ricavi di 227,3 milioni di dollari, un incremento del 79% rispetto allo stesso trimestre dell'anno precedente. L'utile operativo per il trimestre è stato di 52,3 milioni di dollari, rispetto a una perdita nell'anno precedente. I risultati impressionanti sono stati attribuiti a maggiori ricavi legati ai playoff, all'aumento delle vendite di biglietti per la stagione regolare e alla crescita dei ricavi dalle suite e dalle sponsorizzazioni.
Madison Square Garden Sports Corp. (NYSE: MSGS) reportó resultados financieros récord para el año fiscal 2024, con ingresos que superaron 1 millardo de dólares, lo que representa un aumento del 16% interanual. El ingreso operativo de la empresa aumentó un 71% a 146,0 millones de dólares, mientras que el ingreso operativo ajustado creció un 50% a 172,2 millones de dólares. Este sólido desempeño fue impulsado por la robusta demanda de los New York Knicks y los New York Rangers, que tuvieron temporadas regulares y campañas de playoffs exitosas.
Para el cuarto trimestre del año fiscal 2024, MSGS reportó ingresos de 227,3 millones de dólares, un aumento del 79% con respecto al mismo trimestre del año anterior. El ingreso operativo para el trimestre fue de 52,3 millones de dólares, en comparación con una pérdida en el año anterior. Los resultados impresionantes se atribuyen a mayores ingresos relacionados con los playoffs, aumento en las ventas de boletos de la temporada regular, y a un crecimiento en los ingresos de suites y patrocinios.
매디슨 스퀘어 가든 스포츠 주식회사 (NYSE: MSGS)는 2024 회계연도에 대해 기록적인 재정 실적을 보고했으며, 수익이 10억 달러를 초과하고 전년 대비 16% 증가했습니다. 회사의 운영 수익은 71% 증가하여 1억 4600만 달러1억 7220만 달러에 이르렀습니다. 이러한 강력한 성과는 뉴욕 닉스와 뉴욕 레인저스에 대한 강한 수요에 의해 이끌어졌으며, 두 팀 모두 성공적인 정규 시즌과 플레이오프를 진행했습니다.
2024 회계연도 4분기 동안 MSGS는 2억 2730만 달러의 수익을 보고했으며, 이는 전년 동기 대비 79% 증가한 것입니다. 분기 운영 수익은 5230만 달러로, 전년도에는 손실이었습니다. 이러한 인상적인 결과는 플레이오프 관련 수익 증가, 정규 시즌 티켓 판매 증가, 스위트 수익 및 스폰서십의 성장에 기인합니다.
Madison Square Garden Sports Corp. (NYSE: MSGS) a rapporté des résultats financiers records pour l'exercice 2024, avec des revenus dépassant 1 milliard de dollars, en hausse de 16 % par rapport à l'année précédente. Le bénéfice d'exploitation de l'entreprise a augmenté de 71 % pour atteindre 146,0 millions de dollars, tandis que le bénéfice d'exploitation ajusté a augmenté de 50 % pour atteindre 172,2 millions de dollars. Cette performance solide a été stimulée par une forte demande pour les New York Knicks et les New York Rangers, qui ont tous deux connu des saisons régulières et des parcours en playoffs réussis.
Pour le quatrième trimestre de l'exercice 2024, MSGS a annoncé des revenus de 227,3 millions de dollars, soit une augmentation de 79 % par rapport à l'année précédente. Le bénéfice d'exploitation pour le trimestre s'élevait à 52,3 millions de dollars, contre une perte l'année précédente. Les résultats impressionnants sont attribués à des revenus accrus liés aux playoffs, à une augmentation des ventes de billets pour la saison régulière et à la croissance des revenus des suites et des parrainages.
Die Madison Square Garden Sports Corp. (NYSE: MSGS) meldete für das Geschäftsjahr 2024 rekordverdächtige Finanzergebnisse, mit Einnahmen von über 1 Milliarde Dollar, was einem Anstieg von 16 % im Jahresvergleich entspricht. Der Betriebsgewinn des Unternehmens stieg um 71 % auf 146,0 Millionen Dollar, während der bereinigte Betriebsgewinn um 50 % auf 172,2 Millionen Dollar anstieg. Die starke Leistung wurde durch die hohe Nachfrage nach den New York Knicks und den New York Rangers vorangetrieben, die beide erfolgreiche reguläre Saisons und Playoff-Runden hatten.
Für das vierte Quartal des Geschäftsjahres 2024 berichtete MSGS von Einnahmen in Höhe von 227,3 Millionen Dollar, was einem Anstieg von 79 % im Vergleich zum Vorjahr entspricht. Der Betriebsgewinn für das Quartal betrug 52,3 Millionen Dollar, verglichen mit einem Verlust im Vorjahr. Die beeindruckenden Ergebnisse wurden durch höhere Einnahmen aus den Playoffs, gestiegene Ticketverkäufe für die reguläre Saison sowie Wachstum bei Suite-Einnahmen und Sponsoring erklärt.
- Record revenues of over $1 billion for fiscal 2024, up 16% year-over-year
- Operating income increased 71% to $146.0 million for fiscal 2024
- Adjusted operating income rose 50% to $172.2 million for fiscal 2024
- Q4 revenues up 79% to $227.3 million compared to prior year quarter
- Q4 operating income of $52.3 million, compared to a loss in the previous year
- Playoff-related revenues increased $71.8 million in Q4
- Regular season ticket-related revenues increased $14.4 million in Q4
- Suite revenues increased $5.9 million in Q4
- Direct operating expenses increased 34% to $107.7 million in Q4
- Selling, general and administrative expenses rose 15% to $66.4 million in Q4
Madison Square Garden Sports Corp.'s fiscal 2024 results are impressively strong. The company achieved record revenues of
The fourth quarter performance was particularly robust, with revenues jumping
However, investors should note the increase in direct operating expenses and selling, general and administrative costs. While these are partly due to increased activity, maintaining cost efficiency will be important for long-term profitability.
The success of both the Knicks and Rangers in reaching advanced playoff stages has significantly boosted MSGS's financial performance. This underscores the value of competitive teams in major markets. The
The introduction of new premium hospitality offerings shows MSGS is innovating to maximize revenue per attendee. This strategy, combined with strong ticket sales and sponsorships, demonstrates effective monetization of the fan base.
The non-recurring territorial fee from the NHL is interesting and suggests potential for similar opportunities in the future. However, the sustainability of such high growth rates may be challenging, as they're heavily dependent on team performance and playoff success, which can vary year to year.
MSGS's results reflect a strong rebound in live sports attendance and engagement post-pandemic. The record revenues indicate robust consumer demand for sports entertainment, particularly in a major market like New York. The successful playoff runs of both teams have clearly resonated with fans, translating to significant financial gains.
The increase in sponsorship and signage revenues by
Looking ahead, MSGS's performance will likely remain tied to team success and broader economic factors affecting consumer spending on entertainment. The company's ability to continue innovating with offerings like new premium hospitality options will be important in maintaining growth momentum and mitigating the inherent volatility of sports team performance.
Record Revenues of Over
Record Operating Income of
The fiscal 2024 fourth quarter was highlighted by the New York Knicks (the "Knicks") and New York Rangers (the "Rangers") both qualifying for the playoffs, culminating with the Knicks advancing to the Eastern Conference Semifinals and the Rangers advancing to the Eastern Conference Finals. Fiscal fourth quarter results reflected strong demand from fans and partners, as well as the positive impact of a combined four more Knicks and Rangers regular season home games at the Madison Square Garden Arena ("The Garden") and a combined seven more playoff home games, both as compared to the prior year period.
For fiscal 2024, the Company reported revenues of
For the fiscal 2024 fourth quarter, the Company reported revenues of
Madison Square Garden Sports Corp. Executive Chairman and CEO James L. Dolan said, "Our Company delivered record financial results in fiscal 2024, driven by robust demand for the Knicks and the Rangers, as both teams had successful regular seasons which led to playoff runs. Looking ahead, we remain confident in the strength of our professional sports franchises and believe we are well positioned to generate long-term shareholder value."
Results from Operations
Results for the quarter and year ended June 30, 2024 and 2023 are as follows:
Three Months Ended | Twelve Months Ended | |||||||||||||||
June 30, | Change | June 30, | Change | |||||||||||||
$ millions | 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | ||||||||
Revenues | $ 227.3 | $ 126.9 | $ 100.3 | 79 % | $ 1,027.1 | $ 887.4 | $ 139.7 | 16 % | ||||||||
Operating income (loss) | $ 52.3 | $ (12.2) | $ 64.5 | NM | $ 146.0 | $ 85.2 | $ 60.9 | 71 % | ||||||||
Adjusted operating income (loss)(1) | $ 56.5 | $ (7.8) | $ 64.3 | NM | $ 172.2 | $ 115.0 | $ 57.2 | 50 % | ||||||||
Note: Amounts may not foot due to rounding. NM - Absolute percentages greater than | |
(1) | See page 3 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of financial measures not calculated in accordance with generally accepted accounting principles ("GAAP"). During the fourth quarter of fiscal 2023, the Company amended this definition so that the non-cash portion of operating lease costs (which was |
Summary of Reported Results from Operations for the Fiscal 2024 Fourth Quarter
For the fiscal 2024 fourth quarter, the Company generated revenues of
Playoff-related revenues increased
Regular season ticket-related revenues increased
Suite revenues increased
Sponsorship and signage revenues increased
Revenues from league distributions increased
Direct operating expenses of
Selling, general and administrative expenses of
Operating income of
About Madison Square Garden Sports Corp.
Madison Square Garden Sports Corp. (MSG Sports) is a leading professional sports company, with a collection of assets that includes the New York Knicks (NBA) and the New York Rangers (NHL), as well as two development league teams – the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL). MSG Sports also operates a professional sports team performance center – the MSG Training Center in Greenburgh, NY. More information is available at www.msgsports.com.
Non-GAAP Financial Measures
During the fourth quarter of fiscal 2023, the Company amended its definition of adjusted operating income (loss) so that the impact of the non-cash portion of operating lease costs related to the Company's arena license agreements with MSG Entertainment is no longer excluded in the calculation of adjusted operating income (loss) in all periods presented.
We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) excluding (i) depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, (iv) gains or losses on sales or dispositions of businesses, (v) the impact of purchase accounting adjustments related to business acquisitions, and (vi) gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan. Because it is based upon operating income (loss), adjusted operating income (loss) also excludes interest expense (including cash interest expense) and other non-operating income and expense items. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of our business without regard to the settlement of an obligation that is not expected to be made in cash. In addition, we believe that the exclusion of gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan provides investors with a clearer picture of the Company's operating performance given that, in accordance with
We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our Company. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management's effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 5 of this earnings release.
Forward-Looking Statements
This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industry in which it operates, and the factors described in the Company's filings with the Securities and Exchange Commission, including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.
Contacts: | |
Ari Danes, CFA Investor Relations and Financial Communications (212) 465-6072 | Justin Blaber Financial Communications (212) 465-6109 |
Grace Kaminer Investor Relations (212) 631-5076 |
Conference Call Information:
The conference call will be Webcast live today at 10:00 a.m. ET at investor.msgsports.com
Conference call dial-in number is 888-660-6386 / Conference ID Number 6996895
Conference call replay number is 800-770-2030 / Conference ID Number 6996895 until August 20, 2024
MADISON SQUARE GARDEN SPORTS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | ||||||||
Three Months Ended | Twelve Months Ended | |||||||
June 30, | June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Revenues | $ 227,251 | $ 126,920 | $ 887,447 | |||||
Direct operating expenses | 107,743 | 80,377 | 616,514 | 548,811 | ||||
Selling, general and administrative expenses | 66,413 | 57,866 | 261,433 | 249,885 | ||||
Depreciation and amortization | 792 | 874 | 3,164 | 3,577 | ||||
Operating income (loss) | 52,303 | (12,197) | 146,038 | 85,174 | ||||
Other income (expense): | ||||||||
Interest income | 1,238 | 765 | 2,787 | 2,392 | ||||
Interest expense | (6,320) | (6,489) | (27,589) | (22,884) | ||||
Miscellaneous (expense) income, net | (4,491) | 5,696 | (15,568) | 25,239 | ||||
Income (loss) before income taxes | 42,730 | (12,225) | 105,668 | 89,921 | ||||
Income tax (expense) benefit | (17,239) | 2,731 | (46,897) | (44,293) | ||||
Net income (loss) | 25,491 | (9,494) | 58,771 | 45,628 | ||||
Less: Net loss attributable to nonredeemable noncontrolling interests | — | (237) | — | (2,165) | ||||
Net income (loss) attributable to Madison Square Garden Sports Corp.'s stockholders | $ 25,491 | $ (9,257) | $ 58,771 | $ 47,793 | ||||
Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.'s stockholders | $ 1.06 | $ (0.39) | $ 2.45 | $ 1.90 | ||||
Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.'s stockholders | $ 1.06 | $ (0.39) | $ 2.44 | $ 1.89 | ||||
Basic weighted-average number of common shares outstanding | 24,030 | 23,961 | 24,011 | 24,090 | ||||
Diluted weighted-average number of common shares outstanding | 24,156 | 23,961 | 24,096 | 24,194 | ||||
MADISON SQUARE GARDEN SPORTS CORP.
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO
ADJUSTED OPERATING INCOME (LOSS)
(In thousands)
(Unaudited)
The following is a description of the adjustments to operating income (loss) to arrive at adjusted operating income (loss) as described in this earnings release:
- Depreciation and amortization. This adjustment eliminates depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets in all periods.
- Share-based compensation. This adjustment eliminates the compensation expense related to restricted stock units, performance stock units and stock options granted under the Company's employee stock plan and non-employee director plan in all periods.
- Remeasurement of deferred compensation plan liabilities. This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the Company's executive deferred compensation plan.
Three Months Ended | Twelve Months Ended | |||||||
June 30, | June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Operating income (loss) | $ 52,303 | $ (12,197) | $ 146,038 | $ 85,174 | ||||
Depreciation and amortization | 792 | 874 | 3,164 | 3,577 | ||||
Share-based compensation | 3,222 | 3,144 | 21,291 | 25,203 | ||||
Remeasurement of deferred compensation plan liabilities | 193 | 377 | 1,749 | 1,091 | ||||
Adjusted operating income (loss)(1) | $ 56,510 | $ (7,802) | $ 172,242 | $ 115,045 | ||||
____________________ |
(1) During the fourth quarter of fiscal 2023, the Company amended its definition of adjusted operating income so that the impact of the non-cash portion of operating lease costs related to the Company's arena license agreements with MSG Entertainment is no longer excluded. Pursuant to GAAP, recognition of operating lease costs is recorded on a straight-line basis over the term of the agreement based upon the value of total future payments under the arrangement. As a result, operating lease costs is comprised of a contractual cash component plus or minus a non-cash component for each period presented. Operating expense includes operating lease costs of (i) |
MADISON SQUARE GARDEN SPORTS CORP. CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited) | ||||
June 30, | ||||
2024 | 2023 | |||
ASSETS | ||||
Current Assets: | ||||
Cash and cash equivalents | $ 89,136 | $ 40,398 | ||
Restricted cash | 5,771 | 61 | ||
Accounts receivable, net | 33,781 | 40,139 | ||
Net related party receivables | 32,255 | 15,969 | ||
Prepaid expenses | 30,956 | 24,768 | ||
Other current assets | 25,043 | 27,898 | ||
Total current assets | 216,942 | 149,233 | ||
Property and equipment, net | 28,541 | 30,501 | ||
Right-of-use lease assets | 694,566 | 715,283 | ||
Indefinite-lived intangible assets | 103,644 | 103,644 | ||
Goodwill | 226,523 | 226,523 | ||
Investments | 62,543 | 67,374 | ||
Other assets | 13,533 | 22,459 | ||
Total assets | $ 1,346,292 | $ 1,315,017 | ||
MADISON SQUARE GARDEN SPORTS CORP. CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except per share data) (Unaudited) | ||||
June 30, | ||||
2024 | 2023 | |||
LIABILITIES AND EQUITY | ||||
Current Liabilities: | ||||
Accounts payable | $ 9,900 | $ 9,093 | ||
Net related party payables | 6,718 | 5,842 | ||
Debt | 30,000 | 30,000 | ||
Accrued liabilities: | ||||
Employee related costs | 133,930 | 144,310 | ||
League-related accruals | 120,876 | 106,926 | ||
Other accrued liabilities | 21,613 | 17,561 | ||
Operating lease liabilities, current | 50,267 | 49,745 | ||
Deferred revenue | 148,678 | 157,051 | ||
Total current liabilities | 521,982 | 520,528 | ||
Long-term debt | 275,000 | 295,000 | ||
Operating lease liabilities, noncurrent | 749,952 | 746,437 | ||
Defined benefit obligations | 4,103 | 4,526 | ||
Other employee related costs | 43,493 | 49,070 | ||
Deferred tax liabilities, net | 16,925 | 24,024 | ||
Deferred revenue, noncurrent | 1,147 | 12,666 | ||
Total liabilities | 1,612,602 | 1,652,251 | ||
Commitments and contingencies | ||||
Madison Square Garden Sports Corp. Stockholders' Equity: | ||||
Class A Common stock, par value | 204 | 204 | ||
Class B Common stock, par value | 45 | 45 | ||
Preferred stock, par value | — | — | ||
Additional paid-in capital | 19,079 | 16,846 | ||
Treasury stock, at cost, 1,025 and 1,084 shares as of June 30, 2024 and 2023, respectively | (169,547) | (179,410) | ||
Accumulated deficit | (115,139) | (173,910) | ||
Accumulated other comprehensive loss | (952) | (1,009) | ||
Total equity | (266,310) | (337,234) | ||
Total liabilities and equity | $ 1,346,292 | $ 1,315,017 | ||
MADISON SQUARE GARDEN SPORTS CORP. SELECTED CASH FLOW INFORMATION (In thousands) (Unaudited) | ||||
Twelve Months Ended | ||||
June 30, | ||||
2024 | 2023 | |||
Net cash provided by operating activities | $ 92,131 | $ 152,473 | ||
Net cash used in investing activities | (8,898) | (17,759) | ||
Net cash used in financing activities | (28,785) | (185,273) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 54,448 | (50,559) | ||
Cash, cash equivalents and restricted cash from beginning of period | 40,459 | 91,018 | ||
Cash, cash equivalents and restricted cash at end of period | $ 94,907 | $ 40,459 | ||
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SOURCE Madison Square Garden Sports Corp.
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