MADISON SQUARE GARDEN SPORTS CORP. REPORTS FISCAL 2025 SECOND QUARTER RESULTS
Madison Square Garden Sports Corp. (NYSE: MSGS) reported its fiscal 2025 second quarter results, showing mixed performance. Revenues increased by 9% to $357.8 million compared to the prior year, driven by higher ticket-related revenues, suite revenues, and sponsorship. The growth was partially attributed to the Knicks and Rangers playing three more home games at Madison Square Garden Arena.
However, operating income decreased by 54% to $13.3 million, and adjusted operating income fell by 45% to $20.2 million. The decline was primarily due to increased direct operating expenses, including higher team personnel compensation ($15.2 million) and higher net provisions for league revenue sharing and NBA luxury tax ($14.9 million).
Key revenue improvements included pre/regular season ticket-related revenues (+$14.3 million), suite revenues (+$7.0 million), and sponsorship and signage revenues (+$3.1 million). Direct operating expenses increased by 19% to $275.8 million.
Madison Square Garden Sports Corp. (NYSE: MSGS) ha riportato i risultati del secondo trimestre dell'anno fiscale 2025, mostrando una performance mista. I ricavi sono aumentati del 9% a 357,8 milioni di dollari rispetto all'anno precedente, grazie a maggiori entrate legate ai biglietti, alle suite e agli sponsor. La crescita è stata attribuita in parte al fatto che i Knicks e i Rangers hanno giocato tre partite in più in casa all'Arena Madison Square Garden.
Tuttavia, l'utile operativo è diminuito del 54% a 13,3 milioni di dollari, mentre l'utile operativo corretto è sceso del 45% a 20,2 milioni di dollari. Il calo è stato principalmente causato dall'aumento delle spese operative dirette, inclusi i costi per il personale delle squadre (15,2 milioni di dollari) e le maggiori disposizioni nette per la condivisione dei ricavi della lega e l'imposta di lusso NBA (14,9 milioni di dollari).
I principali miglioramenti delle entrate includono incassi da biglietti della preseason/stagione regolare (+14,3 milioni di dollari), entrate dalle suite (+7,0 milioni di dollari) e ricavi da sponsorizzazione e cartelloni pubblicitari (+3,1 milioni di dollari). Le spese operative dirette sono aumentate del 19% a 275,8 milioni di dollari.
Madison Square Garden Sports Corp. (NYSE: MSGS) informó sobre los resultados del segundo trimestre del año fiscal 2025, mostrando un rendimiento mixto. Los ingresos aumentaron un 9% hasta los 357,8 millones de dólares en comparación con el año anterior, impulsados por mayores ingresos relacionados con boletos, ingresos por suites y patrocinios. El crecimiento se atribuyó en parte a que los Knicks y los Rangers jugaron tres partidos más en casa en el Madison Square Garden Arena.
Sin embargo, el ingreso operativo disminuyó un 54% hasta los 13,3 millones de dólares, y el ingreso operativo ajustado cayó un 45% hasta los 20,2 millones de dólares. La caída fue principalmente debido al aumento de los gastos operativos directos, incluidos los mayores pagos al personal del equipo (15,2 millones de dólares) y mayores provisiones netas para la participación en ingresos de la liga y el impuesto de lujo de la NBA (14,9 millones de dólares).
Las mejoras clave en los ingresos incluyeron ingresos por boletos de pretemporada/temporada regular (+14,3 millones de dólares), ingresos por suites (+7,0 millones de dólares) y ingresos por patrocinios y publicidad (+3,1 millones de dólares). Los gastos operativos directos aumentaron un 19% hasta los 275,8 millones de dólares.
매디슨 스퀘어 가든 스포츠 주식회사 (NYSE: MSGS)는 2025 회계연도 2분기 실적을 발표하며 혼합된 성과를 보였습니다. 수입은 작년에 비해 9% 증가하여 3억 5천7백80만 달러에 도달했으며, 이는 더 많은 티켓 관련 수익, 스위트 수익 및 후원 덕분입니다. 이 성장은 닉스와 레인저스가 매디슨 스퀘어 가든 아레나에서 3경기를 더 치른 것에 기인합니다.
그러나 운영 수익은 54% 감소하여 1천3백30만 달러에 이르렀고, 조정된 운영 수익은 45% 감소하여 2천20만 달러로 줄었습니다. 감소의 주요 원인은 팀 인건비(1천5백20만 달러) 증가와 리그 수익 공유 및 NBA 사치세에 대한 순부족금(1천4백90만 달러)이 포함된 직접 운영비 증가입니다.
주요 수익 개선 사항에는 프리시즌/정규 시즌 티켓 관련 수익(+1천4백30만 달러), 스위트 수익(+7백만 달러) 및 후원 및 광고 수익(+3천1백만 달러)이 포함되었습니다. 직접 운영비는 19% 증가하여 2억 7천5백80만 달러에 달했습니다.
Madison Square Garden Sports Corp. (NYSE: MSGS) a annoncé ses résultats pour le deuxième trimestre de l'exercice 2025, affichant des performances mixtes. Les revenus ont augmenté de 9% pour atteindre 357,8 millions de dollars par rapport à l'année précédente, grâce à des revenus liés aux billets, des revenus de suites et des parrainages plus élevés. Cette croissance est en partie attribuée aux Knicks et aux Rangers qui ont joué trois matchs de plus à domicile au Madison Square Garden Arena.
Cependant, le résultat opérationnel a diminué de 54% pour s'établir à 13,3 millions de dollars, et le résultat opérationnel ajusté a chuté de 45% à 20,2 millions de dollars. Cette baisse est principalement due à l'augmentation des dépenses opérationnelles directes, y compris la hausse des salaires du personnel de l'équipe (15,2 millions de dollars) et des provisions nettes pour le partage des revenus de la ligue et la taxe de luxe de la NBA (14,9 millions de dollars).
Les améliorations clés des revenus comprenaient les recettes liées aux billets de pré-saison/de saison régulière (+14,3 millions de dollars), les revenus des suites (+7,0 millions de dollars) et les revenus de parrainage et de signalisation (+3,1 millions de dollars). Les dépenses opérationnelles directes ont augmenté de 19% pour atteindre 275,8 millions de dollars.
Madison Square Garden Sports Corp. (NYSE: MSGS) hat die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 veröffentlicht, die eine gemischte Leistung zeigen. Die Einnahmen stiegen um 9% auf 357,8 Millionen Dollar im Vergleich zum Vorjahr, was auf höhere Ticket-bezogene Einnahmen, Suite-Einnahmen und Sponsoring zurückzuführen ist. Das Wachstum wurde teilweise den Knicks und Rangers zugeschrieben, die drei weitere Heimspiele in der Madison Square Garden Arena gespielt haben.
Die Betriebseinnahmen fielen jedoch um 54% auf 13,3 Millionen Dollar, und der adjustierte Betriebserfolg sank um 45% auf 20,2 Millionen Dollar. Der Rückgang war hauptsächlich auf gestiegene direkte Betriebskosten zurückzuführen, einschließlich höherer Teammitarbeitervergütungen (15,2 Millionen Dollar) und höherer Nettovorsorgen für die Einnahmenbeteiligung in der Liga und die NBA Luxussteuer (14,9 Millionen Dollar).
Wesentliche Verbesserungen der Einnahmen umfassten Einnahmen aus Ticketverkäufen in der Vorsaison/Regulärsaison (+14,3 Millionen Dollar), Suite-Einnahmen (+7,0 Millionen Dollar) sowie Sponsoring- und Werbeeinnahmen (+3,1 Millionen Dollar). Die direkten Betriebskosten stiegen um 19% auf 275,8 Millionen Dollar.
- Revenue growth of 9% to $357.8 million
- Increased ticket-related revenues by $14.3 million
- Suite revenues up by $7.0 million
- Sponsorship and signage revenues increased by $3.1 million
- Higher national media rights fees contributing to increased league distributions
- Operating income decreased 54% to $13.3 million
- Adjusted operating income fell 45% to $20.2 million
- Direct operating expenses increased 19% to $275.8 million
- Higher team personnel compensation costs of $15.2 million
- Increased NBA luxury tax and revenue sharing expenses of $14.9 million
Insights
MSG Sports' Q2 FY2025 results reveal a complex financial picture that warrants careful analysis. While the
Revenue Strength:
- Ticket revenues grew substantially, with higher per-game revenue across all key categories
- Suite revenues increased by
$7.0 million , indicating robust premium segment demand - Sponsorship and signage revenues rose by
$3.1 million , reflecting strong corporate interest
Cost Pressures:
- Direct operating expenses surged
19% , primarily due to$15.2 million increase in team personnel compensation - Higher provisions for league revenue sharing and NBA luxury tax (up
$14.9 million ) $7.6 million in provisions for team personnel transactions
The significant margin compression, evidenced by the
During the fiscal 2025 second quarter, the New York Knicks ("Knicks") and New York Rangers ("Rangers") began their 2024-25 regular seasons, playing a combined three more games at the Madison Square Garden Arena ("The Garden") as compared to the prior year quarter. In addition to the positive impact of those additional home games, the Company's results also reflect ongoing strong demand for its teams. Fiscal 2025 second quarter average per-game revenues for every key revenue category – tickets, suites, sponsorship and food, beverage and merchandise – exceeded results for the prior year period. Operating income and adjusted operating income results also reflect the impact of the Knicks' and Rangers' rosters for the 2024-25 seasons.
For the fiscal 2025 second quarter, the Company generated revenues of
Madison Square Garden Sports Corp. Executive Chairman and CEO James L. Dolan said, "In the fiscal second quarter, fan enthusiasm and robust corporate demand helped drive growth in per-game revenues across all key areas of our business. We remain confident in the fundamentals of our business and our ability to drive long-term shareholder value."
Financial Results for the Three and Six Months Ended December 31, 2024 and 2023:
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | Change | December 31, | Change | |||||||||||||
$ millions | 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | ||||||||
Revenues | $ 357.8 | $ 326.9 | $ 30.9 | 9 % | $ 411.1 | $ 369.9 | $ 41.1 | 11 % | ||||||||
Operating income | $ 13.3 | $ 28.8 | $ (15.5) | (54) % | $ 5.0 | $ 14.0 | $ (9.0) | (64) % | ||||||||
Adjusted operating income(1) | $ 20.2 | $ 37.0 | $ (16.8) | (45) % | $ 18.0 | $ 27.0 | $ (9.1) | (33) % | ||||||||
Note: | Does not foot due to rounding |
1. | See page 3 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures. |
Summary of Financial Results
For the fiscal 2025 second quarter, revenues of
Pre/regular season ticket-related revenues increased
Suite revenues increased
Sponsorship and signage revenues increased
Revenues from league distributions increased
Pre/regular season food, beverage and merchandise sales increased
Local media rights fees 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
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 February 11, 2025
MADISON SQUARE GARDEN SPORTS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | ||||||||
Three Months Ended | Six Months Ended | |||||||
December 31, | December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Revenues | $ 357,759 | $ 326,898 | $ 411,066 | $ 369,944 | ||||
Direct operating expenses | 275,753 | 232,225 | 283,964 | 235,745 | ||||
Selling, general and administrative expenses | 67,900 | 65,066 | 120,487 | 118,622 | ||||
Depreciation and amortization | 791 | 790 | 1,573 | 1,584 | ||||
Operating income | 13,315 | 28,817 | 5,042 | 13,993 | ||||
Other income (expense): | ||||||||
Interest income | 690 | 619 | 1,554 | 1,072 | ||||
Interest expense | (5,587) | (7,419) | (11,642) | (14,348) | ||||
Miscellaneous (expense) income, net | (6,609) | 2,991 | (7,735) | (9,674) | ||||
Income (loss) before income taxes | 1,809 | 25,008 | (12,781) | (8,957) | ||||
Income tax (expense) benefit | (698) | (10,784) | 6,350 | 4,360 | ||||
Net income (loss) | $ 1,111 | $ 14,224 | $ (6,431) | $ (4,597) | ||||
Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.'s stockholders | $ 0.05 | $ 0.59 | $ (0.27) | $ (0.19) | ||||
Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.'s stockholders | $ 0.05 | $ 0.59 | $ (0.27) | $ (0.19) | ||||
Basic weighted-average number of common shares outstanding | 24,100 | 24,017 | 24,074 | 23,994 | ||||
Diluted weighted-average number of common shares outstanding | 24,167 | 24,065 | 24,074 | 23,994 | ||||
MADISON SQUARE GARDEN SPORTS CORP.
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO
ADJUSTED OPERATING INCOME
(In thousands)
(Unaudited)
The following is a description of the adjustments to operating income in arriving at adjusted operating income 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 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 | Six Months Ended | |||||||
December 31, | December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Operating income | $ 13,315 | $ 28,817 | $ 5,042 | $ 13,993 | ||||
Depreciation and amortization | 791 | 790 | 1,573 | 1,584 | ||||
Share-based compensation | 5,991 | 6,570 | 10,259 | 10,719 | ||||
Remeasurement of deferred compensation plan liabilities | 142 | 839 | 1,107 | 735 | ||||
Adjusted operating income(1) | $ 20,239 | $ 37,016 | $ 17,981 | $ 27,031 | ||||
____________________ | |
(1) | Adjusted operating income includes operating lease costs which is comprised of a contractual cash component plus or minus a non-cash component for each period presented. 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. Adjusted operating income includes operating lease costs of (i) |
MADISON SQUARE GARDEN SPORTS CORP. CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited) | ||||
December 31, | June 30, | |||
ASSETS | ||||
Current Assets: | ||||
Cash and cash equivalents | $ 107,823 | $ 89,136 | ||
Restricted cash | 8,030 | 5,771 | ||
Accounts receivable, net of allowance for doubtful accounts of 2024 and June 30, 2024 | 79,395 | 33,781 | ||
Net related party receivables | 19,994 | 32,255 | ||
Prepaid expenses | 61,462 | 30,956 | ||
Other current assets | 20,423 | 25,043 | ||
Total current assets | 297,127 | 216,942 | ||
Property and equipment, net of accumulated depreciation and amortization of and | 27,890 | 28,541 | ||
Right-of-use lease assets | 685,692 | 694,566 | ||
Indefinite-lived intangible assets | 103,644 | 103,644 | ||
Goodwill | 226,523 | 226,523 | ||
Investments | 58,734 | 62,543 | ||
Other assets | 12,838 | 13,533 | ||
Total assets | $ 1,412,448 | $ 1,346,292 | ||
MADISON SQUARE GARDEN SPORTS CORP. CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except per share data) (Unaudited) | ||||
December 31, | June 30, | |||
LIABILITIES AND EQUITY | ||||
Current Liabilities: | ||||
Accounts payable | $ 6,396 | $ 9,900 | ||
Net related party payables | 7,468 | 6,718 | ||
Debt | 30,000 | 30,000 | ||
Accrued liabilities: | ||||
Employee related costs | 87,371 | 133,930 | ||
League-related accruals | 143,484 | 120,876 | ||
Other accrued liabilities | 10,630 | 21,613 | ||
Operating lease liabilities, current | 49,854 | 50,267 | ||
Deferred revenue | 267,783 | 148,678 | ||
Total current liabilities | 602,986 | 521,982 | ||
Long-term debt | 275,000 | 275,000 | ||
Operating lease liabilities, noncurrent | 747,553 | 749,952 | ||
Defined benefit obligations | 4,104 | 4,103 | ||
Other employee related costs | 48,209 | 43,493 | ||
Deferred tax liabilities, net | 6,813 | 16,925 | ||
Deferred revenue, noncurrent | 919 | 1,147 | ||
Total liabilities | 1,685,584 | 1,612,602 | ||
Commitments and contingencies | ||||
Madison Square Garden Sports Corp. Stockholders' Equity: | ||||
Class A Common Stock, par value shares outstanding as of December 31, 2024 and June 30, 2024, respectively | 204 | 204 | ||
Class B Common Stock, par value outstanding as of December 31, 2024 and June 30, 2024 | 45 | 45 | ||
Preferred stock, par value 31, 2024 and June 30, 2024 | — | — | ||
Additional paid-in capital | 9,776 | 19,079 | ||
Treasury stock, at cost, 972 and 1,025 shares as of December 31, 2024 and June 30, 2024, respectively | (160,647) | (169,547) | ||
Accumulated deficit | (121,589) | (115,139) | ||
Accumulated other comprehensive loss | (925) | (952) | ||
Total equity | (273,136) | (266,310) | ||
Total liabilities and equity | $ 1,412,448 | $ 1,346,292 | ||
MADISON SQUARE GARDEN SPORTS CORP. SELECTED CASH FLOW INFORMATION (In thousands) (Unaudited) | ||||
Six Months Ended | ||||
December 31, | ||||
2024 | 2023 | |||
Net cash provided by (used in) operating activities | $ 35,621 | $ (20,257) | ||
Net cash used in investing activities | (2,302) | (5,238) | ||
Net cash (used in) provided by financing activities | (12,373) | 26,268 | ||
Net increase in cash, cash equivalents and restricted cash | 20,946 | 773 | ||
Cash, cash equivalents and restricted cash at beginning of period | 94,907 | 40,459 | ||
Cash, cash equivalents and restricted cash at end of period | $ 115,853 | $ 41,232 | ||
View original content to download multimedia:https://www.prnewswire.com/news-releases/madison-square-garden-sports-corp-reports-fiscal-2025-second-quarter-results-302366911.html
SOURCE Madison Square Garden Sports Corp.
FAQ
What was MSGS's revenue growth in Q2 fiscal 2025?
How much did MSGS's operating income decline in Q2 2025?
What drove the increase in MSGS's direct operating expenses?
How much did MSGS's ticket-related revenues increase in Q2 2025?
What was the impact of additional home games on MSGS's Q2 2025 results?
