Madison Square Garden Takes Hit From Concert Slowdown, Stock Falls
The quarterly revenue declined by 17% year-on-year (Y/Y) to $154.14 million, beating the analyst consensus estimate of $152.24 million.
Earnings loss per share of 57 cents missed the analyst consensus loss estimate of 49 cents.Revenues from entertainment offerings decreased 17% Y/Y to $118.7 million, primarily due to lower event-related revenues and a decrease in revenues subject to the sharing of economics with Madison Square Garden Sports under the Arena License Agreements.
Food, beverage, and merchandise revenues declined 24% Y/Y to $26.4 million.
Event-related revenues decreased by $21.6 million due to lower concert revenues.
View more earnings on MSGE
In addition, the company reported an adjusted operating loss of $1.3 million, versus $13.1 million profit a year ago, primarily due to the decrease in revenues.
As of June 30, cash and equivalents stood at $43.5 million.
The company said it hosted nearly 6 million guests at more than 975 events, including concerts, special events, family shows, marquee sports, and the New York Knicks' regular season, playoff run, and the New York Rangers' regular season.
It sold about 1.1 million tickets for 200 shows of the Christmas Spectacular, generating another year of record-setting revenue. The company also repurchased approximately $40 million of its Class A common stock during the year.
Madison Square Garden Entertainment stock gained 13% year-to-date.
Price Action: MSGE stock is trading lower by 3.03% to $39.00 premarket at last check Wednesday.
Image via Shutterstock
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This article Madison Square Garden Takes Hit From Concert Slowdown, Stock Falls originally appeared on Benzinga.com
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