Latest news with #JamesL.Dolan
Al Etihad
2 days ago
- Business
- Al Etihad
Sphere Abu Dhabi moves forward as franchise agreement signed with DCT Abu Dhabi
17 Aug 2025 12:00 A. SREENIVASA REDDY (ABU DHABI)Sphere Abu Dhabi is a step closer to becoming a reality after Sphere Entertainment signed a franchise agreement with the Department of Culture and Tourism – Abu Dhabi (DCT).The deal, finalised in recent weeks, was disclosed in a regulatory filing with the United States Securities and Exchange Commission (SEC).The Abu Dhabi project had originally been announced in October 2024, but the latest filing confirms that Sphere Entertainment and DCT Abu Dhabi have now executed a Franchise Agreement, a Joint Development and Partnership Agreement, and a Pre-Opening Services Agreement, which together cover the construction, development and operation of the Abu Dhabi will be modelled on the lines of Sphere Las Vegas, which was opened in 2023. Sphere Las Vegas became one of the most talked-about entertainment venues, combining massive LED visuals, advanced sound technology, and large-scale immersive $2.3 billion venue includes floor-to-ceiling wraparound interior LED screens and 170,000 ultra-directional speakers. It is currently the largest spherical structure on is described in one of the filings as a 'next-generation entertainment medium powered by cutting-edge technologies to create multi-sensory experiences at an unparalleled scale'.Under the franchise terms, Sphere Entertainment has granted DCT Abu Dhabi the exclusive right to build and operate Sphere Abu Dhabi, as well as the exclusive right to develop further Sphere venues across the Middle East and North Africa for at least ten years following the opening. DCT has also been licensed Sphere's proprietary technology, patents, trademarks and content, subject to guidelines and return, DCT Abu Dhabi will pay a franchise initiation fee in instalments linked to project milestones, along with royalties once the venue opens. The SEC filing explains that these royalties will be based on percentages of both overall revenues, and ticket sales for exclusive agreement has an initial term of 25 years, with DCT holding options for two further ten-year extensions. Sphere Entertainment will also collect fees under the Pre-Opening Services Agreement for providing pre-construction and construction-related services, and an Operational Services Agreement is expected to be concluded prior to the opening to cover ongoing technical and operational disclosures show how the new venue fits into the group's the first half of 2025, Sphere Entertainment reported revenues of $563 million, of which the Sphere segment contributed $332 million, mainly from event-related ticketing, sponsorships, Exosphere advertising and food and beverage sales. The company also noted $115 million of production content in progress, highlighting the importance of original immersive programming that will also underpin Sphere Abu the project was first announced in 2024, James L. Dolan, Executive Chairman and Chief Executive Officer of Sphere Entertainment, said: 'The vision for Sphere has always included a global network of venues, and today's announcement is a significant milestone toward that goal. Sphere is redefining live entertainment and extending the reach of its transformative impact.' Mohamed Khalifa Al Mubarak, Chairman of DCT Abu Dhabi, added that Sphere Abu Dhabi would 'align with our Tourism Strategy 2030, further establishing Abu Dhabi as a vibrant hub for culture and innovation'. Source: Aletihad - Abu Dhabi
Business Wire
6 days ago
- Business
- Business Wire
Madison Square Garden Entertainment Corp. Reports Fiscal 2025 Fourth Quarter and Full Year Results
NEW YORK--(BUSINESS WIRE)--Madison Square Garden Entertainment Corp. (NYSE: MSGE) ('MSG Entertainment' or the 'Company') today reported financial results for the fiscal fourth quarter and full-year ended June 30, 2025. Fiscal 2025 was highlighted by another year of strong demand for the Company's array of live entertainment offerings. The Company hosted nearly 6 million guests at more than 975 events, including concerts, special events, family shows, and marquee sports, as well as the New York Knicks' ("Knicks") and New York Rangers' ("Rangers") regular seasons and the Knicks' playoff run. It also reflected approximately 1.1 million tickets sold across 200 shows of the Christmas Spectacular production, which delivered another year of record-setting revenues. In addition, the Company repurchased approximately $40 million of its Class A common stock during fiscal 2025. For fiscal 2025, the Company reported revenues of $942.7 million, a decrease of $16.5 million, or 2%, as compared to the prior year. In addition, the Company reported operating income of $122.1 million, an increase of $10.2 million, or 9%, and adjusted operating income of $222.5 million, an increase of $11.0 million, or 5%, both as compared to the prior year. (1) For the fiscal 2025 fourth quarter, the Company reported revenues of $154.1 million, a decrease of $31.9 million, or 17%, as compared to the prior year quarter. In addition, the Company reported an operating loss of $25.8 million, an increase of $16.9 million as compared to the prior year quarter, and an adjusted operating loss of $1.3 million as compared to adjusted operating income of $13.1 million in the prior year quarter. (1) Executive Chairman and CEO James L. Dolan said, 'During fiscal 2025, we saw strong demand for our portfolio of entertainment assets. We see this momentum continuing in fiscal 2026, and believe we are well positioned to drive solid revenue and adjusted operating income growth in the year ahead.' Results for the Three and Twelve Months Ended June 30, 2025 and 2024: Note: Amounts may not foot due to rounding. NM — Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful. (1) See page 4 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures. Expand Entertainment Offerings, Arena License Fees and Other Leasing Fiscal 2025 fourth quarter revenues from entertainment offerings of $118.7 million decreased $24.1 million, or 17%, as compared to the prior year quarter, primarily due to lower event-related revenues and a decrease in revenues subject to the sharing of economics with Madison Square Garden Sports Corp. ("MSG Sports") pursuant to the Arena License Agreements. Event-related revenues decreased $21.6 million, primarily due to lower revenues from concerts, partially offset by higher revenues from other live entertainment and sporting events held at the Company's venues. The decrease in revenues from concerts primarily reflects a decrease in the number of concerts at the Madison Square Garden Arena ("The Garden") and lower per-concert revenues, primarily due to a shift in the mix of events at The Garden from promoted events to rentals, partially offset by an increase in the number of concerts at the Company's theaters, all as compared to the prior year quarter. The increase in revenues from other live entertainment and sporting events primarily reflects higher per-event revenues. Revenues subject to the sharing of economics with MSG Sports pursuant to the Arena License Agreements decreased $2.4 million, primarily due to lower suite license fee revenues (excluding those retained by MSG Entertainment) as compared to the prior year quarter, which mainly reflects the impact of fewer Knicks and Rangers games played at The Garden. Fiscal 2025 fourth quarter arena license fees and other leasing revenues of $9.0 million increased $0.5 million, or 6%, as compared to the prior year quarter, primarily due to an increase in other leasing revenues, partially offset by lower arena license fees due to a combined one fewer Knicks and Rangers regular season game played at The Garden as compared to the prior year quarter. Fiscal 2025 fourth quarter direct operating expenses associated with entertainment offerings, arena license fees and other leasing of $85.5 million decreased $14.2 million, or 14%, as compared to the prior year quarter, primarily due to lower event-related expenses and, to a lesser extent, lower expenses related to the sharing of economics with MSG Sports pursuant to the Arena License Agreements, partially offset by an increase in expenses related to the presentation of the Christmas Spectacular production and other cost increases. Event-related expenses decreased $15.7 million, mainly due to lower per-concert expenses, primarily due to a shift in the mix of events at The Garden from promoted events to rentals, and a decrease in the number of concerts at The Garden, partially offset by an increase in the number of concerts at the Company's theaters, all as compared to the prior year. This was partially offset by higher expenses for other live entertainment and sporting events as compared to the prior year quarter. Expenses associated with the sharing of economics with MSG Sports pursuant to the Arena License Agreements decreased $1.8 million, reflecting a proportional decrease in contractual revenue sharing as a result of the decrease in suite license fee revenues. Food, Beverage and Merchandise Fiscal 2025 fourth quarter food, beverage and merchandise revenues of $26.4 million decreased $8.3 million, or 24%, as compared to the prior year quarter. This decrease was primarily due to (i) lower food and beverage sales at Knicks and Rangers games, primarily due to fewer games played at The Garden as compared to the prior year quarter, partially offset by higher per-event revenues, and (ii) lower food and beverage sales at concerts, primarily due to a decrease in the number of concerts at The Garden, partially offset by an increase in the number of concerts at the Company's theaters, both as compared to the prior year quarter. Fiscal 2025 fourth quarter food, beverage and merchandise direct operating expenses of $16.5 million decreased $6.2 million, or 27%, as compared to the prior year quarter, primarily due to lower food and beverage costs at concerts at the Company's venues and lower food and beverage costs at Knicks and Rangers games at The Garden. Selling, General and Administrative Expenses Fiscal 2025 fourth quarter selling, general and administrative expenses of $59.9 million increased $4.1 million, or 7%, as compared with the prior year quarter. This increase was primarily due to higher employee compensation and related benefits, partially offset by lower rent expense and other net cost decreases. Operating Loss and Adjusted Operating (Loss) Income Fiscal 2025 fourth quarter operating loss of $25.8 million increased $16.9 million and adjusted operating income decreased $14.4 million to an adjusted operating loss of $1.3 million, both as compared to the prior year quarter, primarily due to the decrease in revenues and, to a lesser extent, higher selling, general and administrative expenses, partially offset by lower direct operating expenses. About Madison Square Garden Entertainment Corp. Madison Square Garden Entertainment Corp. (MSG Entertainment) is a leader in live entertainment, delivering unforgettable experiences while forging deep connections with diverse and passionate audiences. The Company's portfolio includes a collection of world-renowned venues – New York's Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, and Beacon Theatre; and The Chicago Theatre – that showcase a broad array of sporting events, concerts, family shows, and special events for millions of guests annually. In addition, the Company features the original production, the Christmas Spectacular Starring the Radio City Rockettes, which has been a holiday tradition for more than 90 years. More information is available at 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 long-lived assets, including right of use assets and related lease costs, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, (iv) merger, spin-off, and acquisition-related costs, including merger-related litigation expenses, (v) gains or losses on sales or dispositions of businesses and associated settlements, (vi) the impact of purchase accounting adjustments related to business acquisitions, (vii) amortization for capitalized cloud computing arrangement costs and (viii) gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan. We exclude impairments of long-lived assets, including right-of-use assets and related lease costs, as these expenses do not represent core business operating results of the Company. 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. We eliminate merger, spin-off, and acquisition-related transaction costs, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan, provides investors with a clearer picture of the Company's operating performance given that, in accordance with U.S. generally accepted accounting principles, gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan are recognized in Operating (income) loss whereas gains and losses related to the remeasurement of the assets under the executive deferred compensation plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Other income (expense), net, which is not reflected in Operating income (loss). We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of the Company on a consolidated basis. 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 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 or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industries 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. Conference Call Information: ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) (in thousands) (Unaudited) The following is a description of the adjustments to operating (loss) income in arriving at adjusted operating (loss) income as described in this earnings release: Depreciation and amortization. This adjustment eliminates depreciation and amortization of property and equipment and intangible assets. Impairment of long-lived assets. This adjustment eliminates the impairment of long-lived assets, including right of use assets and related lease costs. Share-based compensation. This adjustment eliminates the compensation expense relating to restricted stock units, performance stock units and stock options granted to employees and non-employee directors. Restructuring charges. This adjustment eliminates costs related to termination benefits provided to certain corporate executives and employees. Merger, spin-off, and acquisition-related costs. This adjustment eliminates costs related to mergers, spin-offs and acquisitions, including merger-related litigation expenses. Amortization for capitalized cloud computing arrangement costs. This adjustment eliminates amortization of capitalized cloud computing arrangement costs. Remeasurement of deferred compensation plan liabilities. This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan. CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands) June 30, 2025 2024 ASSETS Current Assets: Cash, cash equivalents and restricted cash $ 43,538 $ 33,555 Accounts receivable, net 66,781 77,259 Related party receivables, current 22,487 17,469 Prepaid expenses and other current assets 104,326 90,801 Total current assets 237,132 219,084 Non-Current Assets: Property and equipment, net 621,075 633,533 Right-of-use lease assets 484,544 388,658 Goodwill 69,041 69,041 Indefinite-lived intangible assets 63,801 63,801 Deferred tax assets, net 54,072 68,307 Other non-current assets 140,177 110,283 Total assets $ 1,669,842 $ 1,552,707 LIABILITIES AND DEFICIT Current Liabilities: Accounts payable, accrued and other current liabilities $ 184,360 $ 203,750 Related party payables, current 23,830 42,506 Long-term debt, current 30,469 16,250 Operating lease liabilities, current 35,100 27,736 Deferred revenue 228,642 215,581 Total current liabilities 502,401 505,823 Non-Current Liabilities: Long-term debt, net of deferred financing costs 568,780 599,248 Operating lease liabilities, non-current 566,484 427,014 Other non-current liabilities 45,477 43,787 Total liabilities 1,683,142 1,575,872 Commitments and contingencies Deficit: Class A Common Stock (a) 461 456 Class B Common Stock (b) 69 69 Additional paid-in capital 44,843 33,481 Treasury stock at cost (5,483 and 4,365 shares as of June 30, 2025 and June 30, 2024, respectively) (180,204 ) (140,512 ) Retained earnings 153,034 115,603 Accumulated other comprehensive loss (31,503 ) (32,262 ) Total deficit (13,300 ) (23,165 ) Total liabilities and deficit $ 1,669,842 $ 1,552,707 Expand ______________________ (a) Class A Common Stock, $0.01 par value per share, 120,000 shares authorized; 46,076 and 45,556 shares issued as of June 30, 2025 and June 30, 2024, respectively. (b) Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares issued as of June 30, 2025 and June 30, 2024. Expand SELECTED CASH FLOW INFORMATION (in thousands) (Unaudited) Twelve Months Ended June 30, 2025 2024 Net cash provided by operating activities $ 115,297 $ 111,266 Net cash used in investing activities (23,693 ) (62,371 ) Net cash used in financing activities (81,621 ) (99,695 ) Net increase (decrease) in cash, cash equivalents and restricted cash 9,983 (50,800 ) Cash, cash equivalents and restricted cash, beginning of period 33,555 84,355 Cash, cash equivalents and restricted cash, end of period $ 43,538 $ 33,555 Expand
Business Wire
12-08-2025
- Business
- Business Wire
Madison Square Garden Sports Corp. Reports
NEW YORK--(BUSINESS WIRE)--Madison Square Garden Sports Corp. (NYSE: MSGS) today reported financial results for the fiscal fourth quarter and full-year ended June 30, 2025. The fiscal 2025 fourth quarter was highlighted by the New York Knicks' (the 'Knicks') participation in the NBA playoffs, which included nine home playoff games at the Madison Square Garden Arena ('The Garden') and culminated with the team's appearance in the Eastern Conference Finals. This compared to fifteen combined home playoff games for the Knicks and the New York Rangers (the 'Rangers') in the prior year quarter. In addition, fiscal 2025 fourth quarter and full-year results reflect increases in average regular season per-game revenues, including tickets, sponsorship and suites; the impact of reductions in local media rights fees as a result of amendments to the Knicks' and Rangers' local media rights agreements with MSG Networks Inc. ("MSG Networks"); the impact of the Knicks' and Rangers' rosters for the 2024-25 seasons; and the impact of certain team personnel transactions. For fiscal 2025, the Company reported revenues of $1,039.2 million, an increase of $12.1 million, or 1%, as compared to the prior year. In addition, the Company reported operating income of $14.8 million, a decrease of $131.2 million, and adjusted operating income of $38.2 million, a decrease of $134.1 million, both as compared to the prior year. (1) For the fiscal 2025 fourth quarter, the Company generated revenues of $204.0 million, a decrease of $23.3 million, or 10%, as compared to the prior year quarter. In addition, the Company reported an operating loss of $22.6 million and an adjusted operating loss of $16.8 million, as compared to operating income of $52.3 million and adjusted operating income of $56.5 million in the prior year quarter. (1) Madison Square Garden Sports Corp. Executive Chairman and CEO James L. Dolan said, 'Fiscal 2025 was highlighted by growth in per-game revenues and the Knicks' postseason run to the Eastern Conference Finals, while it also reflected our investment in our teams and the changing local media landscape. Looking ahead, we expect continued strong demand for the Knicks and Rangers and remain confident in the value of owning two professional sports franchises.' Financial Results for the Three and Twelve Months Ended June 30, 2025 and 2024: Note: Does not foot due to rounding 1. See page 4 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures. Expand Summary of Financial Results For the fiscal 2025 fourth quarter, revenues of $204.0 million decreased $23.3 million, or 10%, as compared to the prior year quarter. The decrease was primarily due to lower playoff-related revenues, lower revenues from leagues distributions and, to a lesser extent, lower food, beverage and merchandise sales and local media rights fees. During the fiscal 2025 fourth quarter, the Rangers and the Knicks played a combined one fewer regular season game and six fewer playoff games at The Garden, both as compared to the prior year quarter. Playoff-related revenues decreased $12.9 million as compared to the prior year quarter, primarily due to the Rangers playing eight home playoff games in the prior year quarter as compared to not qualifying for the playoffs in the current year quarter. This decrease was partially offset by higher per-game Knicks playoff revenue and two additional Knicks home playoff games as compared to the prior year quarter. Revenues from league distributions decreased $6.8 million as compared to the prior year quarter, primarily due to the absence of a non-recurring territorial fee from the NHL of approximately $7 million recognized in the prior year quarter, partially offset by higher national media rights fees. Food, beverage and merchandise sales decreased $1.8 million as compared to the prior year quarter, primarily due to lower average per-game revenue, lower online sales of merchandise and the Knicks and Rangers playing a combined one fewer regular season game at The Garden during the fiscal 2025 fourth quarter. Merchandise sales in the fiscal 2024 fourth quarter included the positive impact of new Rangers' jersey launches. Local media rights fees decreased $1.1 million as compared to the prior year period, primarily due to a reduction in local media rights fees for the 2024-25 season as a result of amendments to the Knicks' and Rangers' local media rights agreements with MSG Networks. This decrease was partially offset by net lower reductions in rights fees as compared to the prior year quarter related to the number of telecasts exclusively available to MSG Networks. Direct operating expenses of $154.8 million increased $47.1 million, or 44%, as compared to the prior year quarter. This increase was primarily driven by higher net provisions for certain team personnel transactions of $42.8 million, higher net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax of $9.8 million and higher team personnel compensation of $2.9 million, all as compared to the prior year period. These increases were partially offset by lower playoff-related expenses of $5.5 million, as well as other cost decreases. Selling, general and administrative expenses of $70.9 million increased $4.5 million, or 7%, as compared to the prior year quarter. This increase was primarily driven by higher professional fees of $3.7 million, higher playoff-related expenses of $1.5 million, as well as higher other general and administrative expenses, partially offset by lower sales and marketing costs of $1.3 million and lower employee compensation and related benefits of $1.2 million. Operating income decreased by $74.9 million to an operating loss of $22.6 million and adjusted operating income decreased by $73.3 million to an adjusted operating loss of $16.8 million, both as compared to the prior year quarter, primarily due to the increase in direct operating expenses and, to a lesser extent, the decrease in revenues. Other Matters On June 27, 2025, the Knicks and Rangers amended their respective media rights agreements with MSG Networks, which included: (i) 28% and 18% reductions in annual rights fees payable to the Knicks and Rangers, respectively, effective January 1, 2025; (ii) an elimination of annual rights fee escalators; and (iii) a change to the contract expiration dates to the end of the 2028-29 seasons, subject to a right of first refusal in favor of MSG Networks. Concurrent with the amendments to the media rights agreements, MSG Networks issued penny warrants to the Company exercisable for 19.9% of the equity interests in MSG Networks. 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 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 U.S. generally accepted accounting principles ('GAAP'), gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan are recognized in Operating (income) loss whereas gains and losses related to the remeasurement of the assets under the Company's Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Miscellaneous income (expense), net, which is not reflected in Operating income (loss). 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. MADISON SQUARE GARDEN SPORTS CORP. ADJUSTMENTS TO RECONCILE OPERATING (LOSS) INCOME TO ADJUSTED OPERATING (LOSS) INCOME (In thousands) (Unaudited) The following is a description of the adjustments to operating (loss) income in arriving at adjusted operating (loss) 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. MADISON SQUARE GARDEN SPORTS CORP. (In thousands, except per share data) (Unaudited) June 30, 2025 June 30, 2024 ASSETS Current Assets: Cash and cash equivalents $ 144,617 $ 89,136 Restricted cash 8,571 5,771 Accounts receivable, net 25,855 33,781 Net related party receivables 3,582 32,255 Prepaid expenses 43,417 30,956 Other current assets 25,053 25,043 Total current assets 251,095 216,942 Property and equipment, net 28,962 28,541 Right-of-use lease assets 760,456 694,566 Indefinite-lived intangible assets 103,644 103,644 Goodwill 226,523 226,523 Investments 54,720 62,543 Deferred tax assets, net 34,821 — Other assets 12,753 13,533 Total assets $ 1,472,974 $ 1,346,292 Expand MADISON SQUARE GARDEN SPORTS CORP. (In thousands, except per share data) (Unaudited) June 30, 2025 June 30, 2024 LIABILITIES AND EQUITY Current Liabilities: Accounts payable $ 9,336 $ 9,900 Net related party payables 4,807 6,718 Debt 24,000 30,000 Accrued liabilities: Employee-related costs 98,924 133,930 League-related accruals 196,567 120,876 Other accrued liabilities 13,093 21,613 Operating lease liabilities, current 52,618 50,267 Deferred revenue 164,178 148,678 Total current liabilities 563,523 521,982 Long-term debt 267,000 275,000 Operating lease liabilities, noncurrent 841,050 749,952 Defined benefit obligations 4,086 4,103 Other employee-related costs 78,092 43,493 Deferred tax liabilities, net — 16,925 Deferred revenue, noncurrent 662 1,147 Total liabilities 1,754,413 1,612,602 Commitments and contingencies Class A Common stock, par value $0.01, 120,000 shares authorized; 19,488 and 19,423 shares outstanding as of June 30, 2025 and 2024, respectively 204 204 Class B Common stock, par value $0.01, 30,000 shares authorized; 4,530 shares outstanding as of June 30, 2025 and 2024 45 45 Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of June 30, 2025 and 2024 — — Additional paid-in capital 15,348 19,079 Treasury stock, at cost, 960 and 1,025 shares as of June 30, 2025 and 2024, respectively (158,543 ) (169,547 ) Accumulated deficit (137,596 ) (115,139 ) Accumulated other comprehensive loss (897 ) (952 ) Total equity (281,439 ) (266,310 ) Total liabilities and equity $ 1,472,974 $ 1,346,292 Expand MADISON SQUARE GARDEN SPORTS CORP. SELECTED CASH FLOW INFORMATION (In thousands) (Unaudited) Twelve Months Ended June 30, 2025 2024 Net cash provided by operating activities $ 91,607 $ 92,131 Net cash used in investing activities (6,920 ) (8,898 ) Net cash used in financing activities (26,406 ) (28,785 ) Net increase in cash, cash equivalents and restricted cash 58,281 54,448 Cash, cash equivalents and restricted cash at beginning of period 94,907 40,459 Cash, cash equivalents and restricted cash at end of period $ 153,188 $ 94,907 Expand
Business Wire
11-08-2025
- Business
- Business Wire
Sphere Entertainment Co. Reports Second Quarter 2025 Results
NEW YORK--(BUSINESS WIRE)--Sphere Entertainment Co. (NYSE: SPHR) ('Sphere Entertainment' or the 'Company') today reported financial results for the second quarter ended June 30, 2025. Second quarter highlights for the Company's Sphere segment included: In early June, The Sphere Experience featuring Postcard from Earth surpassed four million total tickets sold since opening in October 2023; Kenny Chesney – the venue's first country act – completed a fifteen-show run during May and June, which followed the continuation of residencies from the Eagles and Dead & Company earlier in the quarter; and Sphere hosted multiple corporate events, including Hewlett Packard Enterprise for the second consecutive year. For the three months ended June 30, 2025, the Company reported revenues of $282.7 million, an increase of $9.3 million, or 3%, as compared to the prior year quarter. In addition, the Company reported an operating loss of $50.2 million, an improvement of $21.2 million, and adjusted operating income of $61.5 million, an increase of $35.8 million, both as compared to the prior year quarter. (1) Executive Chairman and CEO James L. Dolan said, 'We continue to execute our strategic priorities to drive long-term profitable growth for our Sphere business. At the same time, we have been making progress with our expansion plans and remain confident in the global opportunity ahead.' Segment Results for the Three and Six Months Ended June 30, 2025 and 2024: Sphere For the three months ended June 30, 2025, the Sphere segment generated revenues of $175.6 million, an increase of $24.4 million, or 16%, as compared to the prior year quarter. Event-related revenues increased $26.7 million as compared to the prior year quarter, primarily due to an increase in the number of corporate events as well as nine additional concert residency shows held at Sphere in Las Vegas as compared to the prior year quarter. This increase was partially offset by the absence of one marquee sporting event held in the prior year quarter. Other revenues increased $4.8 million as compared to the prior year quarter, primarily due to the impact of revenues related to bringing the world's second Sphere to Abu Dhabi, United Arab Emirates. Revenues related to The Sphere Experience decreased $6.7 million as compared to the prior year quarter, primarily due to lower average per-show revenues, partially offset by an increase in the number of overall performances as compared to the prior year quarter. In the current year quarter, The Sphere Experience included 215 performances of Postcard from Earth and V-U2 An Immersive Concert Film as compared to 208 performances of Postcard from Earth in the prior year quarter. Revenues from sponsorship, signage, Exosphere advertising and suite license fees decreased $0.5 million as compared to the prior year quarter, primarily due to lower Exosphere advertising revenues, partially offset by an increase in sponsorship revenues and suite license fee revenues. For the three months ended June 30, 2025, the Sphere segment had direct operating expenses of $76.4 million, an increase of $8.5 million, or 12%, as compared to the prior year quarter. Event-related expenses increased $6.4 million, primarily due to an increase in the number of concert residency shows and corporate events as compared to the prior year quarter, partially offset by lower average per-show expenses for concerts. Expenses related to Holoplot increased $1.4 million, reflecting the impact of consolidating the business' results following its acquisition by the Company in April 2024. Expenses associated with The Sphere Experience increased $0.6 million as compared to the prior year quarter, primarily due to an increase in the number of overall performances. For the three months ended June 30, 2025, selling, general and administrative expenses of $96.4 million decreased $5.7 million, or 6%, as compared to the prior year quarter, primarily due to lower employee compensation and related benefits of $8.7 million and lower professional fees of $1.9 million, partially offset by other cost increases. For the three months ended June 30, 2025, operating loss of $83.4 million improved by $21.1 million, or 20%, and adjusted operating income of $24.9 million increased $30.4 million, both as compared to the prior year quarter, primarily reflecting the increase in revenues and lower selling, general and administrative expenses, partially offset by higher direct operating expenses. MSG Networks For the three months ended June 30, 2025, the MSG Networks segment generated total revenues of $107.1 million, a decrease of $15.1 million, or 12%, as compared to the prior year quarter. Distribution revenue decreased $11.4 million, primarily due to a decrease in total subscribers of approximately 13.0%, partially offset by the impact of higher affiliation rates. Advertising revenue decreased $3.6 million as compared to the prior year quarter, primarily due to a lower number of live regular season and postseason professional sports telecasts. For the three months ended June 30, 2025, direct operating expenses of $55.0 million decreased $26.7 million, or 33%, as compared to the prior year quarter, primarily due to lower rights fees expense of $25.6 million and lower other programming and production costs of $1.1 million. On June 27, 2025, MSG Networks completed the restructuring of its credit facilities, described below, which included amendments to its media rights agreements for certain professional sports teams. The decrease in rights fees expense primarily reflects reductions in media rights fees as a result of such amendments, including retroactive adjustments for the 2024-25 NBA and NHL seasons recorded during the current year quarter. For the three months ended June 30, 2025, selling, general and administrative expenses of $16.6 million increased $11.7 million as compared to the prior year quarter. The increase was primarily due to higher advertising and marketing costs of $6.0 million and higher professional fees of $5.5 million, mainly due to the absence of litigation-related insurance recoveries recognized in the prior year quarter. For the three months ended June 30, 2025, operating income increased by $0.1 million to $33.3 million as compared to the prior year quarter, primarily due to lower direct operating expenses, mostly offset by the decrease in revenues and higher selling, general and administrative expenses. Adjusted operating income increased by $5.4 million to $36.5 million as compared to the prior year quarter, primarily due to lower direct operating expenses, partially offset by the decrease in revenues and higher selling, general and administrative expenses. Other Matters On June 27, 2025, MSG Networks completed a restructuring of its credit facilities. The restructuring included, among other things: (i) MSG Networks' $804 million term loan being replaced with a new $210 million term loan facility; and (ii) MSG Networks making a cash payment of $80 million to the lenders upon closing, comprised of $65 million from MSG Networks and a $15 million capital contribution from the Company. The new term loan continues to be non-recourse to Sphere Entertainment Co. For the three months ended June 30, 2025, the Company recorded a gain on extinguishment of debt of $346.1 million, reflecting the net impact of the restructuring. In connection with the restructuring, MSG Networks entered into amendments to the local media rights agreements with the New York Knicks ('Knicks') and the New York Rangers ('Rangers'), which included: (i) 28% and 18% reductions in annual rights fees payable to the Knicks and the Rangers, respectively, effective January 1, 2025; (ii) an elimination of annual rights fee escalators; and (iii) a change to the contract expiration dates to the end of the 2028-29 seasons, subject to a right of first refusal in favor of MSG Networks. Concurrent with the amendments to the Knicks' and Rangers' local media rights agreements, MSG Networks also issued penny warrants to Madison Square Garden Sports Corp. exercisable for 19.9% of the equity interests in MSG Networks. MSG Networks also entered into amendments with certain other professional sports teams that provide for, among other matters, reductions in the annual rights fees payable to such teams. The terms and conditions of the restructuring and other related transactions are described more fully in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 27, 2025. About Sphere Entertainment Co. Sphere Entertainment Co. is a premier live entertainment and media company. The Company includes Sphere, a next-generation entertainment medium powered by cutting-edge technologies to redefine the future of entertainment. The first Sphere venue opened in Las Vegas in September 2023. In addition, the Company includes MSG Networks, which operates two regional sports and entertainment networks, MSG Network and MSG Sportsnet, as well as a direct-to-consumer and authenticated streaming product, MSG+, delivering a wide range of live sports content and other programming. More information is available at Non-GAAP Financial Measures We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) before (i) depreciation, amortization and impairments of property and equipment, goodwill and intangible assets, (ii) amortization for capitalized cloud computing arrangement costs, (iii) share-based compensation expense, (iv) restructuring charges or credits, (v) merger, debt work-out and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries, (vi) gains or losses on sales or dispositions of businesses and associated settlements, (vii) the impact of purchase accounting adjustments related to business acquisitions, and (viii) gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan. 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. We eliminate merger, debt work-out and acquisition-related costs, including merger related litigation expenses, net of insurance recoveries, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes 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 U.S. generally accepted accounting principles ('GAAP'), gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan are recognized in Operating income (loss) whereas gains and losses related to the remeasurement of the assets under the Company's Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Other income (expense), net, which is not reflected in Operating income (loss). We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our business segments and the Company on a consolidated basis. 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 6 of this 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 or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industries 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. Conference Call Information: The conference call will be Webcast live today at 10:00 a.m. ET at Conference call dial-in number is 888-800-3155 / Conference ID Number 8089430 Conference call replay number is 800-770-2030 / Conference ID Number 8089430 until August 18, 2025 ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) (In thousands) (Unaudited) The following is a description of the adjustments to operating loss in arriving at adjusted operating income as described in this earnings release: Share-based compensation. This adjustment eliminates the compensation expense relating to restricted stock units, performance stock units and stock options granted under the Sphere Entertainment Employee Stock Plan, MSG Sports Employee Stock Plan, MSG Networks Employee Stock Plan, as amended and assumed by Sphere Entertainment, and Sphere Entertainment Non-Employee Director Plan. Depreciation and amortization. This adjustment eliminates depreciation and amortization of property and equipment and intangible assets. Restructuring charges. This adjustment eliminates costs related to termination benefits provided to employees as part of the Company's full-time workforce reductions. Impairment and other losses (gains), net. This adjustment eliminates non-cash impairment charges and the impact of gains or losses from the disposition of assets or businesses. Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries. This adjustment eliminates costs related to mergers, debt work-outs and acquisitions, including litigation expenses. Amortization for capitalized cloud computing arrangement costs. This adjustment eliminates amortization of capitalized cloud computing arrangement costs. 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. SEGMENT RESULTS (In thousands) (Unaudited) BUSINESS SEGMENT RESULTS Three Months Ended June 30, 2025 Sphere MSG Networks Total Revenues $ 175,587 $ 107,090 $ 282,677 Direct operating expenses (76,351 ) (54,967 ) (131,318 ) Selling, general and administrative expenses (96,389 ) (16,634 ) (113,023 ) Depreciation and amortization (81,707 ) (2,200 ) (83,907 ) Impairments and other losses, net (3,641 ) — (3,641 ) Restructuring charges (947 ) — (947 ) Operating (loss) income $ (83,448 ) $ 33,289 $ (50,159 ) Reconciliation to adjusted operating income: Share-based compensation 17,953 897 18,850 Depreciation and amortization 81,707 2,200 83,907 Restructuring charges 947 — 947 Impairments and other losses, net 3,641 — 3,641 Merger, debt work-out, and acquisition related costs, net of insurance recoveries 2,351 131 2,482 Amortization for capitalized cloud computing arrangement costs 1,579 — 1,579 Remeasurement of deferred compensation plan liabilities 219 — 219 Adjusted operating income $ 24,949 $ 36,517 $ 61,466 Three Months Ended June 30, 2024 Sphere MSG Networks Total Revenues $ 151,217 $ 122,178 $ 273,395 Direct operating expenses (67,870 ) (81,649 ) (149,519 ) Selling, general and administrative expenses (102,109 ) (4,931 ) (107,040 ) Depreciation and amortization (80,121 ) (2,216 ) (82,337 ) Impairments and other losses, net (5,735 ) — (5,735 ) Restructuring charges 88 (229 ) (141 ) Operating (loss) income $ (104,530 ) $ 33,153 $ (71,377 ) Reconciliation to adjusted operating (loss) income: Share-based compensation 12,337 984 13,321 Depreciation and amortization 80,121 2,216 82,337 Restructuring charges (88 ) 229 141 Impairments and other losses, net 5,735 — 5,735 Merger, debt work-out, and acquisition related costs, net of insurance recoveries 910 (5,473 ) (4,563 ) Amortization for capitalized cloud computing arrangement costs — 21 21 Remeasurement of deferred compensation plan liabilities 42 — 42 Adjusted operating (loss) income $ (5,473 ) $ 31,130 $ 25,657 Expand SEGMENT RESULTS (Continued) (In thousands) (Unaudited) Six Months Ended June 30, 2025 Sphere MSG Networks Total Revenues $ 333,132 $ 230,119 $ 563,251 Direct operating expenses (146,887 ) (142,754 ) (289,641 ) Selling, general and administrative expenses (192,793 ) (34,499 ) (227,292 ) Depreciation and amortization (163,712 ) (4,424 ) (168,136 ) Impairments and other losses, net (4,162 ) — (4,162 ) Restructuring charges (2,788 ) — (2,788 ) Operating (loss) income $ (177,210 ) $ 48,442 $ (128,768 ) Reconciliation to adjusted operating income: Share-based compensation 37,907 2,538 40,445 Depreciation and amortization 163,712 4,424 168,136 Restructuring charges 2,788 — 2,788 Impairments and other losses, net 4,162 — 4,162 Merger, debt work-out, and acquisition related costs, net of insurance recoveries 3,339 3,934 7,273 3,158 — 3,158 240 — 240 Adjusted operating income $ 38,096 $ 59,338 $ 97,434 Six Months Ended June 30, 2024 Sphere MSG Networks Total Revenues $ 321,581 $ 273,144 $ 594,725 Direct operating expenses (130,164 ) (173,395 ) (303,559 ) Selling, general and administrative expenses (211,085 ) (19,104 ) (230,189 ) Depreciation and amortization (157,827 ) (4,377 ) (162,204 ) Impairments and other losses, net (5,735 ) — (5,735 ) Restructuring charges (4,798 ) (10 ) (4,808 ) Operating (loss) income $ (188,028 ) $ 76,258 $ (111,770 ) Reconciliation to adjusted operating income: Share-based compensation 25,610 4,435 30,045 Depreciation and amortization 157,827 4,377 162,204 Restructuring charges 4,798 10 4,808 Impairments and other losses, net 5,735 — 5,735 Merger, debt work-out, and acquisition related costs, net of insurance recoveries 1,326 (5,381 ) (4,055 ) Amortization for capitalized cloud computing costs — 43 43 Remeasurement of deferred compensation plan liabilities 168 — 168 Adjusted operating income $ 7,436 $ 79,742 $ 87,178 Expand CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited) As of June 30, December 31, 2025 2024 ASSETS Current Assets: Cash, cash equivalents, and restricted cash $ 368,927 $ 515,633 Accounts receivable, net 151,224 154,624 Related party receivables, current 10,957 25,729 Prepaid expenses and other current assets 64,317 65,007 Total current assets 595,425 760,993 Non-Current Assets: Investments 41,311 40,396 Property and equipment, net 2,851,978 3,035,730 Right-of-use lease assets 88,765 93,920 Goodwill 410,172 410,172 Intangible assets, net 25,129 28,383 Other non-current assets 186,281 145,706 Total assets $ 4,199,061 $ 4,515,300 LIABILITIES AND EQUITY Current Liabilities: Accounts payable $ 14,775 $ 33,606 Accrued expenses and other current liabilities 346,925 388,370 Related party payables, current 5,758 9,504 Current portion of long-term debt, net 58,799 829,125 Operating lease liabilities, current 17,455 19,268 Deferred revenue 83,227 91,794 Total current liabilities 526,939 1,371,667 Non-Current Liabilities: Long-term debt, net 830,535 524,010 Operating lease liabilities, non-current 111,823 116,668 Deferred tax liabilities, net 250,579 148,870 Other non-current liabilities 165,498 152,666 Total liabilities 1,885,374 2,313,881 Commitments and contingencies Equity: Class A Common Stock (1) 291 290 Class B Common Stock (2) 69 69 Additional paid-in capital 2,463,345 2,428,414 Accumulated deficit (149,984 ) (219,846 ) Accumulated other comprehensive loss (34 ) (7,508 ) Total stockholders' equity 2,313,687 2,201,419 Total liabilities and equity $ 4,199,061 $ 4,515,300 _________________ (1) Class A Common Stock, $0.01 par value per share, 120,000 shares authorized; 29,133 and 28,960 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively. (2) Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares issued and outstanding as of June 30, 2025 and December 31, 2024. Expand SELECTED CASH FLOW INFORMATION (In thousands) (Unaudited) Six Months Ended June 30, 2025 2024 Net cash (used in) provided by operating activities $ (52,711 ) $ 28,570 Net cash provided by (used in) investing activities 16,441 (46,156 ) Net cash used in financing activities (111,059 ) (36,242 ) Effect of exchange rates on cash, cash equivalents, and restricted cash 623 (776 ) Net decrease in cash, cash equivalents, and restricted cash $ (146,706 ) $ (54,604 ) Cash, cash equivalents, and restricted cash at beginning of period 515,633 627,827 Cash, cash equivalents, and restricted cash at end of period $ 368,927 $ 573,223 Expand
