Madison Square Garden Company Shows Gains in First Quarter Away from Broadcasting
MSG's sports teams and entertainment venues are now separate from the broadcasting company.
The Madison Square Garden Company had solid gains in its first quarter since spinning off from MSG Networks. In its first fiscal quarter earnings announced Thursday morning -- its first since a split from the MSG Networks -- MSG's revenues grew 26 percent to $150.4 million and operating loss improved 1 percent to $24.2 million. Revenue at the entertainment division rose 18 percent to $77.0 million and operating loss improved 92 percent to $400,000. MSG Sports revenue jumped 37 percent to $73.1 million. The company's share price was up 0.7 percent to $152.00 in early morning trading.
MSG spun off from MSG Networks in October with the belief that shareholders would benefit from value unlocked by separating its sports teams and venues from its sports and entertainment television and online broadcasting. President and CEO David O'Connor said in a statement: "This transaction highlights the value of our unique assets and brands and sets the stage for future growth by providing the company with the strategic flexibility to continue delivering exceptional live experiences for our fans and partners, while exploring new and innovative ways to build upon our celebrated legacy."
MSG Entertainment includes venues such as New York's Madison Square Garden and the Theater at Madison Square Garden, the Forum in Inglewood, CA, The Chicago Theatre and the Wang Theatre in Boston. MSG Sports owns and operates the sports franchises the New York Knicks NBA team, the New York Rangers NHL team, the New York Liberty WNBA team. It also presents sports events in professional boxing, college basketball, tennis, bull riding and gaming.