The Madison Square Garden Company has released its second quarter financial earnings for 2020 that reflects little change in the company's year-over-year earnings, despite significant investments in its new Sphere venues.
The company reported $628.8 million in revenue during the second fiscal quarter of 2020, a 1% decrease from the same period last year. The New York-based company also saw a 3% increase in operating income to $80.8 million for the fiscal quarter completed on Dec. 31. According to MSG, the relatively flat numbers are a combination of growth at MSG Sports and MSG Entertainment with, among other things, decreases in signage and sponsorships (Sports) and expiration of the booking agreement with the Wang Theatre in Boston (Entertainment).
While the company anticipates significant revenue from its MSG Sphere location in Las Vegas that's slated to open next year, actual construction costs for MSG Sphere at The Venetian incurred through Dec. 31, 2019, were approximately $248 million, including the $37.5 million received from the Las Vegas Sands Company in 2019. MSG says it has moved into the detailed construction drawings phase of the Vegas Sphere and now expects the building to ultimately cost $1.66 billion to complete. Another Sphere venue is being planned for London as well.