Madison Square Garden Entertainment’s inaugural earnings since breaking off from its sporting side have the bad luck of also being the company's first since the COVID-19 pandemic shut its venues down. As a result of the ongoing health crisis, which kicked in roughly 18 days before the third quarter ended March 31, MSGE said on Monday that its revenues dipped 20% to $199.9 million, compared to $250 million in the prior-year quarter.
Operating losses for the three month period went from $18.6 million in the corresponding quarter in 2019 to $145.5 million this year, and the company said its adjusted operating income slid by $25.2 million to a $7.2 million loss. Operating expenses, however, decreased by $26 million to $132.8 million — reflective of venue closures resulting in lower overall expenses.
The company said the increase in operating loss includes the $102.2 million in non-cash impairment charges related to Tao Group Hospitality, its dining and nightlife unit that has had to temporarily shutter virtually all of its venues worldwide — in addition to one permanent closure.