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Revenue, losses up in MSG Q1 financials

The Madison Square Garden Company has kicked off its 2017 financial year with a 44% rise in turnover from its entertainment division, although losses also grew slightly

By IQ on 04 Nov 2016

Radio City Music Hall, New York, Madison Square Garden Company (MSG), Dustin Gaffke

image © Dustin Gaffke

The Madison Square Garden Company (MSG), the New York-based owner of several US venues and sports teams, has started its new financial year with a bang, posting a 21% increase in year-on-year revenue in the three months ending 30 September 2016.

In the first quarter (Q1) of the ‘2017’ financial year, MSG’s reported turnover was US$181.7 million – up from $150.4m in Q1 2016 – although losses also grew to $32.8m, from $4.6m in the same period last year.

MSG Entertainment, the company’s event promotion/production subsidiary, grew revenue 44% to $110.7m, driven primarily by “higher overall event-related revenues at the company’s venues (led by the [Madison Square] Garden and the Forum [near Los Angeles]) and, to a lesser extent, revenues from the New York Spectacular Starring the Radio City Rockettes production”.

MSG Sports, however – which includes MSG’s interest in a number of basketball and ice hockey teams – saw its revenue decrease 3%, to $71m, and operating income fall from $10.7m to $9.3m.

“We remain confident that our efforts will position the company for attractive long-term growth and asset value creation for our shareholders”

MSG president and CEO David O’Connor told investors: “As we enter our second year as a standalone live sports and entertainment company [after being spun off from broadcaster MSG Networks], we remain focused on delivering the very best in premium live experiences for our customers and partners.

“In our first quarter, we saw continued evidence that this approach – along with the important steps we took last year to position the company for growth – is generating positive results.  Looking ahead, we remain confident that our efforts will position the company for attractive long-term growth and asset value creation for our shareholders.”

MSG revenues fell in 2016, with expenses incurred by Radio City Rockettes, and the “absence of a $3.6 million insurance recovery, recorded in the prior year quarter, related to lost revenues” from the show due to Hurricane Sandy, blamed.

The Madison Square Garden Company owns the eponymous 20,000-capacity New York entertainment and sports venue, as well as Radio City Music Hall (pictured) and the Beacon Theatre in New York, the Chicago Theatre, the LA Forum, the New York Knicks and New York Liberty basketball teams and the New York Rangers ice hockey team.

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