Revenue and profits up for Madison Square Garden in 2018
Posting their financial results yesterday, the Madison Square Garden Company (MSG) has reported strong growth in revenue and operating income in fiscal year 2018.
Over the course of the fiscal year, the group generated approximately $1.6 billion in revenue, representing an increase of some 18 per cent compared to 2017’s efforts. On top of this, the Company generated operating income of $18.9 million, an increase of $79.2 million and an adjusted operating income (AOI) of $193.8, up $96.2 million on last year’s results.
Speaking on the good fortune of the year, MSG executive chairman and CEO Jim Dolan says: “We had a solid fiscal 2018, driven by the performance of our bookings business, the Christmas Spectacular, and sponsorships.
“This past year we also took important steps to position the Company for continued growth as we unveiled our plans to build state-of-the-art venues – called MSG Sphere – in Las Vegas and London, and announced the exploration of a potential separation of our entertainment and sports businesses.
“We believe that our commitment to delivering premium live experiences for our customers and partners will continue to create long-term value for our shareholders”
“Looking ahead, we believe that our commitment to delivering premium live experiences for our customers and partners will continue to create long-term value for our shareholders.”
Somewhat deflated results were posted for the fourth quarter of 2018. Revenue increased just four per cent on the same quarter in 2017, at $318 million. Alongside this, the Company generated an operating loss of $45.4 million and an adjusted operating loss of $2.5 million, however this does represent improvements on last year’s results by 51% and 94% respectively.
The results of the two branches of the company, Madison Square Garden Sports (MSGS) and Madison Square Garden Entertainment (MSGE) were also released. MSGS revenue decreased by 26% to $132.5 million. The loss was attributed to a lack of playoff-related revenue, combined with lower basketball and hockey league distribution.
The opposite was true for MSGE, which posted revenue of $185.6, up 47% from 2017. Among the higher event-related revenue coming from the Company’s venues, including Madison Square Garden itself, the rise in revenue has been attributed to a full quarter of operating results for their club and hospitality division, TAO Group.
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