MSG Entertainment revenue dips due to less concerts
Madison Square Garden Entertainment (MSGE) has reported revenue of US$142.2 million in its fiscal 2024 first quarter, down 3% ($4.2m) year over year.
The financial results are MSGE’s first as a standalone live entertainment company after it spun off from MSG’s Sphere and MSG Networks businesses in April.
MSGE – which owns venues including New York’s Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, Beacon Theatre and The Chicago Theatre – said event-related revenues narrowed by $8.3m compared to the same period last year.
“This decrease primarily reflected a lower number of concerts held at the company’s venues as compared to the prior year quarter, partially offset by higher per-concert revenues in the current year period,” MSG Entertainment said.
The prior-year quarter benefited from some concerts that were rescheduled due to the Covid-19 pandemic, plus, Madison Square Garden (cap. 21,000) enjoyed a 15-show run from Harry Styles from 20 August to 21 September 2022 that grossed $63.1m from 277,000 ticket sales, according to Billboard Boxscore.
Also revealed in the fiscal Q1 report, MSG Entertainment booked an operating loss of $33.4m (an increase of $22.1m as compared to the prior year quarter) and an adjusted operating loss of $0.7m, as compared to adjusted operating income of $11.5m in the prior year quarter.
The prior-year quarter benefited from some rescheduled concerts, plus, MSG enjoyed a 15-show run from Harry Styles
The company attributed the increase in its losses to restructuring charges, higher selling, general and administrative expenses, and lower revenues.
However, MSGE’s chief financial officer Dave Byrnes expressed optimism about the future, stating that the company’s venues are poised to surpass their concert goals for the year.
The company will achieve a low double-digit percentage increase in event bookings this fiscal year, thanks to a new generation of artists who have graduated from smaller buildings in its portfolio to its flagship venue, Madison Square Garden.
“This fiscal year, there are a number of acts, including Olivia Rodrigo, Tyler Childers and Niall Horan, who previously performed at either The Beacon [Theatre] or Radio City [Music Hall] that will soon headline the Garden for the first time in their careers,” said Byrnes. What’s more, he added, “a number of these first-time acts” are playing multiple nights and experiencing “strong ticket demand for their entire run.”
“We’re currently on sale with more concerts at our venues than we were at this time last year for the second half of fiscal ’23,” said Byrnes, “and of those on-sales, a majority of those tickets are already sold, and sell-through on those shows is currently up [a] high single-digit percentage as compared to the second half of fiscal ’23.”
Looking at the full fiscal year, MSGE is estimating revenues of $900m to $930m, operating income of $85m to $95m and adjusted operating income of $160m to $170m.
Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.