Madison Square Garden Entertainment Corp. reported a significant 13 percent increase in revenue, capping a banner year that featured more than 960 events and attracted $6.3 million in ticket sales. The performance surge came on the heels of its separation from MSG Sphere, a futuristic music venue in Las Vegas.
Since its separation in April of last year, MSG Entertainment has focused on its core venues, which include iconic locations such as Madison Square Garden itself, the Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and the Chicago Theatre. The company also manages entertainment and sports bookings, the Radio City Rockettes and the Christmas Show production, and holds long-term stadium licensing agreements with the New York Knicks and New York Rangers.
Record-breaking performances and revenue growth
The fourth quarter of the year saw unprecedented activity at Madison Square Garden, highlighted by sold-out concerts including four nights with Olivia Rodrigo, performances by Niall Horan and TOMORROW X TOGETHER. Mike Gray, CFO of MSG Entertainment, highlighted the venue’s strategic use during playoff seasons for the Knicks and Rangers, which contributed significantly to the surge in revenue. He noted the increase in concert attendance as a reflection of their successful initiatives to host first-time headliners at the Garden.
Financial Highlights and Future Outlook
For the fiscal year ended June 30, MSG Entertainment reported revenue of $959.3 million, up 13% from the previous fiscal year. The company’s operating income increased to $111.9 million, with adjusted operating income rising to $211.5 million. In the fourth quarter alone, revenue increased 26% year-over-year to $186.1 million. Despite a quarterly operating loss of $8.9 million, adjusted operating income improved to $13.1 million.
Additionally, the fourth quarter saw a 48% increase in revenue from food, beverage and merchandise sales to $34.7 million. Looking ahead, Gray forecast a continuation of this growth trend, anticipating the company’s adjusted operating income to increase in the high single digits to low double digits in the next fiscal year.
