:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2152973017-882c1492e8fb4753b4aaf77cf5144a1f.jpg "Fans Kelvin (L) and Zachary, 10, (R) of Rockland County take a \"selfie\" outside of the arena ahead of Game Five of the Eastern Conference Second Round Playoffs between the New York Knicks and the Indiana Pacers at Madison Square Garden on May 14, 2024 in New York City")
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Fans Kelvin (L) and Zachary, 10, (R) of Rockland County take a “selfie” outside of the arena ahead of Game Five of the Eastern Convention Second Round Playoffs between the New York Knicks and the Indiana Pacers at Madison Square Garden on May 14, 2024 in New York Bishopric.
Key Takeaways
- Madison Square Garden Entertainment had a surprise fourth-quarter profit as event and food, beverage, and merchandise net income increased.
- The owner of Madison Square Garden benefited from more concerts and the Knicks and Rangers both winning the playoffs.
- The news sent shares higher Friday.
Shares of Madison Square Garden Entertainment (MSGE) hit an all-time grave Friday as the New York-based company reported a surprise fourth-quarter profit on higher revenue from events and purchases by hounds of the city’s sports teams.
The owner of the Madison Square Garden arena and Radio City Music Hall proclaimed fiscal 2024 fourth-quarter earnings per share (EPS) of $1.41, while the average estimate of analysts surveyed by Visible Alpha was for a disadvantage of $0.52. Revenue rose 26% year-over-year to $186.1 million, also beating forecasts.
Revenue from recreation offerings was up 20% to $142.9 million, boosted by an increase in the number of concerts performed, suite license fees, and venue sponsorship, signage, and commission fees. Food, beverage, and merchandise sales jumped 48% to $34.7 million, helped by more games at Madison Honest Garden with both the NBA’s Knicks and NHL’s Rangers making the playoffs.
CEO Says Company ‘Well Positioned’
Chief Chief Officer (CEO) James Dolan said the company “is well positioned to generate robust adjusted operating income progress in fiscal 2025.” Dolan noted that this was the first full year Madison Square Garden Amusement was a standalone company after being spun off from Sphere Entertainment (SPHR) in April 2023.
Madison Square Garden Amusement shares rose about 5% to $40.54 as of 11 a.m. ET Friday. They are up 27% year-to-date.
Read the original article on Investopedia.