By Michael Dabaie
Madison Square Garden Sports Corp. reported fourth quarter revenue that exceeded analysts’ expectations.
The professional sports company with assets like the New York Knicks and New York Rangers posted fourth quarter revenue of $ 146.9 million, compared to negative revenue of $ 7 million for the year-ago quarter. That was above FactSet’s consensus of $ 120.2 million.
Madison Square Garden Sports said the fourth quarter was highlighted by the return of the New York Knicks to the NBA playoffs. In mid-May, New York state eased capacity constraints, allowing what was then the largest indoor crowds in New York state since the pandemic began for their three home games at Madison Square Garden, the company said.
Before the playoffs, both the Knicks and New York Rangers completed their 2020-21 regular seasons in the fourth quarter of fiscal 2021, with home games at Madison Square Garden being limited to 10% capacity.
Revenue growth was driven by higher league payouts, fees for local media rights from MSG Networks, sponsorship and signage revenue, playoff-related revenue, and regular season ticket revenue.
The company recorded an operating loss of $ 20.8 million and an adjusted operating loss of $ 5.8 million for the fourth quarter, compared to an operating loss of $ 44.9 million and an adjusted operating loss of $ 33.6 million in the fourth quarter Quarter of the previous year.
Net income attributable to shareholders was $ 49.6 million on a loss of $ 78.5 million. Earnings per share were $ 2.03 versus a loss of $ 3.27.
The fourth quarter included an income tax benefit of $ 73.1 million, while the prior-year period included an income tax expense of $ 31.7 million.
“Despite a challenging year, last season we had tremendous feedback from Knicks and Rangers fans, including sold out games and robust local reviews. For 2021-22, we look forward to building on that excitement as we prepare for the crowd, “and full 82-game seasons,” said Chief Executive Andrew Lustgarten.
Write to Michael Dabaie at [email protected]
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