Madison Square Garden Entertainment (MSGE) came out with quarterly earnings of $1.41 per share, beating the Zacks Consensus Estimate of a loss of $0.57 per share. This compares to loss of $0.47 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 347.37%. A quarter ago, it was expected that this live entertainment company would post earnings of $0.05 per share when it actually produced earnings of $0.06, delivering a surprise of 2 ...

Financial Performance - Fiscal 2024 revenues reached $959.3 million, an increase of $107.8 million or 13% compared to the prior year, exceeding the high-end of guidance range[1] - Fiscal 2024 operating income was $111.9 million, up $6.9 million or 7% year-over-year, and adjusted operating income was $211.5 million, an increase of $9.9 million or 5%[1][2] - In Q4 2024, revenues were $186.1 million, a 26% increase from $147.9 million in Q4 2023, with an operating loss of $8.9 million improving by $12.9 million[2][7] - Q4 2024 revenues from entertainment offerings were $142.9 million, a 20% increase, driven by higher event-related revenues and suite license fee revenues[3] - Revenues from entertainment offerings reached $142.9 million, a 19% increase compared to $119.6 million in the prior year[13] - Net income attributable to MSG Entertainment's stockholders for the three months ended June 30, 2024, was $66.9 million, compared to a net loss of $24.5 million in the same period of 2023[13] - Adjusted operating income for the three months ended June 30, 2024, was $13.1 million, significantly up from $0.7 million in the same period of 2023[16] - The company reported a basic earnings per share of $1.42 for the three months ended June 30, 2024, compared to a loss of $0.47 in the same period of 2023[13] Guest Attendance and Events - The company hosted approximately 6.3 million guests at over 960 events during fiscal 2024, including over 1 million tickets sold for the Christmas Spectacular[1] Revenue Sources - Food, beverage, and merchandise revenues in Q4 2024 were $34.7 million, up $11.2 million or 48%, reflecting increased sales at sporting events and concerts[5] - Arena license fees and other leasing revenues in Q4 2024 were $8.5 million, a 75% increase due to more regular season games played[3] Expenses - Selling, general, and administrative expenses in Q4 2024 were $55.8 million, an increase of $3.1 million or 6% compared to the prior year[6] - Direct operating expenses associated with entertainment offerings in Q4 2024 were $99.7 million, an increase of $11.7 million or 13% year-over-year[3] - Direct operating expenses for entertainment offerings increased to $99.7 million, up from $88.0 million in the prior year[13] - The company incurred restructuring charges of $2.8 million for the three months ended June 30, 2024, compared to $0.4 million in the same period of 2023[16] Cash Flow and Assets - Cash and cash equivalents decreased to $33.6 million as of June 30, 2024, down from $84.4 million a year earlier[17] - Total assets increased to $1.55 billion as of June 30, 2024, compared to $1.40 billion in the prior year[17] - Total liabilities rose to $1.58 billion as of June 30, 2024, up from $1.47 billion in the same period of 2023[17] - Net cash provided by operating activities for the twelve months ended June 30, 2024, was $111.266 million, a decrease from $135.694 million in the previous period[19] - Net cash used in investing activities was $(62.371) million, compared to $30.305 million in the prior year, indicating a significant increase in cash outflow[19] - Net cash used in financing activities totaled $(99.695) million, an improvement from $(144.217) million in the previous period[19] - The net decrease in cash, cash equivalents, and restricted cash for the period was $(50.800) million, contrasting with an increase of $21.782 million in the prior year[19] - Cash, cash equivalents, and restricted cash at the beginning of the period were $84.355 million, while the end of the period balance dropped to $33.555 million[19] Future Outlook - The company plans to generate robust adjusted operating income growth in fiscal 2025, leveraging its unique portfolio of live entertainment offerings[1]

Core Viewpoint - Madison Square Garden Entertainment Corp (MSGE) is expected to experience robust growth in its Christmas Spectacular revenues for fiscal 2025, despite a record performance in fiscal 2024, driven by higher show counts, modest increases in sell-through, and increased ticket pricing [2]. Group 1: Financial Performance and Projections - Analyst estimates Christmas Spectacular revenues of approximately $157 million for fiscal 2025 [2]. - Sponsorship revenues are projected to reach $286 million in fiscal 2025, reflecting a 7.5% year-over-year growth compared to just 1% growth in fiscal 2024 [6]. - The company is well-positioned to exceed fiscal 2025 consensus expectations for revenues, adjusted operating income, and free cash flows [5]. Group 2: Analyst Ratings and Market Sentiment - The rating for Madison Square Garden was upgraded from Neutral to Buy, with the price target raised from $41 to $45 [2]. - The recent selloff in MSGE stock is viewed as an opportunity for investors to gain exposure to a unique, pure-play venues business with an attractive financial model [3]. - The company is benefiting from a strong event bookings environment, supported by a combination of high supply of concert tours and strong fan demand for live entertainment [4]. Group 3: Stock Performance - Shares of Madison Square Garden Entertainment rose by 1.10% to $39.40 at the time of publication [8].

[Filing Information](index=1&type=section&id=Filing%20Information) This section details the company's quarterly report filing, including its type and registered stock information - MADISON SQUARE GARDEN ENTERTAINMENT CORP. filed a Quarterly Report on Form 10-Q for the period ended March 31, 2024[2](index=2&type=chunk) Title of each class | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Class A Common Stock | MSGE | New York Stock Exchange | Class A Common Stock par value $0.01 per share | Class A Common Stock par value $0.01 per share | 41,158,016 | | :----------------------------------- | :--------- | | Class B Common Stock par value $0.01 per share | 6,866,754 | [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements and management's discussion [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements, covering balance sheets, operations, cash flows, and equity [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific dates Condensed Consolidated Balance Sheets (in thousands) | ASSETS | March 31, 2024 | June 30, 2023 | | :-------------------------------- | :------------- | :------------ | | Cash, cash equivalents, and restricted cash | $28,308 | $84,355 | | Accounts receivable, net | $108,560 | $63,898 | | Total current assets | $255,798 | $295,281 | | Total assets | $1,458,571 | $1,401,157 | | LIABILITIES AND DEFICIT | March 31, 2024 | June 30, 2023 | | :-------------------------------- | :------------- | :------------ | | Total current liabilities | $550,762 | $540,640 | | Long-term debt, net | $602,468 | $630,184 | | Total liabilities | $1,553,134 | $1,470,629 | | Total deficit | $(94,563) | $(69,472) | | Total liabilities and deficit | $1,458,571 | $1,401,157 | - Total assets increased by **$57,414 thousand (4.1%)** from June 30, 2023, to March 31, 2024, while total liabilities increased by **$82,505 thousand (5.6%)**. The company's deficit widened from **$(69,472) thousand to $(94,563) thousand**[9](index=9&type=chunk) [Condensed Consolidated and Combined Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20and%20Combined%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net income over specific reporting periods Condensed Consolidated and Combined Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Nine Months Ended March 31, 2024 | Nine Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | | Total revenues | $228,313 | $201,229 | $773,191 | $703,561 | | Total direct operating expenses | $(142,021) | $(115,133) | $(446,459) | $(397,398) | | Operating income | $16,803 | $24,664 | $120,801 | $126,798 | | Net income attributable to MSG Entertainment's stockholders | $2,795 | $21,720 | $77,373 | $101,080 | | Basic EPS | $0.06 | $0.42 | $1.59 | $1.95 | | Diluted EPS | $0.06 | $0.42 | $1.58 | $1.95 | - For the three months ended March 31, 2024, total revenues increased by **13.5% YoY**, but net income attributable to stockholders decreased significantly by **87.1% YoY**. For the nine months ended March 31, 2024, total revenues increased by **9.9% YoY**, while net income attributable to stockholders decreased by **23.5% YoY**[12](index=12&type=chunk) [Condensed Consolidated and Combined Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20and%20Combined%20Statements%20of%20Comprehensive%20Income) This section presents the company's comprehensive income, including net income and other comprehensive income components Condensed Consolidated and Combined Statements of Comprehensive Income (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Nine Months Ended March 31, 2024 | Nine Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | | Net income | $2,795 | $21,720 | $77,373 | $100,527 | | Other comprehensive income, net of income taxes | $372 | $267 | $1,114 | $878 | | Comprehensive income attributable to MSG Entertainment | $3,167 | $21,987 | $78,487 | $101,958 | - Comprehensive income attributable to MSG Entertainment decreased by **85.6%** for the three months ended March 31, 2024, and by **23.0%** for the nine months ended March 31, 2024, compared to the prior year periods[15](index=15&type=chunk) [Condensed Consolidated and Combined Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20and%20Combined%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated and Combined Statements of Cash Flows (in thousands) | Activity | Nine Months Ended March 31, 2024 | Nine Months Ended March 31, 2023 | | :--------------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $111,054 | $132,341 | | Net cash (used in) provided by investing activities | $(72,625) | $13,261 | | Net cash used in financing activities | $(94,476) | $(85,194) | | Net (decrease) increase in cash, cash equivalents, and restricted cash | $(56,047) | $60,408 | | Cash, cash equivalents, and restricted cash, end of period | $28,308 | $122,981 | - Net cash provided by operating activities decreased by **$21,287 thousand (16.1%)** for the nine months ended March 31, 2024, compared to the prior year. Investing activities shifted from a net cash inflow of **$13,261 thousand** to a net cash outflow of **$(72,625) thousand**, primarily due to a loan to a related party and the absence of proceeds from dispositions[18](index=18&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) [Condensed Consolidated and Combined Statements of (Deficit) Equity](index=7&type=section&id=Condensed%20Consolidated%20and%20Combined%20Statements%20of%20(Deficit)%20Equity) This section details changes in the company's stockholders' equity or deficit over the reporting period Condensed Consolidated and Combined Statements of (Deficit) Equity (in thousands) | Equity Component | Balance as of June 30, 2023 | Net Income | Other Comprehensive Income | Share-based Compensation | Tax withholding | Stock Repurchases | Balance as of March 31, 2024 | | :-------------------------------- | :-------------------------- | :--------- | :------------------------- | :----------------------- | :-------------- | :---------------- | :--------------------------- | | Common Stock | $519 | — | — | — | $5 | — | $524 | | Additional Paid-in Capital | $17,727 | — | — | $26,186 | $(13,383) | $(874) | $29,656 | | Treasury Stock | $(25,000) | — | — | — | — | $(115,512) | $(140,512) | | Retained Earnings (Deficit) | $(28,697) | $77,373 | — | — | — | — | $48,676 | | Accumulated Other Comprehensive Loss | $(34,021) | — | $1,114 | — | — | — | $(32,907) | | Total Stockholders' (Deficit) Equity | $(69,472) | $77,373 | $1,114 | $26,186 | $(13,378) | $(116,386) | $(94,563) | - The total stockholders' deficit increased from **$(69,472) thousand** as of June 30, 2023, to **$(94,563) thousand** as of March 31

LEGENDARY BRANDS ◼ ~67% of shares were distributed to shareholders, while 33% were retained by Sphere Entertainment Co. MADISON SQUARE GARDEN ENTERTAINMENT MAY 2024 FORWARD LOOKING STATEMENTS AND MARKET DATA Madison Square Garden Entertainment Corp. (the "Company" or "MSG Entertainment") has filed with the Securities and Exchange Commission an Annual Report on Form 10-K for the year ended June 30, 2023 (the "Annual Report") and Quarterly Reports on Form 10-Q for the quarters ended September 30, 2023, Decemb ...

MADISON SQUARE GARDEN ENTERTAINMENT CORP. REPORTS FISCAL 2024 THIRD QUARTER RESULTS FY24 Revenue Range Narrowed to $940-950 Million, as Compared to Prior Range of $930-950 Million FY24 Operating Income Range Increased to $100-110 Million, Versus Prior $95-105 Million FY24 AOI Range Increased to $200-210 Million, as Compared to $195-205 Million Previously (1) NEW YORK, N.Y., May 9, 2024 - Madison Square Garden Entertainment Corp. (NYSE: MSGE) ("MSG Entertainment" or the "Company") today reported financial re ...

Financial Data and Key Metrics Changes - For fiscal Q2 2024, the company reported revenues of $402.7 million, an increase of $46.8 million or 13% compared to the prior-year quarter, primarily driven by higher event-related revenues [54] - Adjusted operating income for the second quarter was $151 million, reflecting a year-over-year increase of $24.7 million, attributed to the rise in revenues despite higher operating expenses [55] - The company has increased its financial guidance for fiscal 2024, now expecting revenues between $930 million and $950 million, up from a previous range of $900 million to $930 million [62] Business Line Data and Key Metrics Changes - The bookings business is on track to achieve a low-double-digit percentage increase in events for fiscal 2024, with The Garden expected to set a new record for the number of concerts [39][68] - The Christmas Spectacular production sold over 1 million tickets, marking a return to pre-pandemic attendance levels and generating nearly $150 million in revenues, a new record for the production [40][57] - Family shows, including Cirque du Soleil's holiday show, exceeded expectations, indicating strong demand in this category [45] Market Data and Key Metrics Changes - The company is experiencing strong consumer demand across its venues, with a double-digit percentage increase in ticket sales for concerts in the second half of fiscal 2024 compared to the previous year [16] - Group sales for the Christmas Spectacular saw a 40% year-over-year increase, reflecting a rebound in this segment post-pandemic [48] - The company noted that the Knicks and Rangers played nine fewer home games in the recent quarter compared to the prior year, but this timing impact is expected to reverse over the fiscal year [46] Company Strategy and Development Direction - The company is focused on increasing utilization of its venues, particularly The Garden, and is exploring new artist residencies to drive incremental growth [90] - A new partnership with Oak View Group for sponsorship sales is expected to enhance growth opportunities in this area [77] - The company aims to balance capital allocation between returning capital to shareholders and paying down debt, having repurchased approximately $140 million of its stock since its spin-off [42][65] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing strong demand for live entertainment, despite economic uncertainties, and noted that consumer demand remains robust [15] - The company anticipates strong top-line growth in the second half of fiscal 2024, with a revised revenue guidance reflecting a 10% growth compared to fiscal 2023 [62] - Management highlighted the potential for margin expansion in the future, driven by increased utilization and higher average ticket prices [80][86] Other Important Information - The company fully paid down its revolving credit facility during the quarter, reflecting a focus on reducing debt [64] - The new corporate office lease will impact adjusted operating income due to accounting rules, but management remains optimistic about margin growth [27] Q&A Session Summary Question: Update on growth areas in bookings - Management confirmed solid visibility for concert bookings, with expectations to exceed initial goals, while family shows played a smaller role moving forward [68][69] Question: Margin performance outlook - Management acknowledged headwinds impacting adjusted operating income but sees growth opportunities in bookings and premium venues [80][85] Question: Utilization tracking at The Garden - Management indicated that venue utilization is similar to the previous year, with efforts to increase multiple-event days and address challenges during playoff windows [102]

Company Overview - MSG Entertainment became an independent publicly traded company on April 21, 2023, following the MSGE Distribution, where approximately 67% of its outstanding common stock was distributed to Sphere Entertainment's stockholders[117]. - MSG Entertainment's financial statements for periods prior to April 20, 2023, were presented on a carve-out basis, which may not reflect its results as a standalone company[125]. - The company operates in a competitive environment, with risks including economic downturns that could adversely affect business and results of operations[112]. - MSG Entertainment's revenues and assets are primarily concentrated in the New York City metropolitan area, with all operations located in the United States[116]. - The company has a portfolio of iconic venues, including The Garden and Radio City Music Hall, and showcases a diverse mix of concerts, family shows, and sporting events[115]. Financial Performance - Revenues for the three months ended December 31, 2023 increased by $46,786 (13%) to $402,666 compared to $355,880 in the prior year[129]. - Event-related revenues increased by $44,263 for the three months and $35,993 for the six months ended December 31, 2023, driven by higher concert revenues of $28,851 and $21,534, respectively[130]. - Operating income for the three months ended December 31, 2023 increased by $23,980 (21%) to $137,423 compared to $113,443 in the prior year[143]. - Net income for the three months ended December 31, 2023 increased by $28,168 (29%) to $125,249 compared to $97,081 in the prior year[129]. - Adjusted operating income (AOI) for the three months ended December 31, 2023, was $150,960, representing a 20% increase from $126,310 in the prior year[154]. - For the six months ended December 31, 2023, AOI was $150,246, a 9% increase from $137,798 in the same period last year[155]. Expenses and Costs - Direct operating expenses for the three months ended December 31, 2023 increased by $22,158 (12%) to $202,761 compared to $180,603 in the prior year[135]. - Selling, general, and administrative expenses increased by $5,088 (12%) for the three months ended December 31, 2023, reflecting MSG Entertainment's standalone operations[138]. - Interest expense for the three months ended December 31, 2023 increased by $1,844 (14%) to $15,049 compared to $13,205 in the prior year[145]. - Restructuring charges for the three months ended December 31, 2023 were $888, a significant decrease from $7,359 in the prior year[141]. Cash Flow and Debt - The company had unrestricted cash and cash equivalents of $35,229 as of December 31, 2023[159]. - Total debt outstanding as of December 31, 2023, was $633,750, with $132,409 available under the National Properties Revolving Credit Facility[159]. - The interest rate on the National Properties Facilities as of December 31, 2023, was 8.46%[162]. - The National Properties Credit Agreement requires a minimum liquidity level of $50,000, which was met as of December 31, 2023[164]. - Net cash provided by operating activities for the six months ended December 31, 2023 was $105,232, an increase of $35,896 compared to the prior year[170]. - Net cash used in investing activities increased by $85,121 to $62,731 for the six months ended December 31, 2023, primarily due to a loan to a related party[171]. - Net cash used in financing activities increased by $88,731 to $89,284 for the six months ended December 31, 2023, driven by higher principal debt repayments and stock repurchases[172]. Risks and Economic Conditions - The company reported that its future performance is dependent on general economic conditions, which may affect demand for suite licenses and tickets, as well as concession and merchandise sales[123]. - The company is subject to various risks, including the impact of governmental regulations and the performance of its subsidiaries under various agreements[113]. - A hypothetical 200 basis point increase in floating interest rates would increase the Company's interest expense by $12,675 on outstanding amounts under credit facilities[177]. - The Company experienced an increase in deferred revenue, contributing to the improvement in operating cash flow[170]. - The absence of proceeds from prior year asset dispositions negatively impacted investing cash flow in the current period[171]. Seasonal Trends - The Company typically earns a disproportionate share of its revenues and operating income in the second and third quarters due to seasonal events like the Christmas Spectacular[173]. - The Company sold over 1,000,000 tickets for the Christmas Spectacular, an increase from over 930,000 tickets sold in the prior year[131]. Lease and Rent Expenses - Increased rent expenses are expected in Fiscal Year 2024 due to a new corporate office lease that runs through 2046[123].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-Q ________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41627 MADISON SQUARE GARDEN ENTERTAINMENT CORP. (Exact name of registrant as ...

Madison Square Garden Entertainment Corp. (NYSE:MSGE) Q1 2024 Earnings Conference Call November 7, 2023 10:00 AM ET Company Participants Ari Danes – Senior Vice President, Investor Relations and Treasury Dave Byrnes – Executive Vice President and Chief Financial Officer Conference Call Participants Peter Supino – Wolfe Research Stephen Laszczyk – Goldman Sachs Brandon Ross – Lightshed Partners Ben Swinburne – Morgan Stanley David Karnovsky – J.P. Morgan Peter Henderson – Bank of America Operator Good mornin ...