Madison Square Garden Entertainment (MSGE) - 2025 Q2 - Quarterly Results

Financial Performance - For the fiscal 2025 second quarter, the company reported revenues of $407.4 million, an increase of $4.8 million, or 1%, compared to the prior year quarter[3]. - Operating income for the fiscal 2025 second quarter was $139.0 million, an increase of $1.6 million, or 1%, compared to the prior year period[3]. - Adjusted operating income for the fiscal 2025 second quarter was $164.0 million, an increase of $3.9 million, or 2%, compared to the prior year quarter[3]. - Revenues from entertainment offerings were $318.3 million, essentially unchanged compared to the prior year period, primarily due to lower event-related revenues[7]. - Total revenues for the three months ended December 31, 2024, were $407,417 thousand, a slight increase from $402,666 thousand in the same period of 2023[26]. - Net income for the three months ended December 31, 2024, was $75,893 thousand, down from $125,249 thousand in the prior year, representing a decrease of 39.5%[26]. - Adjusted operating income for the three months ended December 31, 2024, was $164,012 thousand, compared to $160,080 thousand in 2023, reflecting a year-over-year increase of 2.4%[28]. - Basic earnings per share for the three months ended December 31, 2024, were $1.57, down from $2.61 in the same period of 2023, a decrease of 39.7%[26]. Cash and Debt Management - Cash, cash equivalents, and restricted cash at the end of the period increased to $55,219 thousand from $37,572 thousand in the prior year, marking a significant increase of 47.0%[33]. - The company reported a decrease in net cash provided by operating activities to $85,499 thousand for the six months ended December 31, 2024, down from $105,232 thousand in 2023, a decline of 18.8%[33]. - The company paid down the full outstanding principal balance of $55 million under its revolving credit facility during the fiscal 2025 second quarter[15]. - The company’s long-term debt, net of deferred financing costs, was $584,701 thousand as of December 31, 2024, a decrease from $599,248 thousand as of June 30, 2024[31]. Expenses and Liabilities - Direct operating expenses associated with entertainment offerings decreased by $7.7 million, or 4%, compared to the prior year quarter[9]. - Selling, general and administrative expenses increased by $8.8 million, or 18%, primarily due to higher employee compensation and benefits[12]. - The company’s total current liabilities decreased slightly to $501,685 thousand as of December 31, 2024, from $505,823 thousand as of June 30, 2024[31]. - The company incurred $1,361 thousand in merger, spin-off, and acquisition-related costs during the six months ended December 31, 2024[28]. Ticket Sales and Events - Approximately 1.1 million tickets were sold during the 91st holiday season of the Christmas Spectacular, compared to over 1 million tickets sold during 193 shows last season[2]. - Arena license fees and other leasing revenues increased by $4.2 million, or 16%, to $29.8 million, due to three more Knicks and Rangers games played at The Garden[8].