Financial Data and Key Metrics Changes - For Q1 fiscal 2026, the company reported revenues of $158.3 million, an increase of 14% compared to the prior year quarter, driven by growth in entertainment offerings and higher food, beverage, and merchandise revenues [10][11] - Adjusted operating income for the first quarter was $7.1 million, an increase of $5.2 million year-over-year, despite higher SG&A and direct operating expenses [11] - The company had $30 million of unrestricted cash and a total debt balance of $622 million as of September 30 [11][12] Business Line Data and Key Metrics Changes - The company welcomed over 900,000 guests across 140 events in the quarter, setting a record for the number of concerts at the Garden [4][5] - Food and beverage per caps at concerts increased, while per caps at theaters decreased compared to the prior year, attributed to the mix of events [5] - The Christmas Spectacular is set to have 215 shows this year, up from 200 last year, with advanced ticket sales pacing ahead of the previous year [7][9] Market Data and Key Metrics Changes - The company is seeing strong demand for the Christmas Spectacular, expecting to host over 1 million guests this holiday season [17] - Advanced ticket revenues for the Christmas Spectacular are pacing up double digits compared to last year, driven by higher individual and group ticket sales [17] - Concert bookings are on track to exceed last year's total, with nearly 85% of the concert booking goal achieved for the year [21][22] Company Strategy and Development Direction - The company is focused on capital allocation priorities, including maintaining a strong balance sheet, pursuing compelling opportunities, and returning capital to shareholders [26][28] - The internal sales team for sponsorships is largely in place, aiming to capitalize on upcoming opportunities in fiscal 2026 and beyond [34] - The company is exploring ways to enhance the Christmas Spectacular and improve per-show revenues through strategic pricing and partnerships [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory for fiscal 2026, citing positive momentum across the business [13] - The company is closely monitoring the macro environment but continues to see strong consumer demand, particularly for concerts and events [39] - Management is optimistic about the upcoming holiday season and the potential for growth in various business segments [43] Other Important Information - The company repurchased approximately $25 million of Class A common stock during the quarter, with $45 million remaining under the current buyback authorization [12][28] - A non-cash impairment charge of $13.8 million related to an operating lease was included in the first quarter results [11] Q&A Session Summary Question: Thoughts on the Christmas Spectacular's sell-through and pricing - Management noted strong demand for the Christmas Spectacular, expecting over 1 million guests and advanced ticket revenues pacing up double digits compared to last year [17] Question: Updates on concert bookings for the Garden - Management confirmed robust bookings, with more concerts booked for fiscal 2026 than held last year, and expressed confidence in increasing event numbers [21][22] Question: Progress on major residency acts for fiscal 2027 - Management indicated progress in finalizing a residency for next year, which could significantly contribute to concert growth [26] Question: Transitioning sponsorship business back in-house - Management confirmed the internal sales team is in place and highlighted recent partnerships as evidence of progress in the sponsorship business [34] Question: Updates on Penn Station redevelopment - Management provided a timeline for redevelopment, emphasizing commitment to improving the area surrounding Penn Station [42] Question: Bookings growth by event type - Management expects growth primarily driven by concerts, with modest growth in family shows and sports events anticipated [43]

Financial Data and Key Metrics Changes - For Q1 fiscal 2026, the company reported revenues of $158.3 million, an increase of 14% compared to the prior year quarter, driven by growth in entertainment offerings and higher food, beverage, and merchandise revenues [10][11] - Adjusted operating income for the first quarter was $7.1 million, an increase of $5.2 million year-over-year, primarily due to increased revenues, partially offset by higher SG&A and direct operating expenses [11] - The company had $30 million of unrestricted cash and a total debt balance of $622 million as of September 30, 2025 [11] Business Line Data and Key Metrics Changes - The company welcomed over 900,000 guests across 140 events during the quarter, setting a new record for the number of concerts in any quarter at the Garden [4][5] - Food and beverage per caps at concerts increased, while per caps at theaters decreased compared to the prior year, attributed to the mix of events [5] - The Christmas Spectacular is set to have 215 shows this year, up from 200 last year, with advanced ticket sales pacing ahead of the previous year [7][8] Market Data and Key Metrics Changes - The company is seeing strong demand for the Christmas Spectacular, expecting to host over 1 million guests this holiday season, with advanced ticket revenues pacing up double digits compared to last year [17][18] - Concert bookings are on track to exceed last year's total, with nearly 85% of the concert booking goal achieved for the year [21][22] Company Strategy and Development Direction - The company is focused on capital allocation priorities, including maintaining a strong balance sheet, pursuing compelling opportunities, and returning capital to shareholders [28][29] - The internal sales team for marketing partnerships is largely in place, aiming to capitalize on upcoming opportunities in fiscal 2026 and beyond [9][36] - The company is exploring ways to enhance the Christmas Spectacular and improve per-show revenues through strategic pricing and partnerships [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory for fiscal 2026, citing positive momentum across the business and expectations for solid growth in revenue and adjusted operating income [12][13] - The company is closely monitoring the macro environment but continues to see strong consumer demand, particularly for concerts and the Christmas Spectacular [44][45] Other Important Information - The company repurchased approximately $25 million of its Class A common stock during the quarter, with $45 million remaining under the current buyback authorization [12][29] - The cash component of arena license fees will be $45 million this fiscal year, growing at 3% annually through fiscal 2055 [6] Q&A Session Summary Question: Thoughts on the Christmas Spectacular's sell-through and pricing - Management noted strong demand for the Christmas Spectacular, expecting over 1 million guests and advanced ticket revenues pacing up double digits compared to last year [17][18] Question: Updates on concert bookings for the Garden - Management confirmed robust bookings, with more concerts booked for fiscal 2026 than held last year, and expressed confidence in increasing event numbers [21][22] Question: Progress on major residency acts for fiscal 2027 - Management indicated progress in finalizing a residency for next year, which could significantly enhance concert growth at the Garden [26][27] Question: Transitioning sponsorship business back in-house - Management confirmed the internal sales team is largely in place and optimistic about capitalizing on sponsorship opportunities [35][36] Question: Updates on Penn Station redevelopment - Management provided a timeline for redevelopment, emphasizing commitment to improving the area and collaboration with stakeholders [50] Question: Bookings growth by event type - Management expects growth driven by concerts, family shows, and sports, with a focus on improving financial results in family shows and modest growth in sports events [51][53]

NOVEMBER 2025 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, 2025 (the "Annual Report") and a Quarterly Report (the "Quarterly Report") on Form 10-Q for the quarter ended September 30, 2025. The Annual Report and the Quarterly Report contain extensive disclosure about the Company and its business, including selected histo ...

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported full year revenues of $942.7 million and adjusted operating income (AOI) of $222.5 million, representing a 5% year-over-year increase [5] - In the fourth quarter, revenues were $154.1 million, a decrease of 17% compared to the prior year, primarily due to lower event-related revenues from concerts and food, beverage, and merchandise [12][13] - Fourth quarter adjusted operating income decreased by $14.4 million to a loss of $1.3 million compared to the prior year quarter [13] Business Line Data and Key Metrics Changes - The company hosted nearly 6 million guests at over 975 live events during fiscal year 2025, with modest growth in the number of events held at venues compared to the prior year [6] - The Christmas Spectacular production sold approximately 1.1 million tickets across 200 performances, generating over $170 million in revenue, a new record for the production [8] - The number of concerts at theaters increased, while the number of concerts at The Garden decreased year-over-year due to the end of Billy Joel's residency [7] Market Data and Key Metrics Changes - The Knicks and Rangers played a combined 97 home games at The Garden, down from 103 games in the prior year, impacting shared revenue streams [9] - The company expects cash component of Arena license fees to be approximately $45 million in fiscal year 2026, growing 3% each year through fiscal year 2055 [9] Company Strategy and Development Direction - The company aims to increase the number of events at venues, drive growth in per event profitability, and expand sponsorship and premium hospitality businesses [5] - The strategic decision to bring sponsorship sales in-house is expected to capitalize on upcoming opportunities in fiscal year 2026 [10] - The company is focused on organic growth and remains confident in delivering long-term shareholder value [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive solid growth in revenue and adjusted operating income in fiscal year 2026, supported by strong consumer and corporate demand [5] - The company anticipates another year of substantial free cash flow generation and plans to explore ways to opportunistically return capital to shareholders [14][40] Other Important Information - The company repurchased approximately $40 million of Class A common stock during fiscal year 2025, with $70 million remaining under the current share repurchase authorization [15][40] - The company is in the late planning stages for a new residency at The Garden, which is expected to create potential for concert growth in fiscal year 2027 [35] Q&A Session Summary Question: Update on ticket sales for the Christmas Spectacular - Management noted that advanced ticket revenue is pacing well ahead of last year, with higher individual and group ticket sales [18][19] Question: Forward bookings trends for fiscal year 2026 - Management indicated that they expect to increase the number of booking events, including concerts, and are currently pacing ahead in bookings [25][27] Question: Progress on utilization at The Garden - Management reported an effective utilization of a little over 65% for The Garden and is looking to increase event growth in fiscal year 2026 [32] Question: Capital returns strategy for fiscal year 2026 - Management stated that they will continue to explore ways to opportunistically return capital to shareholders while maintaining a strong balance sheet [38][40] Question: Outlook for sponsorship and consumer demand - Management expressed optimism about sponsorship opportunities and noted strong consumer demand, with advanced ticket sales pacing well [51][53]

Company Overview and Performance - MSG Entertainment's spin-off from Sphere Entertainment Co was completed on April 20, 2023[10] - In fiscal year 2025, the company hosted over 975 live events[14] and welcomed nearly 6 million guests[15] - The company reported total revenue of $942.7 million in fiscal year 2025[52] - Operating income for fiscal year 2025 was $122.1 million[52], while adjusted operating income (AOI) reached $222.5 million[52] Key Assets and Agreements - The company has 35-year deals to host home games for the New York Knicks & Rangers[15] - Madison Square Garden is the 2 grossing venue of its size in the world[16, 17] - Radio City Music Hall is the 1 grossing venue of its size in the world[18, 19] - The company has valuable long-term arena license agreements with MSG Sports, including 3% annual escalators[40, 41] Financial Position and Strategy - As of June 30, 2025, total debt outstanding was $609 million, with unrestricted cash and cash equivalents of $43 million, resulting in net debt of $566 million[56] - Net debt leverage is 2.5x, calculated using fiscal 2025 AOI of $222.5 million[56, 57] - The company repurchased $180 million of Class A shares since April 2023 and has $70 million remaining under share repurchase authorization[58]

Financial Data and Key Metrics Changes - For the fiscal third quarter, the company reported revenues of $242 million, an increase of $14.2 million or 6% year-over-year [13] - Adjusted operating income (AOI) for the quarter was $57.9 million, reflecting a $19.3 million or 50% increase compared to the prior year [15] Business Line Data and Key Metrics Changes - Revenues from entertainment offerings increased by $14 million or 10%, driven by higher per event revenues and an increase in the number of events year-over-year [14] - The Christmas Spectacular generated over $170 million in total revenues across 200 performances, with year-over-year growth in per show attendance and average ticket prices [11] Market Data and Key Metrics Changes - The company hosted over 1.5 million guests across 195 events during the quarter, indicating strong consumer demand for live entertainment [9] - Concert bookings saw a year-over-year decrease in the number of events, primarily due to the absence of three Billy Joel performances from the prior year [10] Company Strategy and Development Direction - The company aims for mid to high single-digit AOI growth for the fiscal year and continues to prioritize opportunistic capital returns to shareholders [7] - There is a focus on improving premium hospitality offerings and marketing partnerships, with notable sponsorship renewals [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the New York Arena concert market and tough comparisons due to last year's events, but remains optimistic about solid AOI growth for fiscal 2025 [22] - The company is encouraged by early booking activity for fiscal 2026, with expectations of setting a new record for concerts at The Garden [27] Other Important Information - The company has repurchased approximately $40 million of its Class A common stock to date this fiscal year, including $15 million during the third quarter [8][16] - As of March 31, the company had approximately $89 million in unrestricted cash and a debt balance of approximately $613 million [16] Q&A Session Summary Question: AOI growth and fourth-quarter outlook - Management noted several factors impacting the fourth quarter, including a decline in the overall New York Arena concert market and tough comparisons from last year [20] Question: Concert bookings for 2026 - Management indicated positive signs for concert bookings in fiscal 2026, with substantial visibility into upcoming events [27] Question: Penn Station project and theater sale - Management expressed commitment to improving Penn Station and surrounding areas, with no current updates on the potential sale of the theater [33] Question: Christmas Spectacular and tourism exposure - Approximately 10% of Christmas Spectacular tickets sold were to international tourists, with a low to mid single-digit percentage for concert ticket sales [34] Question: Growth drivers for Christmas Spectacular - Management highlighted growth potential through more shows and higher average ticket yields, with advanced ticket sales pacing up over 60% in gross ticket revenue [41] Question: Capital returns strategy - Management reiterated three main priorities for capital allocation, including maintaining a strong balance sheet and opportunistically returning capital to shareholders [46]

Financial Data and Key Metrics Changes - For the fiscal third quarter, the company reported revenues of $242 million, an increase of $14.2 million or 6% year over year [12] - Adjusted operating income (AOI) for the quarter was $57.9 million, up $19.3 million or 50% compared to the prior year quarter [14] Business Line Data and Key Metrics Changes - Revenues from entertainment offerings increased by $14 million or 10%, driven by higher per event revenues and an increase in the number of events year over year [13] - The Christmas Spectacular generated over $170 million in total revenues across 200 performances, with year over year growth in per show attendance and average ticket prices [10] - There was a year over year decrease in the number of concerts at venues, primarily due to the absence of three Billy Joel performances from the prior year [8] Market Data and Key Metrics Changes - The company hosted over 1.5 million guests across 195 events during the quarter, reflecting strong demand for live entertainment [7] - International tourists accounted for approximately 10% of Christmas Spectacular ticket sales, while a low to mid single-digit percentage of concert ticket sales at The Garden came from international tourists [32][33] Company Strategy and Development Direction - The company is focused on opportunistically returning capital to shareholders, having repurchased approximately $40 million of Class A common stock to date this fiscal year [6][15] - The company is committed to improving the surrounding area of Penn Station and is open to considering strategic options regarding the theater [30][31] Management's Comments on Operating Environment and Future Outlook - Management noted that the overall New York Arena concert market is down compared to last year, impacting fourth-quarter expectations [20] - Despite challenges, management remains optimistic about solid AOI growth for fiscal 2025, with improving per event trends [22] Other Important Information - The company has approximately $89 million of unrestricted cash and a debt balance of approximately $613 million as of March 31 [15] - The company has $70 million remaining under its current buyback authorization [15] Q&A Session Summary Question: AOI growth guidance for the fourth quarter - Management acknowledged several factors impacting the fourth quarter, including a tough comparison to last year due to fewer concerts and playoff games [20][21] Question: Concert bookings for 2026 - Management indicated positive signs for concert bookings in fiscal 2026, with substantial visibility and potential for record-setting concerts at The Garden [26][27] Question: Penn Station project and theater sale - Management confirmed ongoing commitment to improving Penn Station and surrounding areas, with no further updates on the theater sale [30][31] Question: Christmas Spectacular and international tourism exposure - Management estimated that international tourists accounted for about 10% of Christmas ticket sales and a low to mid single-digit percentage of concert sales [32][33] Question: Growth drivers for the upcoming Christmas season - Management sees growth potential through more shows and higher average ticket yields, with advanced ticket sales pacing up over 60% in gross ticket revenue [37][38] Question: Capital returns moving forward - Management reiterated three main priorities for capital allocation: maintaining a strong balance sheet, flexibility for investments, and opportunistically returning capital to shareholders [43][44]