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]