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Sep 30, 2020
MSG Sports Q1 2021 Earnings Report
Reported financial results for the fiscal first quarter, reflecting the impact of the COVID-19 pandemic. The company completed a $600 million debt refinancing and extended its maturity schedule.
Key Takeaways
Madison Square Garden Sports Corp. reported a revenue increase of 14% compared to the prior year period. The company also reported an improvement in operating loss and adjusted operating loss, driven by higher revenues and a decrease in selling, general and administrative expenses.
Revenues increased by $7.2 million, or 14%, compared to the prior year period, driven by an increase in league distribution revenues and local media rights fees from MSG Networks.
Operating loss improved by $31.9 million, or 54%, and adjusted operating loss improved by $22.9 million, or 56%, both as compared to the prior year period.
Direct operating expenses increased by $21.4 million, or 116%, as compared with the prior year period, due to the recognition of player compensation and revenue sharing expenses.
Completed a $600 million debt refinancing, enhancing its financial flexibility through an extended maturity schedule and an increase in borrowing capacity.
Forward Guidance
The Company looks forward to the start of the 2020-21 NBA and NHL seasons and are excited about the future.
Positive Outlook
- New leadership for the Knicks.
- Addition of the number one overall draft pick for the Rangers.
- Strengthened balance sheet.
- Uniquely positioned to create long-term value for shareholders.
- Extended maturity schedule
Challenges Ahead
- Navigating through this period of uncertainty.
- Impact of the COVID-19 pandemic.
- Lower sponsorship and signage revenues.
- Absence of suite license fee revenue.
- Decreases in other league distributions.
Historical Earnings Impact
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