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Dec 31, 2020
MSG Sports Q2 2021 Earnings Report
MSG Sports' financial performance was significantly impacted by the COVID-19 pandemic, with revenue decreasing substantially due to the absence of fans and the timing of the NBA and NHL seasons. The company reported an operating loss and an adjusted operating loss compared to the prior year, but remained confident in its fundamentals and balance sheet.
Key Takeaways
Madison Square Garden Sports Corp. reported a significant decrease in revenue for the fiscal second quarter ended December 31, 2020, due to the COVID-19 pandemic's impact on NBA and NHL seasons and fan attendance. The company experienced a substantial decline in revenues and reported an operating loss of $38.4 million.
Revenues decreased by 90% to $28.8 million compared to the prior year period.
Operating loss was $38.4 million, compared to an operating loss of $0.2 million in the prior year period.
Adjusted operating loss was $19.0 million, compared to adjusted operating income of $19.0 million in the prior year period.
The decrease in revenue was primarily driven by the absence of pre/regular season ticket-related revenues and suite license fee revenue as well as a decrease in local media rights fees from MSG Networks, league distribution revenues, and sponsorship and signage revenues.
MSG Sports
MSG Sports
Forward Guidance
The company is excited to have the Knicks and Rangers competing again and looks forward to safely welcoming fans back to The Garden, remaining confident in its business fundamentals and ability to create long-term shareholder value.
Positive Outlook
- Excited to have the Knicks and Rangers competing again
- Looking forward to the time when we can safely welcome fans back to The Garden
- Confident in the fundamentals of our business
- Confident in the strength of our balance sheet
- Well-positioned to create long-term shareholder value