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Mar 31, 2021
MSG Sports Q3 2021 Earnings Report
MSG Sports' financial performance was affected by fan attendance restrictions and compressed timing of NBA and NHL regular seasons, resulting in a revenue decrease compared to the prior year period.
Key Takeaways
Madison Square Garden Sports Corp. reported a decrease in revenues and operating income for the fiscal third quarter ended March 31, 2021, as compared to the prior year period. Revenues were $183.0 million, a decrease of $84.6 million. Operating income was $8.1 million, a decrease of $2.5 million.
Revenues decreased primarily due to declines in ticket-related revenues, suite license fee revenue, and food, beverage, and merchandise sales due to capacity restrictions.
Operating income decreased due to the decrease in revenues, largely offset by lower selling, general, and administrative expenses and direct operating expenses.
Adjusted operating income increased primarily as a result of lower direct operating expenses and selling, general and administrative expenses, largely offset by the decrease in revenues.
The company had $289.1 million of liquidity as of March 31, 2021, including cash and cash equivalents, and borrowing capacity under credit facilities.
MSG Sports
MSG Sports
Forward Guidance
The company did not provide specific forward guidance but noted positive momentum in the industry and the potential for increased fan engagement and sponsorship opportunities.
Positive Outlook
- Grateful for the overwhelming support from Knicks and Rangers fans this season.
- Pleased with fan response to our 2021-22 season ticket outreach.
- Importance and value of live sports content reaffirmed with the NHL’s recent national media rights agreements.
- Recent legalization of mobile sports gaming in New York presents a meaningful opportunity for fan engagement.
- Mobile sports gaming in New York will provide sponsorship opportunities and increase the value of our teams.