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Mar 31, 2020

MSG Spinco Q3 2020 Earnings Report

Reported financial results for the fiscal third quarter as a standalone company, following its spin-off from Madison Square Garden Sports Corp.

Key Takeaways

MSG Entertainment reported a 20% decrease in revenue to $199.9 million and an operating loss of $145.5 million, which includes $102.2 million in impairment charges related to Tao Group Hospitality, due to the COVID-19 pandemic and venue closures.

Revenues decreased by 20% compared to the prior year period, primarily due to lower event-related revenues and the temporary closure of venues due to COVID-19.

Operating loss increased by $126.9 million to $145.5 million, including $102.2 million in non-cash impairment charges related to Tao Group Hospitality.

Adjusted operating income decreased by $25.2 million to a loss of $7.2 million.

The COVID-19 pandemic led to the temporary closure of MSG Entertainment’s performance venues in March 2020, with virtually all events postponed or canceled through June.

Total Revenue
$182M
Previous year: $250M
-27.2%
EPS
-$5.52
Previous year: -$0.497
+1010.2%
Adjusted Operating Income (Loss)
-$7.23M
Previous year: $17.9M
-140.3%
Gross Profit
$67.1M
Previous year: $91.3M
-26.6%
Cash and Equivalents
$1B
Free Cash Flow
-$85.4M
Total Assets
$3.83B

MSG Spinco

MSG Spinco

MSG Spinco Revenue by Segment

Forward Guidance

MSG Entertainment faces uncertainty due to COVID-19, which has led to venue closures and event cancellations, impacting revenue and construction projects.