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Mar 31, 2020
Sphere Entertainment Co 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.
Sphere Entertainment Co
Sphere Entertainment Co
Forward Guidance
MSG Entertainment faces uncertainty due to COVID-19, which has led to venue closures and event cancellations, impacting revenue and construction projects.