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Mar 31, 2021
Sphere Entertainment Co Q3 2021 Earnings Report
Reported financial results for the fiscal third quarter ended March 31, 2021.
Key Takeaways
Madison Square Garden Entertainment Corp. reported revenues of $43.1 million, a decrease of $138.8 million compared to the prior year quarter, with an operating loss of $108.6 million and an adjusted operating loss of $69.4 million.
Capacity restrictions continued to ease in the Company’s markets.
The Company welcomed fans back to Madison Square Garden Arena for New York Knicks and New York Rangers home games at 10% capacity.
MSG Entertainment announced plans to acquire MSG Networks in an all-stock, fixed exchange ratio transaction.
Tao Group Hospitality announced that it acquired Hakkasan Group utilizing equity from one of Tao Group Hospitality’s subsidiaries.
Revenue by Segment
Forward Guidance
The proposed transaction would create a leading entertainment and media company and deliver numerous strategic and financial benefits.
Positive Outlook
- The combined company would be well positioned to capitalize on the significant revenue opportunity related to the expansion of legalized mobile sports gaming in its market.
- The new company would also be able to more efficiently utilize MSG Entertainment’s approximately $350 million federal net operating loss as of March 31, 2021 and future bonus depreciation related to MSG Sphere at The Venetian to offset the taxable income of all of its businesses, including MSG Networks, which is a full cash taxpayer.
- The combined company’s enhanced financial flexibility would better position it to pursue current and future growth initiatives across both entertainment and media, including its planned state-of-the-art MSG Sphere venue in Las Vegas.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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