On November 2, 2023, Madison Square Garden Sports Corp. (MSGS, Financial) released its financial results for the fiscal first quarter ended September 30, 2023. The company reported a significant increase in revenues, reaching $43.0 million, a 79% increase compared to the prior year period. The operating loss improved by 59%, standing at $14.8 million, while the adjusted operating loss improved by 64%, standing at $10.0 million.
Financial Highlights
The company's strong financial performance was driven by the continued positive operating momentum across its business. The combined season ticket renewal rate for the New York Knicks and New York Rangers exceeded 94%, which is on a larger renewable base than the prior year. The company also reported robust renewal and new sales activity in suites and sponsorships, signing a number of new marketing partners leading into the seasons.
Income Statement Summary
Direct operating expenses decreased by 4% compared to the prior year period, standing at $3.5 million. Selling, general and administrative expenses also decreased by 3%, reaching $53.6 million. The net loss attributable to Madison Square Garden Sports Corp.'s stockholders was $18.8 million, with a basic loss per common share of $0.79.
Balance Sheet and Cash Flow Statement Summary
As of September 30, 2023, the company reported total assets of $1.36 billion, with total liabilities standing at $1.72 billion. Total equity was reported at -$358.5 million. Cash and cash equivalents stood at $51.2 million.
Executive Commentary
Madison Square Garden Sports Corp. Executive Chairman James L. Dolan commented on the results, saying,
We are pleased with the positive momentum we have seen in our business so far this fiscal year. We are confident that the enduring popularity of our teams and strength of our operations has us well-positioned to drive long-term shareholder value."
Madison Square Garden Sports Corp. is a leading professional sports company, with a collection of assets that includes the New York Knicks (NBA) and the New York Rangers (NHL), as well as two development league teams – the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL).
Explore the complete 8-K earnings release (here) from Madison Square Garden Sports Corp for further details.
