Photo Credit: Chris Appano
Madison Square Garden revenues double during the latest fiscal year — but operating losses top $100 million.
Madison Square Garden Entertainment reported financial results for the latest fiscal year that ended on June 30, 2022. The fourth quarter was highlighted by an expansive calendar of events at the company’s performance venues, resulting in impressive revenue gains compared with the previous year. That said, the company reports increasing operating losses this year.
The company reported overall revenues of $1.7 billion compared to revenues of $814.2 million the year prior. Additionally, the company had an operating loss of $102.7 million with an adjusted operating income of $133.6 million this year, compared to an operating loss of 188.2 million and adjusted operating income of $40.2 million last year.
“The past year demonstrated the resiliency of our business and the robust demand for our portfolio of live experiences,” says James L. Dolan, MSG Entertainment Executive Chairman and CEO. “We continue to make significant progress on the construction of MSG Sphere in Las Vegas, which remains on track to open in the second half of calendar 2023. We are also now exploring a potential separation of our live entertainment and MSG Networks businesses from MSG Sphere and Tao Group Hospitality, which we believe would best position the two companies to drive long-term value for shareholders.”
The company’s entertainment sector generated revenues of $179 million for the fourth fiscal quarter of 2022 — an increase of $147.9 million compared to the same period last year.
Event-related revenues increased by $75.5 million, venue-related sponsorship and signage increased by $14.7 million, and suite license fee revenues increased by $6.8 million. All increases are primarily due to the return of live events at the company’s performance venues during the year compared to the limited events the year prior due to COVID-19 restrictions.
The company’s operating income increased from $4.6 million to $7.5 million, with adjusted operating income increasing by $6.4 million to $17 million compared to the prior year’s quarter. This results primarily from an increase in revenues, offset partially by higher direct operating expenses and higher selling, general and administrative expenses.