Square Garden (MSG
312.91, +3.05) trade higher by 1.0% after the company beat quarterly
The self-appointed "World's Most Famous Arena" reported a slimmer than expected fourth quarter loss of $1.94 per share on a 4.1% year/year increase in revenue to $318.00 mln, which was also ahead of expectations.
MSG Entertainment revenue grew 47.4% year/year to $185.60 mln while MSG Sports revenue fell 26.2% to $132.50 mln.
Operating loss narrowed to $45.39 mln from $92.47 mln one year ago. Adjusted operating loss improved to $2.50 mln from $43.60 mln one year ago.
MSG Entertainment revenue growth was due to higher event-related revenue and a full quarter of results from the TAO Group, which owns, operates, and develops restaurants and nightclubs. Event-related revenue growth was fueled by higher sales at the Garden, the Forum, and Radio City Music Hall.
MSG Sports revenue declined due to the lack of playoff revenue and lower league distributions, including the absence of $15.00 mln in non-recurring NHL and NBA distributions. Lower sales of regular-season professional sports tickets, concession, and merchandise also contributed to the overall decline. The decline in revenue was partially offset by higher sponsorship and signage revenue, higher fees from local media rights, and suite rental fee revenue.
MSG is currently in the early stages of developing live event venues in Las Vegas and London under the name MSG Sphere. The Las Vegas location is expected to open in 2020 while the planning application for the London location is expected to be submitted by the end of this year.
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