MSG Entertainment Reports Q2 Fiscal 2025 Results with Revenue Increase but Declining Net Income

Madison Square Garden Entertainment Corp. (MSG Entertainment) reported its financial results for the second quarter of fiscal year 2025, ending December 31, 2024, revealing total revenues of $407.4 million, a 1.2% increase from $402.7 million in the same period last year. The company’s net income for the quarter was $75.9 million, a decline of 60.6% compared to $125.2 million in the prior year. For the six-month period, total revenues reached $546.1 million, slightly up from $544.9 million, while net income decreased to $56.6 million from $74.6 million.

The financial performance reflects a mixed landscape, with revenues from entertainment offerings remaining stable at $318.3 million, while food, beverage, and merchandise revenues increased to $59.3 million from $58.8 million. Notably, arena license fees and other leasing revenue rose to $29.8 million, up from $25.6 million, driven by increased activity from the New York Knicks and Rangers. However, the overall decline in net income was attributed to higher selling, general, and administrative expenses, which rose to $57.2 million from $48.4 million, largely due to increased employee compensation and executive management transition costs.

In terms of operational metrics, MSG Entertainment reported a total of 200 performances of the Christmas Spectacular during the holiday season, generating higher ticket-related revenue. The company also noted a shift in event types at The Garden, with a decrease in concerts leading to lower per-concert revenues. The company’s total assets increased to $1.59 billion from $1.55 billion, while total liabilities remained relatively stable at $1.58 billion. The company’s equity improved to $10.3 million, a significant recovery from a deficit of $23.2 million in the previous period.

Looking ahead, MSG Entertainment anticipates continued revenue growth driven by the popularity of its events and strategic partnerships, particularly with MSG Sports. The company remains focused on enhancing its operational efficiency and managing costs effectively. The outlook for the remainder of the fiscal year suggests that the company expects to leverage its iconic venues and marquee entertainment content to attract diverse audiences, despite potential economic headwinds. The company’s management emphasized the importance of maintaining liquidity, with cash and cash equivalents totaling $54.9 million as of December 31, 2024, alongside available borrowing capacity under its credit facilities.