Madison Square Garden Clocks 24% Revenue Growth In Q2; Updates On Proposed Spin-Off & Employee Downsizing - Madison Square Garden (NYSE:MSGE)

Madison Square Garden Entertainment Corp MSGE reported second-quarter FY23 revenue growth of 24% year-on-year to $642.2 million, beating the consensus of $601.5 million.
Tao Group Hospitality segment generated revenues of $136 million, up 16% Y/Y. MSG Networks generated total revenues of $158.9 million, down 1% Y/Y.
Entertainment segment revenues surged 44% Y/Y to $356.5 million.
Total adjusted operating income was $124.1 million, up 63% Y/Y. Adjusted EPS of $2.34 beat the consensus of $1.14.
Madison Square Garden held $553.7 million in cash and equivalents.
Executive Chairman and CEO James L. Dolan said, "Our fiscal second quarter results reflect ongoing operating momentum across our portfolio of live experiences. With our proposed spin-off expected to be completed by the end of March, and the anticipated opening of MSG Sphere in Las Vegas in September, we remain confident that the Company is well-positioned to drive long-term shareholder value."
In addition, the company has implemented a cost reduction program after completing a comprehensive strategic review of its businesses and identifying several efficiencies in the Entertainment and MSG Networks segments. This included targeted headcount reductions, which resulted in a total Company restructuring charge of $13.7 million in the fiscal 2023 second quarter, and other non-labor related cost-saving initiatives.
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Price Action: MSGE shares traded higher by 8.05% at $57.65 on the last check Thursday.

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