Madison Square Garden Sports' Topline Climbs Amid Higher Ticket Sales, Yet Earnings Fall Short

Zinger Key Points
  • Madison Square Garden Sports' Q3 revenue hits $429.95M, up 12% YOY, driven by increased ticket, suite, and merchandise sales.
  • Despite revenue boost, the company misses EPS estimates with $1.57 vs. expected $2.60.

Madison Square Garden Sports Corp MSGS reported fiscal third-quarter 2024 revenue of $429.95 million, exceeding the Wall Street analyst estimate of $420.74 million. Revenue grew by 12% year over year.

This increase was primarily due to higher ticket-related revenues, suite revenues, food, beverage and merchandise sales, local media rights fees, and revenues from league distributions.

The New York Knicks basketball team played five more regular-season home games at The Garden arena in the current year than in the prior year.

Quarterly earnings per share totaled $1.57, missing the analyst consensus estimate of $2.60.

Madison Square reported an adjusted operating income of $88.7 million, up by 3% year over year, primarily due to the increase in revenues. 

The ticket-related revenues increased by $29.9 million compared to the prior year period, primarily due to the Knicks playing additional games at The Garden and the higher average Knicks and New York Rangers hockey team per-game revenue.

Suite revenues increased by $10.9 million compared to the prior year. Food, beverage, and merchandise sales increased by $4.3 million compared to the preceding year’s period, primarily due to higher average per-game revenue.

Local media rights fees increased by $1.3 million compared to the prior year, primarily due to contractual rate increases. 

The company held $44.7 million in cash and equivalents as of March 31, 2024.

Madison Square Garden Sports stock lost 10% in the past 12 months. Investors can gain exposure to the stock via Invesco S&P SmallCap Utilities & Communication Services ETF PSCU and ETC 6 Meridian Small Cap Equity ETF SIXS.

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MSGS Price Action: Madison Square Garden Sports shares are trading lower by 1.19% to $184.94 on the last check Thursday.

Photo: Pabkov via Shutterstock

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