NEW YORK (CelebrityAccess) – Madison Square Garden Entertainment Corp announced the financial results for the company’s fourth fiscal quarter of 2023 as well as their full year results.
For MSGE’s fourth quarter, the company saw a decline in revenue of 17%, falling from $178.3m in Q4 2022 to $147.9 during the same period this year. Adjusted operating income fell as well during the quarter, sliding $19 million during the quarter last year to $900,000 in the red this year.
According to MSGE, the declines were driven in part by declines in arena licensing and the timing of the NHL season, which saw eight fewer regular season games at the Madison Square Garden Arena.
The company also reported a decline in advertising revenue with sales commissions falling by $3.9 million during the quarter.
However, the overall decrease in revenues during Q4 was partially offset by an increase in event-related revenues of $8.1 million.
Despite the gloomy quarter, MSGE reported a sharp increase in revenue and AOI for their full year. According to MSGE, revenue was up by %30 percent to $851.5m and AOI more than doubled, rising from 95.9m in 2022 to $175 million this year.
“Throughout fiscal 2023, we saw robust demand for our portfolio of live entertainment offerings. Looking ahead, we see this momentum carrying into fiscal 2024 and believe we are well positioned to generate ongoing growth and value creation for shareholders,” stated Executive Chairman and CEO James L. Dolan.
According to MSGE, the results were buoyed by the spin-off of much of the company’s entertainment businesses from the Madison Square Garden Company in April, including the high-profile Sphere Entertainment.
For the fiscal 2023 fourth quarter, the Sphere segment reported that revenue improved slightly, from $600,000 to $700,000, but the segment recorded an overall operating loss of $59.8m, up sharply from the $35.4m reported in 2022.
Sphere Entertainment attributed the headwinds to the company’s transition services agreement with MSG Entertainment, higher employee compensation and related benefits, and other cost increases.
“Our Company completed a number of transactions this past year, including the live entertainment spin-off, that have supported our growth plans. As we look ahead to our next chapter with the opening of Sphere in Las Vegas, we are confident that our Company is well-positioned to generate long-term value for shareholders,” Dolan noted.
