Madison Square Garden Entertainment Corp. (MSGE) Bundle
A Brief History of Madison Square Garden Entertainment Corp.
Company Formation and Structure
Madison Square Garden Entertainment Corp. (MSG Entertainment) was formed as part of a corporate restructuring that culminated in its distribution from Sphere Entertainment Co. on April 20, 2023. Following this distribution, MSG Entertainment became an independent publicly traded company on April 21, 2023.
Financial Performance
As of September 30, 2024, MSG Entertainment reported total revenues of $138.7 million for the three months ended September 30, 2024, a decrease from $142.2 million in the same period in 2023. The breakdown of revenues includes:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Entertainment Offerings | $115,081 | $116,505 |
| Food, Beverage, and Merchandise | $18,975 | $23,261 |
| Arena License Fees and Other Leasing Revenue | $4,658 | $2,446 |
| Total Revenues | $138,714 | $142,212 |
Operating Loss and Net Loss
The company reported an operating loss of $18.5 million for the three months ended September 30, 2024, compared to an operating loss of $33.4 million in the prior year. The net loss attributable to MSG Entertainment's stockholders for the same period was $19.3 million, significantly improved from a net loss of $50.7 million in Q3 2023.
Cash Flow Analysis
For the three months ended September 30, 2024, MSG Entertainment experienced net cash used in operating activities of $27.4 million, a significant decrease from the net cash provided by operating activities of $1.4 million in the same quarter of 2023. The cash flow metrics for the periods are as follows:
| Cash Flow Activity | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $(27,359) | $1,378 |
| Net Cash Used in Investing Activities | $(6,690) | $(55,490) |
| Net Cash Provided by Financing Activities | $38,107 | $9,273 |
| Net Increase (Decrease) in Cash | $4,058 | $(44,839) |
Balance Sheet Highlights
As of September 30, 2024, MSG Entertainment reported total assets of $1.61 billion, with total liabilities amounting to $1.66 billion. The breakdown of key balance sheet items is as follows:
| Balance Sheet Item | As of September 30, 2024 (in thousands) | As of June 30, 2024 (in thousands) |
|---|---|---|
| Cash and Cash Equivalents | $37,307 | $33,255 |
| Total Current Assets | $260,396 | $219,084 |
| Total Assets | $1,610,327 | $1,552,707 |
| Total Current Liabilities | $521,214 | $505,823 |
| Total Liabilities | $1,659,025 | $1,575,872 |
Shareholder Information
As of September 30, 2024, members of the Dolan family collectively owned 100% of the company's outstanding Class B Common Stock and approximately 4.1% of the outstanding Class A Common Stock, representing roughly 63.6% of the aggregate voting power of the company's common stock.
Future Outlook
MSG Entertainment continues to capitalize on its live entertainment expertise and iconic venues, positioning itself for recovery and growth in the post-pandemic environment. The company anticipates increased revenues from its seasonal events, particularly the Christmas Spectacular, which typically generates significant income in the latter half of the fiscal year.
A Who Owns Madison Square Garden Entertainment Corp. (MSGE)
Ownership Structure
As of 2024, Madison Square Garden Entertainment Corp. (MSGE) has a complex ownership structure that includes both public and private shareholders.
Major Shareholders
The following table summarizes the major shareholders of MSGE, including their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| Sphere Entertainment Co. | 66.1% | Publicly Traded |
| Institutional Investors | 15.4% | Various |
| Individual Investors | 18.5% | Publicly Traded |
Share Class Structure
MSGE has two classes of common stock:
- Class A Common Stock: 120,000 shares authorized, 45,958 shares issued as of September 30, 2024.
- Class B Common Stock: 30,000 shares authorized, 6,867 shares issued as of September 30, 2024.
Financial Overview
As of September 30, 2024, the financial metrics of MSGE are as follows:
| Metric | Value |
|---|---|
| Total Assets | $1,610,327,000 |
| Total Liabilities | $1,659,025,000 |
| Total Deficit | ($48,698,000) |
| Net Loss for Q3 2024 | ($19,321,000) |
| Cash and Cash Equivalents | $37,613,000 |
Debt Obligations
As of September 30, 2024, MSGE's total debt obligations are detailed below:
| Debt Type | Amount | Interest Rate |
|---|---|---|
| National Properties Facilities | $676,563,000 | 7.45% |
| Revolving Credit Facility | $150,000,000 | Variable (based on SOFR) |
Recent Financial Performance
For the three months ended September 30, 2024, MSGE reported:
| Revenue Source | Amount |
|---|---|
| Revenues from Entertainment Offerings | $115,081,000 |
| Food, Beverage, and Merchandise Revenues | $18,975,000 |
| Arena License Fees and Other Leasing Revenue | $4,658,000 |
| Total Revenues | $138,714,000 |
Madison Square Garden Entertainment Corp. (MSGE) Mission Statement
Madison Square Garden Entertainment Corp. (MSGE) positions itself as a premier live entertainment company, focusing on delivering exceptional experiences through its iconic venues and marquee entertainment offerings. The mission emphasizes excellence, innovation, and the creation of deep connections with diverse audiences. The company operates multiple renowned venues including Madison Square Garden, Radio City Music Hall, and the Beacon Theatre.
Financial Overview
As of the third quarter of fiscal year 2024, MSGE reported the following financial metrics:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change |
|---|---|---|---|
| Total Revenues | $138,714 | $142,212 | $(3,498) (-2%) |
| Net Loss | $(19,321) | $(50,671) | $31,350 (62%) |
| Operating Loss | $(18,482) | $(33,425) | $14,943 (45%) |
| Basic and Diluted Loss per Share | $(0.40) | $(1.00) | $0.60 (60%) |
| Cash, Cash Equivalents, and Restricted Cash | $37,613 | $39,516 | $(1,903) (-5%) |
Revenue Breakdown
The revenue streams for MSGE for the three months ending September 30, 2024, are categorized as follows:
| Revenue Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change |
|---|---|---|---|
| Revenues from Entertainment Offerings | $115,081 | $116,505 | $(1,424) (-1%) |
| Food, Beverage, and Merchandise Revenues | $18,975 | $23,261 | $(4,286) (-18%) |
| Arena License Fees and Other Leasing Revenue | $4,658 | $2,446 | $2,212 (90%) |
Cost Structure
Direct operating expenses for the three months ended September 30, 2024, are detailed below:
| Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change |
|---|---|---|---|
| Total Direct Operating Expenses | $(97,709) | $(101,677) | $3,968 (4%) |
| Selling, General, and Administrative Expenses | $(45,746) | $(48,822) | $3,076 (6%) |
| Depreciation and Amortization | $(13,781) | $(13,585) | $(196) (1%) |
Debt and Liquidity Position
As of September 30, 2024, MSGE reported a total debt outstanding of approximately $676,563, with an available borrowing capacity under its National Properties Revolving Credit Facility of $76,174. The liquidity position reflects the company’s ability to manage its financial obligations effectively amid varying market conditions.
Stock Performance
The stock performance metrics of MSGE as of September 30, 2024, are as follows:
| Metric | Value |
|---|---|
| Class A Common Stock Outstanding | 45,958 shares |
| Class B Common Stock Outstanding | 6,867 shares |
| Total Voting Power | 63.6% |
As of September 30, 2024, the company also had approximately $110,000 remaining available for stock repurchases under its authorized program.
How Madison Square Garden Entertainment Corp. (MSGE) Works
Overview of Operations
Madison Square Garden Entertainment Corp. (MSGE) operates as a live entertainment company with a diverse portfolio of venues and events. The company manages iconic locations such as Madison Square Garden, Radio City Music Hall, and the Beacon Theatre, providing a variety of live shows, concerts, and sporting events.
Financial Performance
For the three months ended September 30, 2024, MSGE reported the following financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $138,714,000 | $142,212,000 | $(3,498,000) | (2%) |
| Net Loss | $(19,321,000) | $(50,671,000) | $31,350,000 | 62% |
| Loss per Share | $(0.40) | $(1.00) | $0.60 | 60% |
| Operating Loss | $(18,482,000) | $(33,425,000) | $14,943,000 | 45% |
Revenue Breakdown
Revenue for the three months ended September 30, 2024, can be categorized as follows:
| Revenue Source | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Entertainment Offerings | $115,081,000 | $116,505,000 | $(1,424,000) | (1%) |
| Food, Beverage, and Merchandise | $18,975,000 | $23,261,000 | $(4,286,000) | (18%) |
| Arena License Fees and Other Leasing Revenue | $4,658,000 | $2,446,000 | $2,212,000 | 90% |
Operating Expenses
The company’s direct operating expenses for the same period were:
| Expense Category | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Direct Operating Expenses | $(97,709,000) | $(101,677,000) | $3,968,000 | 4% |
| Selling, General, and Administrative Expenses | $(45,746,000) | $(48,822,000) | $3,076,000 | 6% |
| Depreciation and Amortization | $(13,781,000) | $(13,585,000) | $(196,000) | (1%) |
Cash Flow
For the three-month period, cash flow activities included:
| Cash Flow Activity | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $(27,359,000) | $1,378,000 |
| Net Cash Used in Investing Activities | $(6,690,000) | $(55,490,000) |
| Net Cash Provided by Financing Activities | $38,107,000 | $9,273,000 |
Debt and Liquidity
As of September 30, 2024, MSGE reported the following regarding its debt and liquidity:
| Metric | Amount |
|---|---|
| Total Debt Outstanding | $676,563,000 |
| Available Borrowing Capacity | $76,174,000 |
| Cash and Cash Equivalents | $37,307,000 |
Stock Information
As of September 30, 2024, the company had:
| Stock Information | Amount |
|---|---|
| Weighted-Average Shares Outstanding (Basic and Diluted) | 48,217,000 |
| Treasury Stock at Cost | $(140,512,000) |
Conclusion on Financial Health
The financial data suggests that MSGE is navigating a challenging environment with a significant reduction in net loss and operational improvements compared to the previous year.
How Madison Square Garden Entertainment Corp. (MSGE) Makes Money
Revenue Streams
Madison Square Garden Entertainment Corp. generates revenue through three primary categories:
- Revenues from entertainment offerings
- Food, beverage, and merchandise revenues
- Arena license fees and other leasing revenues
Financial Performance Overview
For the three months ended September 30, 2024, MSGE reported the following revenues:
| Revenue Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Revenues from entertainment offerings | $115,081 | $116,505 | $(1,424) | (1)% |
| Food, beverage, and merchandise revenues | $18,975 | $23,261 | $(4,286) | (18)% |
| Arena license fees and other leasing revenue | $4,658 | $2,446 | $2,212 | 90% |
| Total revenues | $138,714 | $142,212 | $(3,498) | (2)% |
Breakdown of Revenue Sources
The detailed breakdown of revenues from contracts with customers for the same period is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Ticketing and venue license fee revenues | $70,206 | $71,729 |
| Sponsorship and signage, suite, and advertising commission revenues | $42,890 | $43,336 |
| Food, beverage, and merchandise revenues | $18,975 | $23,261 |
| Other | $1,985 | $1,440 |
| Total revenues from contracts with customers | $134,056 | $139,766 |
Operating Expenses
Direct operating expenses for the three months ended September 30, 2024, were as follows:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Entertainment offerings, arena license fees, and other leasing direct operating expenses | $(86,466) | $(90,559) | $4,093 | 5% |
| Food, beverage, and merchandise direct operating expenses | $(11,243) | $(11,118) | $(125) | (1)% |
| Total direct operating expenses | $(97,709) | $(101,677) | $3,968 | 4% |
Net Loss and Earnings
For the three months ended September 30, 2024, MSGE reported:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating loss | $(18,482) | $(33,425) |
| Net loss attributable to MSG Entertainment’s stockholders | $(19,321) | $(50,671) |
| Loss per share attributable to MSG Entertainment’s stockholders | $(0.40) | $(1.00) |
Liquidity and Financial Position
As of September 30, 2024, the financial position of MSGE is as follows:
| Liquidity Metric | Amount (in thousands) |
|---|---|
| Cash and cash equivalents | $37,307 |
| Restricted cash | $306 |
| Total cash, cash equivalents, and restricted cash | $37,613 |
| Total debt outstanding | $676,563 |
| Available borrowing capacity | $76,174 |
Conclusion
Madison Square Garden Entertainment Corp. leverages its iconic venues and diverse entertainment offerings to generate revenue, while managing its operating expenses to navigate financial challenges.
Madison Square Garden Entertainment Corp. (MSGE) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Madison Square Garden Entertainment Corp. (MSGE) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Madison Square Garden Entertainment Corp. (MSGE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Madison Square Garden Entertainment Corp. (MSGE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.