MSGS - Earnings call transcript Q4 2022 | Madison Square Garden Sports Corp.

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Operator

Good morning. Thank you for standing by, and welcome to the Madison Square Garden Sports Corp. Fiscal 2022 Fourth Quarter and Year-End Earnings Conference Call. . At this time, all participants are in a listen-only mode. there a remarks, session. speaker’s the will question-and-answer be After [Operator Instructions]. like I call to over now to the Relations. turn would Investor Ari Danes, go Please ahead.

Ari Danes

Fiscal Good to Year-End Thank and Conference XXXX Sports Earnings operator. and Fourth you, Call. Quarter morning MSG welcome

prepared EVP, begin Treasurer. our CEO, update we with for Victoria financial remarks, company's This results will the After by followed our morning's will call with Our President be up Lustgarten Chief a open this and the and operations. Andy questions. our Financial an Officer on review will Mink, of call

of non-GAAP of call. may and statements. discussed If company's the update you the of to do the today's corporate a of discussion a any not earnings over for of obligation uncertainties. filings financial statements disclaims of may section Today's operations it risks have Please and forward-looking that website. in we the call SEC measure. of operating within I'll actual a X such contain risks The available following. Reform today's of with this turn to X with take statements income materially to during note copy statements provide company to On refer reconciliation the or the meaning AOI, release, And Pages is of the any and income be our operating forward-looking not Please a earnings consolidated future statements or cause to now Andy. adjusted release, that Litigation Investors involve from discussion results in guarantees forward-looking forward-looking and Private could results Securities XXXX. that Any of performance the differ those uncertainties Act and are

Andy Lustgarten

you for morning, joining us. Good and thank

adjusted record are year and back look XXXX, over fiscal income by $XXX million. results year the we of As we $XXX than financial with had, million highlighted operating of more incredibly proud revenues full we of on

and last media sales line full the exceeded sponsorship a XXXX, to merchandise results is from year This night franchises, nick tickets, suites, true demand packed three regular Garden every incredible for fans. The night our and was and full our to pandemic of testament years. with season rights. fiscal to and for in major In the revenue after especially in addition, prior beverage our Rangers the enthusiasm first food, iconic

But low thrilled clearly important are to the back Delta travel, international we perfect New and We the in on be that year from very far restrictions we our these through impact And despite it's yet, and past office the our Omicron remember rates person. occupancy supporting operated over COVID-XX successfully of in both variance. uncertainties. headwinds, including teams York to which the in business environment was also navigated these

our renowned and ticketing what After business, results we ownership including record Knicks is excluding grow These value past presence, tailored our inventory through new new international social business offerings teams increasing level merchandising financial seating, of which focus see sponsorship to such lead courtside both our keen valuable and at And XXXX. in operate, in our updating We in for as infrastructure we're to the in way to processes, confident years revenue year-over-year stronger last as with carry Furthermore, will the have drive of used more we already renewal. And come and we density across could enhance our national near opportunities hospitality our patches for in fiscal lines premium business. including ways a business the knowing long-term. playoffs, numerous on the the executing we to we media include our the focus look growth nimble place our remain sports strategies long-term most as and ahead, shareholders. growing drive positions our growth organization jersey upside in of products, strategies consumer and on us to deliver sponsorship well and see and emerging two new as our new seeing content, including all this deals impact that creation up the poised and and drives forward. year, two professional key and our further rights of momentum from through

playoff franchises. positioning multiple ahead. core to can the talented XXXX with highest of the now finals. for per over Rangers the Stanley game end round, those Let's the traffics a was gate for you Knicks young in And marked The impact most also to number success of which for first under included the of results. Conference amassed today's XXXX, one see Finals has team the of the run. of Cup This by XXXX, since developing years the in ever the which season seven team years, the any a a team's years. Knicks, turn Eastern further any trip including players have in The generated NHL post-season for Both substantial back contract thrilling revenues next Rangers,

Play Looking signs to all know positive pointing begin fans ahead, our continued we momentum for business. are to ready for our with

of XXXX anticipate to to the example, the the approximately versus We the and an merchandise XX% well courtside we've with remain season combined they percentage providing We spending, our new Knicks season special with increase in of momentum Arena showed and desire new sales demonstrated of in the effectiveness engage revenue. enthusiasm Rangers Henrik per just technologies teams also results all increased hitting night reconfigured their beverage seats food, coupled Ranger the ticket for outside at Garden. and that have season that packages season the on as fans floor ticket cap process, sales members it They retirement seasons extends Lundqvist will highs strong. ticket from renewal solid Knicks our has with the our season layout during prices, their beyond growth climbed For platform. seen, new in that at it and a as tickets drive the rate introduction Garden. hands while XXXX, fiscal in in average double-digit Rangers saw levels The and XXXX to ticket increases

both channels, continue with net as social we over also focus creates our followers for grow our marketing on across creating The and partners. to additional connect in million this media media example, year, content For directly valuable social team’s inventory new added growth our we one compelling platforms audience. followers on to

fans We reflected across in traditional viewership strong also media. saw enthusiasm

the the A was was For series opening account the Penguins deal of round that league the watched even TBS watched NHL on season. compared season, on and the And with series XXXX since XXXX Disney Eastern the impressive making season. finals MSG and ratings for since most the evident TNT for both this national viewership take as plans. Conference XX% ratings the most season XXXX. US the Networks into stat the But XXXX. NHL's Across be Rangers local entire delivered demand raising the example, viewership to continued regular Lightning as the wasn't leagues, robust June doesn't broadcast. was average rights NBA's highest just XX% in cable media first Playoff first was And was round year simultaneously season and most stream up that XXXX, to to on record. last in since content it average premium in watched remarkable versus reported NHL's The was up new series broadcast the season Rangers limited US regular the sports the last WarnerMedia, the

global Soccer, reportedly of in the This with As we a various importance are have Indian new new which reached and Formula all agreements deal profile. have multiples prior further Premier leagues includes previously clearly as and landed which programming, viewership across the has agreements. renewal in evidence discussed, League agreements announced, X, leaders NHL's align leagues serving the been of major sports aided the the a media raising sports the live with NHL League, significant of of Apple; media further two increasing rights content. which ESPN recent crickets of weeks, rights which popularity XX-year premium with In and

won professional the the media As national we opportunity season, increase with value, the in a Disney through with XXXX, reminder, across to NBA. on US and ahead for WarnerMedia continuing the bullish and NBA's sports remain rights XXXX deals

In to slate we sports into compelling demonstrated legalization strategic key new have. includes of hospitality DraftKings our also New NHL our partnership benefit current MSG will XXXX last can that MSG successful entertaining sales confident companies mobile driving was the Anheuser-Busch with inventory, were expansion and and suites gaming patch from and as our and international suite with as process. partners will as approach its State. experience average jersey Sportsbook we'll opportunities deals with in with partnerships. the three exceeding Turning following digitally renewal the like we and partners, to a companies DasherBoards, out expansion reminding we coming we measured they and Fiscal the pre-pandemic the forming open Knicks to reengage new marketing with partners strength York swift do brands we in And categories. fiscal return the Moore our are the to BetMGM, partnership Garden. time impact suite this of games, season. and into in In team exposure highlighted Caesars leagues our be run XXXX we offer next to a Rangers as partnerships This into Entertainment, live no game our of York will year the to the are as and past New for where And reach activity, new These well record heading we well with category the the NBA ushered year, sponsorship few in our our are assets the at pandemic, the the new rates In consumers as Benjamin and premium in Kia our usage marketing of for Infosys sales in it's trying with corporate as full first months of unparalleled is companies and the a in see new our of future rate both partnerships confident market. the number driving from demonstrate level. have the results. and revenues. The continue robust expanding season, These business the as across existing whether to partnerships offerings, renewals experience outlook enhanced push saw record the a partners levels activity same of by to there we a strong Entertainment,

year the sponsorship XXXX, growth look to opportunities more to lines make expecting and to ahead. entertaining complete in coming we corporate anticipate fiscal As these with revenue and ahead in continued a we new market return,

ownership of report sales, continue latest the Sportico has We Premier Denver effects expect high the last playoffs, and NFL Football Rangers the and to from improve that new three in suite majority $X with anticipate with we Dallas whether to XX% the teams. valuation team sponsorship to transactions Since professional in since value valuations up leading This for persists League, record the consumer Cowboys $X.X last also the Broncos. published of Chelsea to billion. outstanding list includes billion, a and we see spoke, demand, positive we year's running business the team our the Bronco with sales. record in ticket, And the marquee benefits of significant sports corporate months, NFL reminded be last as from the English the or average above Club the the

see relative value recent believe untapped these continue of valuations and to currently team to examples the assets, next trades. to publication NHL NBA the eager the where stock our We’re and our of highlight

Before as fans, year, closing journey our playing take today, our to record we thank and I'd to a shareholders a moment vital drive like work partners, employees business role to to in for our highs. this

our growth we've the company XXXX With As and strategies value put I'll over us long-term strength shareholders. and our see place, our beyond, now future to building new the generate ability we our opportunities, look call confident for to in to in fiscal off we in business and of turn Victoria. leaving the that, growth existing ample the

Victoria Mink

like review will quarter. to balance discussing Thank both you, Andy, our fourth then liquidity. would by and financial results full and everyone. good I the start sheet our I year and for morning,

total revenue we operating and million of income XXXX, $XXX.X generated fiscal adjusted of million. For $XXX.X

mentioned, season record very the full see the fiscal Rangers reminder, Knicks Andy continue across as the a the the onset As XXXX to first of and high marked business; including, strong COVID-XX pleased And the financial back pandemic. we for results. with we performance; following are

Now turning quarter. to our fiscal XXXX fourth

Rangers. period mainly also Our represented playoff impact NBA well quarter games million of The they as period. affected regular which Rangers well the year. revenue the of inclusive revenues as as home of And inclusive as Event-related prior reflect more a prior you year the played XXXX year to of which the as followed $XXX.X in being seasons, total XX regular capacity and run food, results year-over-year to merchandise XXXX-XXXX ticket, as for prior by the of year timing frame strong to continue were playoff year year. and and comparability. revenues this seasons $XX.X fiscal over the shortened while reflected million, remind completed $XXX.X in for and by certain their These million. represented a the three year for games reflected sponsorship period, the quarter a demand restrictions, teams, shorter compressed beverage expenses quarter the time robust as compared Knicks resulted compared our as that the suites factors also I'd quarter, prior prior recognized in the consists than the period playoffs in certain million NHL revenues the the the the in $XX.X current revenues playoffs, result,

was which our rights period. prior deals the on revenue and in with $XX.X by national million season, and This the partially of the as this as XXXX impact the fees national the seasons and of US the due NBA's $XX.X contractual of XXXX, local the new NHL of as media to primarily media timing year began This NHL's shortened the period, at offset impact the local rights a addition, reflected beginning rate In media compressed media million NBA prior of well represented the rights decrease increases year deals. compared quarter. XXXX

operating the decreases lower the decrease in compensations period. timing expenses compared escrow in the the million the to by Seattle million, $XX with XXXX, SG&A The the primarily expense, recognized prior due personnel period lesser to the was $XX.X operating offset operating of as and the Kraken. in also income a year a due of primarily partially expenses in higher to direct a compared in offset As prior other as the was expenses levels increases an These sharing other absence extent credit and were executives of severance partially in and NHL increase fourth period included to team playoff-related direct playoff-related Adjusted return reminder, higher by as associated a both to primarily team year year of fee expenses. revenues, to SG&A season. quarter prior The a well recognition normal to expansion net in expenses. the related fiscal reflecting operating to decrease included expenses to team which revenue net compressed expenses due decrease improved lower the of XXXX

across we higher ahead, revenue fiscal look including expenses costs. we to XXXX, is AOI expect team in believe our growth lines poised to deliver also business while operations key reflect we our As league-related

Turning from end credit sheet. to the advanced senior we total $XX comprised $XXX of balance facility million million the under quarter outstanding had our of the revolving million $XXX the of debt secured and NHL. mix At

increase net compared million. of $XX.X our cash balance represented XX to balance March of of $XX.X end approximately million, a quarter $XX Our million

in Rangers June secured seeing liquidity and million all reflect debt to that, trajectory Our equivalents turn $XXX $XXX cash business. of facility. Based during of credit XX, the balances we unrestricted long-term under fiscal back repayments cash the to now and XXXX borrowing million million regards revolving heading With in under $XX $XXX will we to cash our credit to we're total of and the into call with liquidity $XX and debt with in brought Rangers the had eliminated on balances and our period, as confident outstanding million the capacity of the opportunities the which growth, over fiscal XXXX on comprised facilities. And both team's million revolving drive remain I Ari. of the facility senior momentum, paydown

Ari Danes

to Operator questions. like would Victoria. we open Thanks now for call the

Operator

question from Lightshed Partners. Instructions] And line Ross comes first from of your the [Operator Brandon

open. is line Your

Brandon Ross

that like cap your then clear high-profile And the seems betting revenue with has big this the pullback. at we've Andy, the deals way sponsorship? some any headwinds, of is part And have pretty Hey, remarks growth sports prepared industry it there rational. upside little seen it's from just here crypto your a getting there. sponsorship more especially frankly in a and Does And also. some been story MSG recently been abandoned

Andy Lustgarten

Brandon. Thanks,

a So for back take step a let's second.

So make up a talk of about when sponsorship large think crypto, you I business. part it our doesn't

in our have large partners. year, came that not very really whole a but it's new were They We strong two of last part portfolio.

I But NFT technology pretty there. more So and the I really feel I the so good space about key that about we blockchain think actually that. and think about alone, when think crypto from don't crypto, come and

I sponsorship one when we the technologies step to part and emerging back. benefit takes know lot I I business, coming what's would are of two about think blockchain. category, our of actually another There's out went have crypto that that is If of of but think back our So going book. that companies thought new that about don't no as years, a

comes betting when I years categories one in of into sports there's coming the up seen a opening the think I job this of well. the point category capitalizing. which exist we excellent ago, us about always And comes that done give is, that the leagues further But years new there's of you do done this to was And that I a a fashion. what even to or I'll betting three ago of is four on new come think you business fashion very a your out opportunity which new great job of think so to sports have either capitalize. we've into And And top way -- back always cyclicality business there's second. really have didn't that inventory,

NHL partners be the sponsorship, have think on enhanced really us that. up Jersey adding thinking opportunity opening international sponsorship about NBA which we international, to it adding the a is opening Knicks XX big the whether really new dashboards, digital side, So, allowing the really and we're Jersey

there's new inventory. new think So, to I'll into as horizon, New categories ability you CBD the marijuana and tell the legal go and now or we market. in York we New Jersey on think in are

an While being by I the leagues permitted they're see that opportunity. not could

our So, last impact only them really see so to about it's the to how great this we really got a sports it I job working We we in will full that To into that good I further with partial was go here think year year question your business and it. think three year this will done And and partners. of We think strong very in our turning future. that mention about we've very continue a think feel as year. you going portfolio. there's growth that business. good gaming part to grow we a we've out of the results

Brandon Ross

much. you Thank Great.

Operator

from next Swinburne Stanley. question of Morgan Ben the comes Your from line

line open. is Your

Ben Swinburne

from next can we of but of the months I in in the the there's XX, see think we outlook your a about I you spending crystal decelerate. know as a One Thank the to hear sort lot voice, clearly a elevated or consumer you. do. inflated than seeing based I for of ask pent-up the market ball don't over for concern that XX the these you events of enthusiasm growth business morning a ways. couple kind sort Hey, wanted of now, we but we're more lap trends good have some will in year on Andy. And demand. is

then you relates corporate side. those you your to about to of in marketplace as strong maybe of the duration just years? typical that a to suites sort the love remind I'd New contracts opportunity right on of last kind question a now your market of reprice on sponsorship York? think So, of us Can to those kind and go And hear particularly similar to of couple it really that's line you thoughts as relative as and the

Andy Lustgarten

Sure. to. Happy

difficult So, come New -- very beginning. think I'm largely start where York was through our for on let way in closed. think have entertainment proud in two I the we me how here lot it's a especially the and business, our where last years, we've operate incredibly just to start -- venue let's I sports across which can navigated at been

we in about feel So, And in more our talked then continue set what of the to to these think then about could base efficiently. a mentioned growth put a capitalize also technology, more better that opportunity made we whole strong to sell We've set allows effectively really earlier how our I business took did and operate I I revenue. we to our about strategies. drive us was really which as before we've infrastructure, on forward. and And us drive allow that investments

a our growth have as to of about some of level I business market of take agreements provide XX level us we strong certainty we these over business. a good through the initiatives, feel XX the then very We -- regardless think a is. months what real long-term And next of where that in the certain of ballast

building? on already so based -- sell. We XX% at mentioned what to That's both last a of year. the we in the focusing pricing did sit And ticket we base well that's and the COVID business, Knicks continuing seeing wait we an when Rangers renewed see let's from on said, combined that I our during with increase came -- have as just as say renewals across what looking playoffs, we'll do second. our And we do our basis Rangers. still was any on Knicks but a particular -- and and where single tickets and we're again. we're building we start sell we're and have used a renewal it every to we back this the the we Currently, We where I'll in are on both new opportunity earlier, seats how game many

a Let's a go league and configuration with whole set was We worked the the we found around. how our new and and scores think the things where that exist about and we've changing out configuration. first before. inventory by work with and a few our And exactly set moving table and laid league we of we've row new second found didn't modifying whole

So, we think that's another other premium going about opportunity for growth. And is we think to premium, valuable. incredibly think opportunities. especially continue in this We're business, to

terms merchandising including up, as reported. short-form And Jeff year is today think continuing them tremendous with the -- given And in how which full allowing about renewals this, at knowing year better our new thinking In national the routine or new lead front, we're of Ranger of NHL road. betting jersey enhanced Knicks created we do on NBA business. on sets fashion the for Jersey, capitalize there's there's what advertisers consumer deals. And our rights as, of amount sponsorship contractual both boards this have capsule creating really fees, an things on We've reach about I the Kith being business, as are a announcements first the on on fabulous our new feel inventory opportunity better, XX digital there those we've through or ability been big sell dashboards merchandise. come about their our on content, think consumers we've new with our and been a media creating little On here. of focused well to the focusing see We about Staple patch us venue. as rights we're seeing around talked very teams what's to a bullish runway the in through the fans better multiple below are the really the we the to we'll impact them to reach level sports we mentioned such in innovating level.

lastly, will run like its So we lots playoff also will continue we think things strong. this, business consumer drive [indiscernible] what Rangers do that continue we drive And there's, demand, of that help we our can really And the demand. and the multiyear with to think feel on impact to forward. business obviously

to there's we of think we next a growth and forward months. lot XX the and So look XX

Ben Swinburne

Your question from comes David Operator: next from line the of Karnovsky JPMorgan. Thanks Andy.

Your open. line is

David Karnovsky

Hi thank you.

Victoria, you for could us Just do you is you're down think priority And business room looking capital or our one update the leverage on, for next about how wondering Thanks. the over if debt year? at right how for you do allocation the pay repurchases see the overtime?

Victoria Mink

Sure, Hi David.

So as we break down have allocation it our priorities. we think capital policies about three I really

invest First, liquidity our and to to is to operations fund right? core maintain the appropriate our in business, Yes.

and expenses. last upcoming that of impact the NBA As cap example our expect higher is we the mention We our, an related lead example Yes. below team of were roster. fiscal this salary you expenses higher in operation well heard some me a that little earlier year current bit An year.

$XXX.X that NHL It's million going the a note the increasing, to from And NBA million more but million. as million. modest from for And so I upcoming would salary increased $XX.X right? it's cap increase $XXX.X to is $XX.X it's well, the season

So in in on that make to, these to areas and that operations business. and we're looking core continue our fund focus investments

just keep is priority strong The in balance to our sheet. a second mind

do. facility did what As that's includes this to down to $XX we've recap you just And the and pay eliminated this million on year balances we brought fiscal facility. we've down continued to the debt total mentioned, fiscal We it discussed all know the our focus the another and under million debt our -- year paying just can on Rangers as the year $XXX and this saw Rangers of in don't environment the quarter near-term. the two pay down Delta a flow for cash the full flexibility outstanding plans our of Omicron uses may other to really unpredictable important free going capital. consider But we're just maintain be return course, reminder that of have the time to we it's And that we -- then that we priority, variants we that including at and would in third another of specific share. we the need any we this

David Karnovsky

Thanks. helpful. Very

Operator

the Your next Brisco Devin comes from line of question from Research. Wolfe

Your line is open.

Devin Brisco

taking for question. Thanks my

sponsorship the With terms to playoff tailwinds the out helped And quarter, could strong future business? an or which around off Finals suites already the Rangers ticketing Conference play playoffs to segment in the the meant what to strong what advancing for Eastern your parse other impact is performance in was of you historically run or by contribute quarter? any

Andy Lustgarten

Thank.

I'm I'll So to so, at a more. little in start I'll Rangers we're to with the obviously post-season level But answering start proud extremely Victoria bit the run. of highest going then I fill think -- for ask

great feel a they've have see strong been acting this going profit from we how both year. it enthusiasm into far we about as playoffs forward. I as the think fans so look our we well very We during And going the and and as news

two selling on historically, is, tickets what So both whenever effect years folds is what's a Mentioned proceed dynamically you more individuals. And already obviously for pricing there individuals see the were effective and upside. XX% able the the further teams to then still renewal especially and the is new to on rates, demand co-season to long between in rising. combined renewals, our rate run run on capture following be

ticket when following the seats -- we've to platform, we and -- have a we're able modify for addition, our In price year. we do

we new as forward does year really creates also to fans. the into But look this what following that it starting benefit is it we're and see years. So,

data to And social but data around so, media. our is I it's hard do were about exact what able this we think the on to put best

XXX,XXX just So, games during or that came added media Those tickets, around followers in the new buying of Rangers, and the knowing driving to new over playoff that will see engage our we've but are buying focused front. half social of almost We business consumer. half new last fans we our that about year and on -- coming product. our merchandise, consuming been very people with really social that our

renewals. And we course, we business. happens our that about about our what good of same when to to that's in going all think do So, suite the of feel

demand need efficiently the and we City market find we'll New partners. of more hope of And it. with to be price here best and ability entertainment got deliver I that we've up, see come those York and to a As larger in part Corporates our it. for those

up, price partners come to we able We about think inventory mark to different that. is our levels to differently. come think as able up partners So were marketing on we're and so, for flow there

great or you quarter the the Victoria, bit it as great years follow this quarter? to on it's add detail little well. more for do in a happens in So, and want year that into it's

Victoria Mink

Sure.

couldn't we mentioned the of Andy as more proud course, be play off Rangers of of from. strong So

you recap to just the as a see to So little XX And and provided games boost significant little we in a AOI. a the revenues quarter. fourth at can Garden and in results give more games color, hosted playoff these our

part First, tickets. of that comes from

first ever of for per tickets and that gate went game strong any merchandise playoff our of premium think games. sales AOI into of notable than $X.X F&B sort priced the round a was Our arena season which the call generated as the game per game meaningfully I finals. more And in I million Cup last as great. to the translates deeper generate NHL expected our as AOI a each are post And Stanley a to in home highest course, all including and increased one significant prices just round rose. our in on was And ticket about revenue here, playoff any we excitement the mentioned at the to of season team regular mention we

revenues $XX.X prior million playoff games home year last were the period mix in the to quarter million playoff-related the which in compared as year. reflected $XX.X our three So,

playoffs game $X.X to with will million, which game skewed of the translates in rounds. I though, million $X with this is note in exclude -- per approximately our higher about course in is administrative our incur, this expenses, average, does And of participation. do net would that later we per revenues. in towards game per I results marketing $X.X some direct million connection So, costs it on a

Devin Brisco

color. has New gambling been months. the second now My on that Great. going in is, I legalized appreciate question eight York for

sports and in your across increase ratings NHL time betting NBA You've to strong, major speak had and Could are the partner the engagement, sports companies are ratings much are do your fan of just evolving this gambling? how the here? new see across existing to at really due some to lead. seen strong from how with base that you've And opportunity, fans monetizing or betting And point? you by you you and

Andy Lustgarten

you months people I engagement, is when the it's events. our the a first points key well, you. And only run. of note, Thank respond me ratings eight as to still you early point the Well, it's to into few think and about engagement coming I'll of hit so Sure. actually

hard York driven So are up. clearly a gaming. macro view, take exactly, both market, But the It's of I very very New more by point is for as those large parse what to factor. of what's

We partners. the about by other There rate. great been by hesitancy, some and three definitely have both has publicly tax certain partners

view to when our further that, market could we over the But investment say And if in-game sports partners. so have that as tax we where interest you again, been developed, a other see see even of in time, been time, sports see macro I if changed in or by betting to you for think have this point you long more grain more take Europe, more rates further a and much is go bets. to go and

always going for directly time, bets things see revenue that I from what's about to You about what more partner, does marketing I'm I've small and bets, a see of it. happen next. about long yes, for when it this that betting more over engagement quick are immediate excited those consumer period but actually are that does you from micro what comes And take the talked

at sports one look of which parts points betting the in There's like better is further the many So they're engagement. so people you world. sports of bets, of Tennis, places to for

that in as of along, moves that And as in see drive see further NBA even develops both technology we'll the sports going and further. as engagement. other here the the actions will well to the which types US, I it NHL here we're as think more of those

I I So been great - very a it's launched. we've as well gone think think it's

been growth in kiosks able in to is industry that I think this our partners further And tax and very I been changes their there's drive we've especially, if happy, think as how there regulation business. help rate. such with have

here. very feel we good So

Devin Brisco

Thanks.

Ari Danes

we Devin. time last Operator, Thanks, one have for caller.

Operator

comes of from the final Your Farshid line question Javar from Jefferies.

Your line is open.

Farshid Javar

for me squeezing Thanks, here. in

the little like on specific broader elaborate in for touched more bit, space but sponsors, a on the briefly can looks company? that with this you maybe international NBA for what You tailwinds

Andy Lustgarten

absolutely. Sure,

leagues about have and and So, of pushing prior categories an job again think amazing about to COVID business. thinking really but I of do both and done leading think coming new we COVID out inventory, new how our during it

activate international spend you add opportunity is ability focused partners one the have partner that has The a And besides what is to two the time to there's in issue NBA we didn't is, trying partners. a the when only means truth done that of of Canada, markets. China is So – to the have two things the always ton internationally. is and on the find

XX raised NBAs it the partners. now So to

Operations Global doing Business He's have where NBA. the ton we MSG. step of is was lot came from done of international, – from say David within Real came we've global what ran take Head got he Partnerships. and I of this. before so And he strategy. Head here a up I have I here international our President is a wait, me Madrid, experience the I of a Hopkinson, let experience of and

give think international activate be partners tremendous twofold. for further could and have domestic and them, focused we find talking up we trying to great you're about are have you your where it. home an partner to actually partners. category, in can I experience a new category, even and US find we're and international or is to this So, going well, we there to international say, allows One, international partner think us it in either who partners about to trying opportunity and the not those or a business, their way the domestic out to an markets, in is internationally give going talking unless this, find category, a upside when so you're see – to showing a that's either until And partner its

that, can investing XX now partners, worth have And we it's it. actually so around

people ability So couple hired and a experience, are we York And international focused international and think markets. on of finding there's into take those who to business. very real David New take with this could is this grow brand really Hopkinson, and who I my partners – are only as that to we a to grow business lifestyle Knicks the – put we a

exposure, opportunities So, broaden broaden our to we'll fan. broaden and our have reach, to growth our

more So largest should a international take those to is, you the a were obviously little have reach the look a is from add opportunity. we I while not this to point US. if patch It's immediate. the really – at we last that Jersey And trying deals, harvest. great think some actually, to largest going of It's the one come or all buyers

about to us for the find future as partners. around go the even enthused, the invest so, And think to opportunity, I I'm further ability of the Jersey international given patch

is long be a little will this of there, big but driver term. real it our driver. – take be this business a real will a So to get will It a

Farshid Javar

all color. the I Thank you. That's appreciate for me.

Operator

Ari closing session I And this turn Danes. over you our ends back remarks. to final for call the Q&A Mr. some

Ari Danes

look all speaking for joining good earnings to you call. Thank us. a our Have with next We you day. forward on

Victoria Mink

Good-bye.

Operator

conference for today's concludes participation. This you call. Thank your

disconnect. may You now

Madison Square Garden Sports (MSGS) 19 Aug 222022 Q4 Earnings call transcript