MSGS - Earnings call transcript Q4 2024 | 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 2024 Fourth Quarter and Year-End Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Ari Danes, Investor Relations. ahead. go Please

Ari Danes

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

Operating followed Victoria by Mink, will Lesane, review of an company's Officer, EVP, results morning's a and Chief with financial strategy be with the update Chief begin will operations. This our our call on Our this Jamaal Financial today's is do remarks, the call Officer in up not a section and corporate open have Treasurer. of it we website. After will earnings copy the Investors of our available questions. you release, prepared our for

performance the Today's could a risks company's such results actual and the Any of from Please and Litigation of differ note take statements Private Act materially forward-looking that forward-looking for Reform may forward-looking in within statements the Please uncertainties. of Securities refer or the to following. involve SEC future to discussion discussion uncertainties are XXXX. those the results contain the statements. not risks of with meaning of cause guarantees filings and

a consolidated income any non-GAAP of company or financial today's forward-looking be may earnings that X call. update we a X during to to this release, adjusted provide The operating statements discussed On and of operating any operations Pages obligation reconciliation AOI, disclaims of and statements income, measure.

And with that, to I'll call the now turn Jamaal. over

Jamaal Lesane

and Both results in morning, look my the like upon step teams colleagues begin of for past year, financial to Knicks continue I'd Rangers. by forward good resulting to the with iconic honored postseason Sports. our everyone. leadership build two into this this to legacies Ari, franchises, I to and role business. the campaigns strengthen had exciting regular how to strong and and our am Thank at you, saying MSG working I

core These our experienced MSG past as from records of of results partners our million. company. franchises setting and fiscal on of performance income new we and For throughout demand Sports for operating robust the on our fiscal the and $XXX season. over exceeding generated this the strong revenues billion two as adjusted and well $X reflect results both 'XX fans year. ICE 'XX,

all with Rangers including resigned awarded season to ranges all their via and the The This team Conference years, Stanley while number Mikal extended in advanced the reaching over regular acquired NHL the while record best season, new the team Trophy the players, President's ] The and had best Cup trade. Easton Knicks semifinals. both contract Knicks Eastern of regular-season NBA conference of to Rangers with the a Jalen Novi to former forward, Guard also Knicks Bridges Brunson the acquiring the Riley won record the the Smith. final and XX playoffs [ have OGN and teams defensive Champion, all

to ahead seasons, long-term look poised have players 'XX are success. key we the year's 'XX, to secured under both contracts upon last As teams build of a number and

year. to in or from near play and support local spending enthusiastic throughout social. at At again to TV both teams for all the past business. many Knicks the evident stands Garden our and areas year Rangers and sales on was Our the ticket at this capacity engagement purchase the increased ratings of crowds Garden, our

approximately for season loyal decision holders. prices upcoming season, the made renewing fan Rangers average combined This support over ticket at but 'XX season has and the our not increase XX% the the carried Knicks for the ticket seasons, for renewals rate season for in 'XX, to renewal ticket we

our expect continue flexible increased However, group opportunistically new demand ticket and season price as plants. and from to for we packages ticket will to well individual as benefit tickets,

spending fans 'XX during as merchandise cap beverage food, fiscal was per spending indoor arena and excitement translated also Our up into higher year-over-year.

premium with brands partnered our merchandise offerings the fans. several and resonated we new introduced On with that front,

For example, also season. Faherty time, of past These the offer to hats the partnership successful the unique same line Stable continuing and its KISS. partnered this with Siegelman new At while with collaboration a home 'XX. games with participation the hit with Knicks Rangers XXXX Knicks launched highs a Rangers for and were along regular Stadium the success merchandise team's jerseys, in new one two one mark as in offerings, revenue series NHL the to new in fiscal a season

hosted in merchandise, several our for and Rangers games, watch continue at connection parties during fans. player second past season, we strengthen party pursue ways with Conference a of to the Rangers way photo three with viewing to including special connect opportunities the range directly Garden to Beyond city. of and appearances two the our This game across events Knicks from round events us the during we included series Central alumni Park, Eastern the fans the and These Finals. allowing

also Our was season fans' viewership. watch excitement to in teams reflected this their strong local

teens percentage the new season, for throughout following team over And Local bringing MSG combined where also 'XX the XX mid 'XX, Rangers during a the added of fiscal ratings teams net by for social season, to XXX,XXX the both the high over Networks, end as on followers amplified activity the to on of seasons. million and year. media up we we Knicks

fans look content to to Going compelling our forward, ways we platforms. deliver unique through with will and for digital continue engage

for local number telecasts for live the season content markets. a number deals ecosystem the media local to well The exclusive facing reduction partners. to XX-year compared annual Last as to already industry These an current reduction sports of teams month, rights. escalators. and in made engagement available challenging regional as to media part available is the this include through This relied a networks. valuable The of the drive result environment. increased RSN annual value enhanced with impacts include will unique league's in telecast average NBA The our telecasts and in in which new start a also further game step-up upon made rights. 'XX, corresponding National national to agreements fan Media of in agreements tailored agreements the Turning announced the 'XX increase

debt evolving May, landscape MSG XX-Q disclosure This this our a provided refinancing its the MSG In of rights the Networks faces past efforts completing maturity significant not October. refinancing. a which implications media this its impacts on including additional local partner, filing of status Networks,

evaluate We these the developments, continue including to revenue. media impact Networks potential actively on MSG local corresponding our rights and

marketing partnerships. Rings, to several Turning marketing including welcomed new Oura Tire and Meat, year, Pfizer, others. This past Nexen we Beyond among partners,

good 'XX have We more start weeks. expect coming gotten a of off in share have deals also in new fiscal the terms to and in to to

revenues strong demand hospitality addition fiscal by two as past our level products, premium this record as new level the the year, space. event well terms of and In business, luxury suite club level of event suite suite we event saw driven and

we fiscal expect continued to benefit to ahead and sales renewals activity. from new Looking 'XX,

of with are in are process also the of is event and of Entertainment, and of in keeping goal a experience the We business. with opportunities expanding This the our capacity the revenue creating guest improving our partnership in MSG space. suites. Lexus event club we number the And renovating for level level incremental

of continues to live past of has the which our drive leagues So while with this evolve, our enthusiasm our continuing franchises popularity ability sports to for long-term strong, fiscal value. remains business shareholder landscape to the how is And value our to grow, reinforces our we and and pleased media summarize, confidence year. an are the performed in

call now turn over With that, Victoria. I'll to the

Victoria Mink

Thank Jamaal, everyone. you, morning, and good

For of for and $XXX.X operating of which, billion company. mentioned, fiscal are adjusted total records we generated as 'XX, revenues our income $X Jamaal million, both

playoff demand reflected quarter for the followed by they 'XX robust as 'XX Knicks fiscal results for 'XX, the fourth Our completed and from appearances both their our regular seasons Rangers. teams

also fourth additional home prior quarter reflected a home year as results in our four more Rangers Knicks seasoned Our compared to regular and combined period. games games seven playoff and the

a period. XXX% XX% inclusive million million, of $XXX.X tickets, the increase total increased merchandise playoffs, for As mainly of $XXX.X year-over-year. and revenue, consists beverage Event-related $XXX.X also of of playoffs, an year-over-year. to Suites, $XX.X prior compared million, sponsorship quarter signage the in which were inclusive as result, revenues of revenues, year food, and the the revenues million were

in In impact on Networks partially contractual local addition, of media media the available our deals. of to X%, made local national to and gains due national million number increases exclusive a and fees by offset MSG rights a $XX.X decreased rate reduction rights primarily of

revenues Adjusted garden a in $X.X lease to $X.X by in operating and during expenses for costs increases to the team prior reflected selling, in expense period. luxury playoff-related as income $XX.X more noncash general provisions direct were decrease AOI of tax. year of lease million higher costs expenses the operating played quarter expenses to current million partially at million to for gains offset includes increased increase and the direct offset net arena by million, and The expenses. period. sharing expenses, and primarily year increase 'XX in due arena and revenue for $XX.X extent, lower fourth lesser partially all due operating higher compared our These other team fiscal the operating operating administrative personnel higher a transactions provisions operating

quarter, of facility comprised senior our to This from the sheet. approximately of the balance credit advanced $XXX end $XX $XX Turning cash At million. Knicks debt the NHL. our secured of our the million was under balance $XXX and million million and balance was revolving

quarter, of senior under $XX secured credit and facility debt repayments a during cash the borrowings zero. Our revolving Rangers bringing the outstanding reflect total facility balance this under to both million our of

will So over fiscal performed shareholders. value and I Ari. to business in remain drive the call to for now year we back confident how this pleased with turn long-term are ability has our our our

Ari Danes

Operator, call the Thanks, we Victoria. questions? can now open for

Operator

from [Operator the Karnovsky Instructions] line from question first David Your of comes JPMorgan.

David Karnovsky

haircuts to order of Just ] cross teams have the put number ecosystem, the more on to stability at sees a RSN the pressure with into in boards right seen we model. take the [

obviously, noted, wondering in as So with revenue the and MSG that's But consideration National NBA deal, in maturity, something given there's Rangers. And offsets for step-up related coming nice down. if some then for upcoming exclusive the debt Knicks fees your that's and Networks there's distributors the a you game coming. Red declining under the inventory

expand you the if teams. it how curious you the of could net do all for So, on

Jamaal Lesane

rights earlier, a telecast not And additional as Thanks, mentioned morning. local reduction disclosure the back These a And taking to result provided exclusive MSG for of then live I a agreements David, new including media Networks, national completing earlier, for more as agreements refinancing of of the status a the our step implications MSG NBA reached in debt available its on and number partner, good in And refinancing. made its I rights. may the media efforts recently, Networks. mentioned moment.

to media So evolve. it's the sports clear landscape that continues

appropriate. MSG actively revenue. on as continue on And and potential any media We keep local impact Networks potential rights including to the impact you evaluate we'll these developments, our updated

Victoria Mink

second the the take I'll part of Victoria. national deal. around media it's impact new of your financial the David, NBA's question overall

So NBA level, as you national the the national know, media players And revenues, league-wide about all equally of in receive league rights including teams rights XX% fees. media at fees. share

So media rights in national starting annual rights will 'XX, will NBA revenues. see the turn as which well our annual 'XX season, fees the the escalators value national in that average step increased increase its media up for with as

agreements However, rights have including media new noted, revenue. assessing also our as local business, of other we're rights on the areas that these impact may

the MSG in agreements of this would local reduction not certain as a If of Networks number offset met minimum rights fees result to new as agreements rights national live provided the for provide games. of around national are in media the telecast the local partially to media increase and a number NBA regular-season a revenue. our would thresholds Our local be games deals, thresholds include total such rights

Operator

[ Duran Your next question comes Stanley. of Morgan from line Daniel ] from the

Unknown Analyst

not revenues prices? what the Why raise ticket implications 'XX? are in for AOI fiscal And and

Jamaal Lesane

thank Daniel. you And that, for

renewing relationships So for made with we not are we holders. decision That a key season, for season you teams ticket of or view. successful to to, I how prices philosophically, our should our loyal with our season includes say, decisions both after And of successful increase holders. as a all ticket long-term made the manage season alluded our

pricing opportunistically individual new packages putting we and to those tickets, group price and However, we around beyond and then and increased on have and 'XX to together, reevaluate the flexible from so continue our growth in basis. we season modest ticket 'XX. revenue all our to fiscal the for opportunity 'XX, And it will see we'll believe still we as looking drive ticket opportunity benefit demand as expect yield continue well to plans, annual seasons, ticket ticket an season ticket

Operator

from Next from question of line Brandon comes the Ross LightShed.

Brandon Ross

how you're an wanted return. Just capital update thinking on get about to

point. this a delevered You've at bunch

that some down does facility, have into play capital activity? cash And $XX is networks paid million situation thinking the follow-up. your on around Rangers Should buyback sheet expect up, You with how what, year-over-year. I the we a return? balance

Victoria Mink

Sure.

back, relates philosophy as the at taking step remain our to this So it same things priorities, a point. allocation overall really capital and

liquidity And in just you through sort appropriate right, our our core to take business. invest maintain fund of is operations to and first

to balance the continued of we we prioritize interest Second, you want included high as given have to rate sure strong make downs sheet pay we've and environment. $XX million a debt repayments our other noted, this open. And our Rangers we'll be keep all And quarter. to opportunistic under fourth during plan about facility and options uses revolving third, the credit we cash fiscal of then flow,

of we landscape continue $XXX the approximately industry remaining just under have repurchase and And our the act noted, we'll as RSN evaluate authorization. share million currently overall Jamaal accordingly. to we know, you As

Brandon Ross

it's minority cells since increased to quite something this you the It that then. a guess, values have you, And Is table? point? like then, years of exploring teams. on I franchise Great. tabled spoke the Or at a couple it still of seems been since have bit that's

Jamaal Lesane

Sure.

which we of minority before, And our nothing in rule as to current report this in are fundamentals, These we we of confident the assets appropriately said sale, is reflected a we value be with strong continue incredibly scarce time. ever teams. never while possibility our stake think price. stock we don't would out at the have to as As business

Operator

Supino comes question next from Research. the of Wolfe Your Peter line from

Peter Supino

initiatives rights about that rights beyond. will media drive deal broadcast new what organic beyond growth might company. to next growth the deal, Obviously, growth. the welcome wonder bring revenue you about be I year revenue Question and thinking to

Jamaal Lesane

you And question. that, for you asked Peter. glad Thank I'm that

key continue let record to and is including financial we of 'XX As how results through pleased you very the our business walk some in be with, areas upcoming earlier, already ticket seeing fiscal mentioned are business performing, year with me our strong ahead. as a From for the XX%. season approximately combined average of looking rates demand and we standpoint, ticketing I renewal of

flexible share sponsorship in of also We and expect for group individual ticket we're and weeks. continue as from we have to we expect deals demand a good and fiscal believe to our more in new ticket increased new start will to seed off well tickets, and packages. coming to benefit a opportunistically standpoint, packages terms as in price 'XX From to the

are have number optimistic renewals of also a year those. about and We this

And renewals we event demand then benefit last on also season. to on renovation suites. introduced level that capitalize and at premium partnership And And to Garden activity. several was event expanding space are expect level we hospitality, of expect in MSG strong on lexus for suites, and new lastly, the we the club Entertainment, from sales the with

opportunity our to we a So the have areas we drive of believe of across this growth number year. business

Ari Danes

last one will Thanks, caller. we Peter. take Operator,

Operator

Certainly.

Your line Capital. question Golding final Macquarie from comes from of the Paul

Paul Golding

had the follow-up, playoffs contribution. this in dynamics on some detail as of forward if or that additional of financial of good wondering into game of both now you've your And next maybe year at per stability for years assuming terms Wondering planning couple give margins team having teams if a appearances. could that's was year? Just playoff all a you going the factoring

Jamaal Lesane

thank And Paul. that, you for

typically, to over just business. the -- turn playoff in in several and in a impact. to and me I'll general, financial then results Victoria let it I'll So of more talk benefits about jump playoffs run for our And

ticket [ ticket offerings, members tickets, new whether feed and sales. In or group sales friend renewables, ] individual increases across our all demand of player usually of and terms a it's to

to premium added those ticket added increased In our of XX% our side and also allows new already A XXX,XXX extends demand the packages XX%. playoffs. turn then were As partnerships. media is sell followers, mentioned social new new marketing followers, which last season drives us we corporate to earlier, typically This more rate 'XX, for in for the front and fans. approximately fiscal nearly player combined season of renewal business, I hospitality during also net over

carry for forward. to already turn So momentum detail. little we more Victoria playoffs I'll And the from seeing are bit a the

Victoria Mink

Sure. Great.

So, yes.

at for So the on incremental evident playoff priced in tickets incremental increase which round. And business the is results typically run, premium to very F&B depending and the the last as to today. in result company, year. games averages. playoff spending in season our at XX regular each a playoffs we X per compared is significant particular, quarter, season and this hosted games are merchandise playoff cap of obviously above regular then, our past Garden length

million fourth as period. as our $XX.X compared the prior quarter the $XXX million revenues year So for were result, a playoff-related to in

to game marketing overall So costs as million our average average there in as revenues translates and operating and direct playoff $X additional per approximately were well some $X.X administrative million this connection game expenses approximately -- in per approximately in incurred participation. with

mentioned, expect 'XX. business positive playoff Now as the so across the to runs impact fiscal of seasons past Jamaal in our see we

Operator

We will our for now to have of Danes call turn remarks. Ari the closing session. over reached end question-and-answer I back the

Ari Danes

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

Operator

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

may now You disconnect.

Madison Square Garden Sports (MSGS) 13 Aug 242024 Q4 Earnings call transcript