MSGS - Earnings call transcript Q2 2025 | 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 2025 Second Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Ari Danes, Investor Relations. Please go ahead.

Ari Danes

operator. you, Thank welcome Earnings and Sports XXXX fiscal Good Call. to Quarter Conference Second morning, MSG

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

release a have available copy not that do earnings of website. is the today's corporate you section Investors If in of our

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

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

Jamaal Lesane

in Thank swing. you, Rangers Knicks and XXXX, 'XX Ari, good full seasons are The and morning, everyone.

revenue investment robust alike merchandise. ticketing, fans our and reflect adjusted areas, in $XX and Sports income corporate fiscal key while suites, of momentum 'XX $XXX positive revenues demand million. strong operating reflects million adjusted demand partners from in and sponsorship beverage of The the quarter, all operating continued food, our income has MSG approximately also overall generated driven and For second These results approximately teams.

compared as 'XX quarter. were across key second revenues every per-game to fact, the category up In fiscal

So remain line the franchises iconic our strong seeing, are we in with confident outlook sports for top our and the trends we business.

detail. Karl-Anthony culminated All-Star with More the through are operations Let's Brunson than moves, a had pleased both significant more now of X-time the Towns roster the excited which for All-Star, we see far for halfway performance game. with and Towns. Knicks discuss number so recently season, trade already the in starters XXXX we in our with selected to you MBA Jalen included last off August, the and NBA Since season, as team's spoke we're

Rangers star tournament, the extension this signed game number Shesterkin X-year an the of December. X which held NHL's side, all-star hockey place being players is Nations of next Face-Off with the an the in participate team's a in contract will On And our year. in goalie week, Igor

look unfold, was Rangers. As rate season fans the our show watching to year, and forward season, this combined of Knicks the their we to have ticket to XX%. for seasons the coming Throughout support average approximately renewal months continue our This competition. continued

including new offerings, ticket as addition, tickets. and In individual season group ticketing pricing our as opportunistically have packages been other we well

also as continued plans have a ticket result. have We our for more options flexible fans seen increased our and demand to provide with

was helped in Fan up average ticket extended ticketing enthusiasm Putting average compared on the we drive cap to in basis spending also fiscal saw second it the in year-over-year with all beverage has increases and attendance second revenue. merchandise a growth fiscal as quarter. together, to spending both per-game paid 'XX in-arena yield per which food, and quarter,

the collaborations, The including resonating. the we success partnering the are And season. these Knicks to New continued of first with given that Rangers initiatives clear innovative Contributing ongoing to to this these brands, again unique partnerships Nowhere. York time are It growth for introduce our and X offerings. efforts Kith or expanded this is once those merchandise

Kith Rangers Knicks the sales their history. highest in in In the were debuted when season new single-game launched amongst collection each or with fact, their arena, team's merchandise and Nowhere New this York

engagement. exciting We introduce also event offerings continue to to foster fan

For number alumni. example, the culminated night weekend, included history. homecoming with hundreds game fans our DoorDash, rich first honored sponsored free The alumni team's by we and held homecoming alumni celebration and official presented recently the with of of Knicks at team event which Chase a a daytime celebrating and by

rights. Turning media to

As MBA deals, National which has next are to new the a Media entered year. reminder, scheduled into begin

to result a in will the compared in valuable current made a in available exclusive our which impacts a telecast live step-up annual of escalators, well these it value part of as increased to ecosystem. the reduction While agreements include as average RSNs, deals also will number

As refinancing also a is pursuing its media know, our local you announced August, that of partner, MSG facilities may Networks in it is through a which rights workout, ongoing. credit

rights MSG renegotiate media in potential including process, that local rights us to approached has As reduction Networks our agreements fees. a our part of

addition, In the January challenging optimum USA RSN demonstrating that from Networks the offering continues MSG industry its Altice X, on environment dropped to face.

the assessing continue path and forward best our for to business, keep you we'll actively are updated. We

and partner with has With October, the included appears significant Department as highlighted shirts. a well naming Abu shooting official the new the jackets announced warm-up partnerships, which Knicks of marketing agreement jerseys Dhabi's renewals Experience logo multiyear all of XXXX Abu on respect by so Tourism patch as far. Dhabi and Their a to number company fiscal as been deals Knicks. game of In and now Culture

with renewals Lenovo Verizon subsidiary Moore. new Benjamin In the reached and with addition, over the multiyear months, multiyear signed last Motorola, and and several sponsorships we

we introduced premium That activity expanded the renewal includes space, XXXX, see suites continue season. event of of which sales hospitality, for and strong at ahead Garden. club terms last to was new and In level year the 'XX the was

renovated. are number recently seeing were addition, of revenue incremental this event from suites In of level year Lexus benefit that we and the a

underlying confident in owning value. demonstrate remain drive we of look while value RSNs as strong to continues fundamentals. for we to ecosystem marquee our sports business ahead, to ability the evolve, long-term the franchises and And Our shareholder continues

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

Victoria Mink

morning, you, everyone. and and seasons the play games XX we of year, positively fiscal XX regular and games season the In quarter's 'XX which as pre- this reflect preseason the second hosted Thank quarter Knicks start both results. aggregate, good for to for compared and the Jamal, 'XX, regular Results Rangers. across teams last impacted

season third period. in fourth that note prior will games reflect fewer home also as fiscal X compared total regular to I'd year the and our quarters

mainly the as the year prior Garden $XXX.X the prior more million games fiscal quarter, key to consists year-over-year. ticketing, game a revenue category revenue every in food, million at million, increased of XX% $XXX.X $XX.X as per across the the revenues increased of million $XXX.X and as year-over-year were well revenues merchandise of suites XX% home Event-related For of on while which compared reflected year versus and 'XX revenues second impact basis. total increases period, beverage sponsorship which

and prior extent, partially to $XXX.X of impact million the offset revenues. primarily impact higher due MSG our local the a increases during administrative in Networks year. National increased the to expenses exclusively current $XX.X fees in number operating an available of decrease of general the the expenses, primarily media Adjusted partially on to in of rate million rights $XX.X media million games a selling, and compared offset local contractual due rights national increase by the X% deals, operating by and to as to lesser income increase decreased direct year to and

million reflects to well license expenses be company's that the fiscal $X a personnel luxury expense noncash tax operating 'XX-'XX primarily of compensation quarter in significant as Knicks will based the of the current increase results the The transactions. team operating certain period. higher direct arena team include 'XX roster. luxury as taxpayer These as and fees reflect in expenses season the Our on Xnd impact the compared team's $X.X corresponding expectation prior year million personnel direct for

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

pleased trajectory. in in remain so trends are We business across and far our long-term 'XX confident seeing the demand we with its are fiscal

I will Ari. over call the to back now turn

Ari Danes

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

Operator

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

David Karnovsky

Just with blackout given the your to the obviously, ongoing Optimum, then and process Networks some and with its lenders there's here rights revenue. risk MSG local

the an opportunity instance? and should range Knicks is at look outcomes this streaming So reduction look your a investors broadcast or maybe process and structure at also bit a there simply alternatives rethink fees? to as like for Rangers to distribution through of Or here

Jamaal Lesane

Good and for question. morning, David, thanks the

shareholders our connection to fans. maximizing our be local on for Our with focus continues and our maintaining value

us Networks hypotheticals connection fans. our for and remain long-term local pressure our grow mentioned media industry-wide MSG that as continue -- important been partner reduction to we forward speculate maximizing we negotiating about earlier, our on our than in content local a engagement for being great is with has I'm a has Networks our value Their on obviously, best going Now and our which drive MSG other fan fees. not with includes, the to That shareholders and and there helps path ours. drive maintaining approached we have base. focused assess of rights, said, I business, local on rights

Operator

Brandon Ross from from Partners. Your the next comes of LightShed question line

Brandon Ross

if team your there rights up access us significant Can Maybe through you does to you capital a local of David to in a have? from operations you to revolvers take follow-up including and of asked, your being have other end MSGN sources payments fund may to just pause an rights any bankruptcy fees. or position what walk liquidity a that reduction

Victoria Mink

Sure. for question. Brandon, thank the and you

me I just liquidity, a I get back. into So before let step guess take

revenue into future, $X there So reduction fees to $X a are factors. offsetting cash in flow translate significant as in local rights reduction the in media a note reduction important it's doesn't our in if there that were a

would expense So for sharing revenue example, decrease. our

would As given as full income a our taxpayer. cash company's taxes, status income the

one. not it's one for So a

cash liquidity calendar strong. million We ended But with with said, hand. that position is year $XXX over the our of on

Knicks have facilities In borrowing with revolver. Rangers we Rangers on revolving in place the the available in credit $XXX million capacity addition, and

substantial Now seek either have we'd lenders to needed. are if number financial in the borrow our that, -- to waivers of would be we a event irrespective bankruptcy, flexibility But confident network funds from borrow MSG from able a of other and facilities. funds need we Networks of the additional of sources to against

Operator

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

Benjamin Swinburne

in guess, fees, the you but player I of impacts topics. does to line? payroll get you expansion X potential the share help those MSG your particular, could wondering through additional NBA pot franchise into In the fall that bottom the or Sports go how P&L. of I'm if that us understand does

pools from topic selling while I a expand of ago. and sports think, thinking you that teams, of your ago, appetite while the a consider revisit something to franchises. about would continue NHL, and teams capital a either expand a look the about and be been NBA And which would be which that happen -- gain in at can we to with in generate taxable? the then Any that should the maybe teams What's -- to minority have stake any let was that talked as invest

Victoria Mink

Great. the me of expansion. I'll start. question Ben, the let regarding your part first take

So But I XX say among fee can existing expansion matters any on hypotheticals. I NBA comment teams. is here first, to equally what we're that the not divided or potential is going league think

fiscal as you to the we that 'XX the expansion basically drops example, right may pro recall, of it way and of when bottom rata that in share the our joined line. NHL, fiscal Seattle back in fee year, by recognized Kraken Just

potential divided rights league basis. But however, of teams I would including national would the our pro media a any rata the example, that increased go-forward revenue for on following be expansion, amongst distributions, from note, right, number agreements,

Jamaal Lesane

part of think confident assets. current we appropriately And in don't teams. in are your price. They They as are that our our have ever of are second Ben, business fundamentals. with And the respect we question, stock reflected to those as scarce the value strong

a of And report. also, minority with tax time, we concrete never to sale. implications your at of speculate on But any out we I have nothing rule can't stake So possibility would that, hypothetical. the this

Ari Danes

Thanks, Ben. Operator caller. we'll take one last

Operator

the from from Joyce comes Partners. Research question David final Seaport of Your line

David Joyce

questions, A couple of please.

First, on sponsorship.

next And thoughts on more on growing for sponsor and that going sponsorship patch. touched revenue year? the for Can you Abu provide secondly, morning. announced you the areas about what performance, other And jersey arrangement you some also then CX the puts line? growth given broadly, forward, color pricing Experience the ticket You and the are and outlook are where your could Energy given still this that more what takes various new be team revenue on Dhabi

Victoria Mink

I here think, Again, around I'll part question of your David. sponsorship. the first take, Sure.

had the discuss a believe our has in individual any far don't Lenovo 'XX. with number as of we Jamal so multiyear category deals we well Moore on mentioned and with deal we year and is deal, track as Verizon for by its a Benjamin fiscal while extensions renewals. earlier, And overall So marketing announced new of specifics Motorola. partnership This been new multiyear growth subsidiary highlighted sponsorship fiscal as solid and

and can in So Canada, Tourism becoming partner presence the the patch Knicks leverage markets. a global Dhabi with a Department also marks we the Knicks team. with global expanding Dhabi's And multifaceted of and as partnership and outside formed marketing brand team's Experience partner, Dhabi international Abu partner Abu U.S. Abu the official Culture Experience the of

patch, as this the deal. is always So jersey are inventory, believe pleased said, with real we we premium we've and

Jamaal Lesane

And and a as made view. shareholder how manage factoring season ticket as pricing, maximizing We're our are season well of our both with value. decisions we goal our in also our to those with ticket respect holders long-term relationships long-term with annually

recall, group of our may have renewing to as season last you to new we decision while as Rangers time, seasons, made we we last Knicks and the X and season and fiscal at opportunistically successful individual our the coming same increase packages both for As price holders, season not ticket off continue well tickets. our prices ticket or

year. track And year reevaluate as ahead, continue season looking yield revenue this we ticket to on still we're opportunity we annual every will see then ticket around that, growth basis. ticket drive with fiscal on overall modest And pricing and do to our an

Operator

I session. to now call question-and-answer our Danes for closing back will over the concludes that turn And remarks. Ari

Ari Danes

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

Operator

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

may disconnect. now You

Madison Square Garden Sports (MSGS) 4 Feb 252025 Q2 Earnings call transcript