MSGE - Earnings call transcript Q2 2025 | Madison Square Garden Entertainment Corp.

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Operator

Good morning. Thank you for standing by, and welcome to the Madison Square Garden Entertainment Corp. Fiscal 2025 Second Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Ari Danes, Senior Vice President, Investor Relations and Treasury. Please go ahead.

Ari Danes

you. Thank welcome Fiscal and Earnings Second MSG Call. Conference to morning, XXXX Entertainment's Quarter Good Lee Interim will Weinberg, and call, today's On our President, on company's and update Senior Chief Business Financial an Operations, provide the operations. Vice Officer Financial review with the then financial our a will results of I conclude for period.

open remarks, for the questions. our prepared up After we will call

following. of you note available in is do release, earnings it take not If Please Investors have our section today's of website. a the copy of corporate the

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

that, non-GAAP the On measure. of operating release, statements consolidated income, provide to a today's AOI, operating operations Pages call and or over a X to we of reconciliation with adjusted turn earnings And of and I'll X now income financial Lee.

Lee Weinberg

and Ari, good you, morning, everyone. Thank

Spectacular results number its holiday quarter metrics. operating experiences. the This and our led income in-person in into as shared consumers half adjusted with we of we XXst demonstrate $XXX Christmas million. fiscal was of from desire of record-setting was second of strong the the company's for across million achieved second demand offerings $XXX As are continue move by our evident season, fiscal seeing year, a results revenues their which in to This

we to the economic During the Garden momentum seeing for of we regular welcomed Rangers and the also teams. our arrangements back start the with their seasons, are Knicks 'XX/'XX positive and the quarter, in

tough our to a bookings overall Garden, fiscal are record front, to concerts continue the expect the events had a and bookings of we year-over-year number our fill which the calendar comparison of at 'XX. we On in venues facing while number grow at year, last

So our quarter. deliver We high single-digit to this to mid- on of growth remain track coming AOI seasonally busiest off year.

strength business enabled return the our addition, has to capital opportunistically In of us shareholders. to

million the resumed common During program we quarter, Class buyback the of A $XX of with repurchase our our stock.

nearly quarter. review at now hosted entertainment operational highlights. our venues, Let's more XXX Across and quarter X.X portfolio guests the during second events of than live million we sporting

led the mentioned these by were of As the Christmas I success results earlier, Spectacular.

price of demand we New continue grew in time, as to across market ticket XX continues sales to year-over-year These tourism. recovery manage, the same from our the individual our and the were robust benefit business individual XXst York show's sale For initially new included to we demand, the added our shows holiday XXX And we X.X performances, guests. performances, sold on shows were This total XXX compares to at ending million season, the performances. tickets run group and average strongest sell-through by driven received by tickets season. Across rate as show's XXX to immersive leading with results strong we while production of throughout ongoing last the both which for weeks elements, ticket City due At well inventory. thoughtfully years. went approximately X yields

appeal. to production shows and resulted as compared a reached beverage levels the it in million record addition, 'XX Putting the cap in double-digit revenue for percentage a increased enduring on shift. per fiscal together, average Christmas spending and the for total and a In by over new low record merchandise for per food, all $XXX show revenue Spectacular season, testament to this the

Turning bookings. to

our across a includes Joel decrease saw performances of which theaters majority during lower enthusiasm events fiscal primarily garden, by number concerts the in year we of driven the events X second place for at our was During and said, the concerts of in with number absence that both venues. the quarter, This year-over-year a for the out took of consumers Billy in-person quarter. selling to continue the prior quarter. show their That the

the and of at food, during highest holiday schedule in-venue year-over-year. musical tennis made for we since In of at at a we history And terms the sporting welcome hosted MSG, first events XXXX. was event professional shows its as caps Chicago the in beverage Arena's spending, of well Annie extended and a the as were which per At appearance merchandise we the the grossing concerts second run. an busy sold-out family which the concerts, Outside and Garden up the combined theater theater Garden, at quarter. UFC, had event,

Saturday in to expect set continue this to months. events forward at Night Radio in anniversary XXth are looking of We Awards City well next June. a events to year strong and our the includes week take in as Music the coming special special growth Live's, category fiscal high-profile Tony Hall place This number as

teams. the Rangers at and we so sharing and various 'XX, seeing During our far, and their Garden Knicks are profit began the momentum revenue positive the quarter, seasons arrangements with 'XX across regular the

to the the Knicks combined that as a fiscal over the would X during the year. note year's reverse quarter prior I impact quarter more this balance of home Rangers games of also schedules, and as fiscal will the timing compared second year a as played result

Motorola, as 'XX Tourism its to of Dhabi Culture renewal a Fiscal a and Department as Turning and Lenovo has premium Verizon. with multiyear announcements the by hospitality. of partnerships Abu been highlighted number multiyear sponsorship marketing with and new including well with and subsidiary, deals

we renewal Lexus as renovated. expanded to that number hospitality, activity of strong sales well event for Garden at space see a that premium suites and and of suites the terms as event continue new were In club level our level includes recently

over our see fiscal fiscal business. call our We long-term growth value and to to remain that, now generate the back summary, for our year will to I reflects for Ari. our robust ability this outlook in our continue In confident shareholders. turn With demand second in solid AOI quarter the we

Ari Danes

Thank you, Lee.

second For an revenues million, from compared quarter, fees license we X% other revenues. we increases Revenues to beverage food, offerings year-over-year, quarter. leasing well in the XXXX revenues the saw of as were reported merchandise while $XXX.X increase arena entertainment as essentially prior of year from fiscal unchanged and as and

shift Revenues from decrease concerts and from entertainment to mix at offerings in the mainly revenues, the a Garden the events due number a primarily rentals garden. reflected per concert lower to promoted at of

the prior higher reflected ticket-related and primarily production lesser compared largely X extent, revenue higher Spectacular and, to revenues. were addition, from year-over-year. to events additional entertainment decreases offset due personal period. These sporting This to decreased In year other revenues growth live as in the by a performances Christmas

addition, In event other combined MSG by fiscal due increase license to the food of per primarily impact other with sales across lower additional increase performances and in higher The subject second and in quarter. revenue at revenues. X Rangers playing the leasing offset This more additional was and Knicks partially fees Spectacular primarily primarily during arena increases. higher Christmas the suite to the of garden. The and to Sports beverage and pursuant Arena the beverage sharing year-over-year, concerts, and Rangers of license revenues grew included games at Knicks X revenues and impact revenue revenues own as fee license the categories the merchandise both food, as also economics agreements reflected well names

reflects offset income quarter increased in primarily adjusted quarter. selling, year million income general expenses adjusted the to increase operating operating as higher Second $XXX by compared or X% partially of and and increase operating lower costs. revenues, The million administrative $X.X prior in the direct

would in executive the transition includes impact of quarter. note costs incurred increase SG&A in I the the that million cash $X.X of management expenses

AOI Excluding quarter. X% or these million prior would have costs, compared the to as $X.X increased year

Turning to sheet. balance our

approximately of unrestricted XX, million $XX As we December of had cash.

of was million approximately $XXX full $XX the which facility credit reflects quarter. balance Our million paydown revolving our under during the balance debt the

or earlier, Lee A repurchased the million of Class we XXX,XXX our As shares stock. common during approximately mentioned $XX quarter,

to authorization. our reminder, a remaining As million continue we current buyback $XX under have

explore to capital opportunistically ways shareholders. to Going return will forward, to we continue

can that, for With we up operator, the call now questions? open

Operator

Your Instructions] Henderson [Operator line question from Bank first Peter the from of comes America. of

Peter Henderson

are on rest 'XX? And the fiscal bookings provide of 'XX. fiscal of update wondering, half for can for first concert just you the I'm an also then how pacing

Lee Weinberg

Peter. you, Thank

the In fiscal to year, this for of end terms quarters. a at for continue the of call, behind and shared pace June including Garden of what Similar Garden continues our number the we factors, Joel comparison the to on to residency. a last earnings tough we Billy March year-over-year face the

pace quarter, June Our the for theaters the up also behind pacing but for they're to quarter. continue March

in number our to fiscal 'XX, ahead are look positive we as of business. signs bookings seeing However, a we

about is of the typical know, months. as X X you window Garden, In to booking our terms

what quarter and have driven bonds, say are set acts, respect a size fiscal is quarter to a So of pleased we're 'XX. sample our up months. theaters, in then X window now the and 'XX, we a a to first versus new including is record X number This fiscal was typical by multi-night with our of residencies, to being first meaningful of diverse we repeat headliners. And of headliners pacing booking

there, are first early of a size 'XX. still stage. said, pacing the theaters That it's at small ahead this quarter it's and So for relatively a fiscal little sample currently our

solid to we're comp year, positive we at So note seeing And important this still are the signs with at far. 'XX fiscal by a we tough a so year encouraged of while we're ahead, concerts we're look dealing the Arena. the as for Garden expecting that it's

Operator

Stephen Your the next Laszczyk question Sachs. line from of from comes Goldman

Stephen Laszczyk

maybe years. now And Spectacular audience thoughts more out any the grow to course looking of that to this the year. on trends base? on I'd and performance compared over that played this curious, Could off pricing the holiday demand early opportunity talk this Christmas be you the new bit of prior higher Christmas ahead, season some nice then Lee, a Spectacular, little demo about

Lee Weinberg

Thanks, Stephen.

with the pricing, demand customer generates number This we us and believe know, rich to a a a as be tradition consistently The Christmas and guests sets across York cherish translated success. by continues history. show you which signs positive Spectacular for into up outstanding beloved feedback. of further As New ticket

strong York we by as driven New individuals demand First, saw tourism pre-pandemic approaches to levels.

run. add saw individual again our exceed a And projected is increase year's high in ticket sales, count percentage attending demand an pre-pandemic performances This there tourists during with strong to of terms year, think show. season. we levels to tourism show opportunity increase we next teens the this led us additional to next In

increase individual it Broadway sales is during and product, our inventory. still a the be to marketing ticket both able entertainment average and The premium to were across managing, we holiday ticket continues below by Second, season. well Christmas Spectacular thoughtfully pricing yield our priced and group

revenues. Going forward, we effectively more opportunities continue to believe our are maximize to inventory there ticket price and

pricing ticket potential to look as along continued ahead is there we that upside with next optimistic show we're count So to increase year. our the

Operator

next Our Karnovsky of question comes the from JPMorgan. line David from

David Karnovsky

a buying just So as your at you're quarter, think I last those repurchases were now, back noted, of prudent where trading light price above you in growth. you called long-term stock

outstanding I the So like considering update on would I flow authorization an ask or given and your cash timing? also thought approach for leverage factors

Ari Danes

Ari. I'll it's your take David, question.

So in stepping back, start that company position. I'd a our is saying strong by

cash generating Our free business significant continues to grow, and we're flow.

you've of terms as allocation, X we heard us have In discuss core before, priorities. capital

payments, We net going The our million grow. delever have approximately business continue a make front, to the are And as sheet. principal our Xx. now make naturally sure to forward, leverage to quarter. we to is per quarterly debt we'll On currently strong continue $X.X first is continues that which balance should

is have to we flexibility second see business opportunities. invest in Our when our to core we ensure priority compelling

horizon, capital modest. material aren't looking year, been has know, Now that this over capital our projects as near-term out the And to flag. any need fiscal you

to That And stock. our million repurchases priority precisely to which brought total million $XX quarter opportunistically third shareholders, this then past we April spin-off. we what when share our did 'XX capital our to lastly, $XXX repurchased is is return our since of

remaining We our ways opportunistically holders. under ahead, to to current authorization. to continue have $XX our capital we'll explore return million And looking

Operator

of Morgan comes Your question from from the Mansson-Perrone Stanley. line next Cameron

Cameron Mansson-Perrone

Garden the for couple just more of generally. A you, to related questions

also a been there was years that proposals there's logic as Station. the of there's around reno lose would be interested that its your exemption view be intent some the exemption and hear original your Penn outlook at First, latest speculation property second, I'd Garden hear that there. over to expectations claims it may lot And news may the than like various been today of relevant behind tax or I to less historically. least well. or then

Ari Danes

Penn it Lee Cameron, Station. on it's then your second first, to Ari. I'll question and I'll take pass over

I'll points make There's the tax this on a for on you. So topic the hope exemption. I frame property will few that issue

activity, and creator an both in Garden and city. in So community economic first, the of our is jobs the important

vast abatement type subsidies. several hundreds the New by to In millions those fact, and sports York in is governmental venues received addition, major some sports over And than majority be estimated lower of incentives dollars venues received of of of decades. the our tax as measured amounts

City I completed or subsidies that action New that houses know last top And exemption this then tax in Garden next would the York New was know point but any done either from to of XXXX, without state. State for obviously bottom the require we legislature. note and by is repeal would the point, billion a of of I both you any $X we York renovation the

to pass it I'll So that hopefully, and is color over helpful, Lee.

Lee Weinberg

Cameron. Thanks,

and improving the the of committed guests efforts and commercialization some of that of experience the have created time. very the improvements We recent with and Penn that members range we close area. wide nothing attending seen and of Station improved are We've this ingress to report the already remain stakeholders beautification are And invested the have have as of we we're further our seeing surrounding of taken to collaboration Arena, place. redevelopment our and our an continues, As in for area community, egress events. guests a benefits at enhanced

Operator

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

Peter Supino

me, Two may. if for I

about is, cancellations. talked first increased last The you quarter, seeing

on discuss you other or pricing. Christmas then room talked just more And value for it In I so about Christmas revenue prepared could I dynamic And on your you us pricing to subject. wondered tools can you if Spectacular, And optimization. be the remarks, how update wondered Spectacular. much that from extract dynamic might

Lee Weinberg

cancellations. say, normal you Thank both to Great. just things to have I'll start returned for of Quickly, those. levels. with

to We the cancellations. comes out ordinary seeing are of anything not as it

release or a time ticket demand last the in earnings cancellations can of November, our of or had happen schedules. postponements know, you different we reasons. for album As changes health, seen variety Artist primarily levels, of cancellations, out returned in call not call, the the anything that a at Subsequent concert to and for of cancellations and outlook that ordinary. 'XX. number we're have Garden impacted seeing fiscal to our normal At

of So our for revenue continue second on and potential we ticketing inventory we and dynamics we sales we dynamic by week where question to maximize run are strategy. strategically your and analyzing varies touched continually in time season. show individual pricing, each performance, the market on each as price of to Revenue day, and sales for Christmas are earlier, day and trends our market to manage inform

side, levers discounting pricing use, pricing name to the we On few. and including dynamic we have a multiple

tactics In pricing, implemented season. terms this a dynamic number of of we

pricing in insights example, highest a our take For we maximize to shows. our to fresh utilized schedule show and approach build order to for data the demand

basis data pricing a on on seat-by-seat and We received. also early the on to efforts monitor we week-by-week based trend every versus the prior started there, dynamic our season From year. we continue in show earlier a

revenue. where to changes price All we to make allows maximize can of us this recognize

So we priced there our on below our pricing performance is get continue the run while we yield to dynamically opportunity has and narrow and Broadway, gap. continue to that to throughout remain well believe we grown, an smarter

Ari Danes

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

Operator

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

David Joyce

Two questions.

spending, to signs coming coming, look the for consumer the opportunity the at venues venues. your residencies separately months. about have think in know you I and please but who you you health on per did remarks, of when on I wanted mentioned you general in them any of then if just the at could some color specifics to would the which provide do more First, your earlier cap be and how

Lee Weinberg

of both for Thanks those.

it residency the have example we front, residency. new was years and an was developed incredible to are On proud a venue to It XX Billy Joel's great how we've of posted increase of ways utilization. run,

did. want other number probably the conversations residencies artists by own of the residencies, are won't look of place. Future with We spin this. continue discussions their in Joel like taking on to a something like for we're structure excited one won't to Artists -- and and Billy that put exactly be garden the

a across our at year. this 'XX looking Jackman Radio Beyond have month, of MSG, Hugh number October Last Hall, Music show residency kicked we forward, his upcoming through theaters. residencies off which of City runs

at multi-night month run. Next the runs Mike and Glaser Beacon, Nikki their her and week Birbiglia, Chicago kicks off will at multi-night the start Tomlinson next Taylor theater

for unique to with Going artists increase work utilization. look forward, to we'll to ways venue continue

concerts slowdown of sold the to the the concerts And quarter. on our again XX% our the sell-through led are out once for In second at booking consumer over consumer demand. not part This majority in quarter. were any we seeing demand, business, during in venues

fiscal that as caps third take 'XX record For a second food, Christmas full line and for is years last combined sell-through and in record quarter have the saw year's the with in I per were as what XX strong to as fiscal concerts this our caps. per F&B roughly then, earlier, quarter, at Spectacular high 'XX the we fiscal course, up in shows or beverage the demand saw will revenues, year as average. And merchandise we well and place of compared consumer sell-through with And ticket, year. strongest merchandise mentioned very rate

strong see So for we consumers. continue demand to

Operator

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

Ari Danes

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

Operator

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

disconnect. now may You

Madison Square Garden Entertainment (MSGE) 6 Feb 252025 Q2 Earnings call transcript