As Attendance Declines, Madison Square Garden Reports An Operating Loss Of $33.4 Million

As attendance declines, Madison Square Garden reported an operational deficit of $33.4 million for the fiscal quarter that concluded on September 30.

On Tuesday, November 7, Madison Square Garden Entertainment released its calendar Q3 (first quarter of the fiscal 2024) report, which showed that revenues had decreased by 4% to $142.2 million from the previous year. The corporation reports an operational loss of $33.4 million due to a decline in music attendance at its venues.

Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, The Beacon Theatre, and The Chicago Theatre are among the locations owned by MSG Entertainment.

Revenues from events fell by $8.3 million in comparison to the same time last year. The corporation points out that revenue estimates from the previous year were supported by a significant number of performances that were rescheduled as a result of the pandemic.

MSG Entertainment reported a $2.7 million boost in revenue this quarter despite the decline in revenue due to inbound received from arena license agreements on behalf of Madison Square Garden Sports. This lessened the damage that the decline in concert attendance had created.

According to Dave Byrnes, Chief Financial Officer at MSG Entertainment, “despite those headwinds, the Garden was just two concerts shy of last year’s record number of concerts for a fiscal first quarter at the venue—a testament to the sustained demand for live events.”

CEO James L. Dolan continued, “We are excited to welcome millions of guests to our venues in the coming months, including for this year’s Christmas Spectacular. We are seeing strong demand across our business.” “We are confident that we are in a strong position to generate long-term value for shareholders and are on track to generate robust growth this fiscal year.”

Compared to the same period last year, MSG Entertainment’s first-quarter operational loss climbed by $22.1 million to $33.4 million, while adjusted operating income dropped by $12.2 million to a loss of $0.7. The decline in sales, increased selling, general, and administrative costs, and restructuring charges were the main causes of those figures.

The business maintains its previously stated forecasts for revenues and adjusted operating income for the upcoming fiscal year 2024, which are $900 million to $930 million and $160 million to $170 million, respectively. It revised its operating income projection to between $85 million and $95 million, largely due to restructuring charges.

As Attendance Declines, Madison Square Garden Reports An Operating Loss Of $33.4 Million

As attendance declines, Madison Square Garden reported an operational deficit of $33.4 million for the fiscal quarter that concluded on September 30.

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