NEW YORK - Madison Square Garden Entertainment Corp. (NYSE: NYSE:MSGE) reported a revenue increase in its fiscal third quarter, surpassing analyst expectations and prompting the company to raise its full-year 2024 guidance. The company's stock rose 2.8% following the announcement, signaling a positive investor response.
For the third quarter ended March 31, 2024, MSG Entertainment posted revenues of $228.3 million, a 13% rise from the same quarter last year and above the consensus estimate of $219.99 million. However, earnings per share (EPS) for the quarter were $0.06, falling short of the analyst estimate of $0.27.
The company's financial performance this quarter was driven by the strength of its bookings business, with a significant increase in the number of concerts held at its venues. Despite the revenue growth, the company reported a decrease in operating income and adjusted operating income, with figures of $16.8 million and $38.5 million, respectively, which are lower compared to the prior year quarter.
Executive Chairman and CEO James L. Dolan commented on the results, "Our business continues to outperform our original expectations for fiscal 2024, and we are on track to generate robust growth in our first full year as a standalone public company. Looking ahead, we remain confident in the strength of our assets and our ability to generate long-term value for our shareholders."
In light of the quarter's performance, MSG Entertainment has revised its full-year 2024 guidance. The company now expects revenue to be between $940 million and $950 million, compared to the previous range of $930 million to $950 million. The midpoint of the new guidance range, $945 million, is slightly above the analyst consensus of $939 million.
Additionally, the company anticipates operating income to range from $100 million to $110 million, and adjusted operating income between $200 million and $210 million, which includes approximately $25 million in non-cash operating lease revenue related to the Arena License Agreements with MSG Sports.
The improved guidance and the company's successful quarter reflect the strategic focus on its live entertainment segment and the operational benefits of hosting additional home games for the New York Knicks at The Garden.
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