Q2 2025 Madison Square Garden Sports Corp Earnings Call Transcript
Key Points
- Madison Square Garden Sports Corp (MSGS) reported strong revenue growth, with fiscal 2025 Q2 revenues reaching approximately $358 million, reflecting robust demand across ticketing, suites, sponsorship, and merchandise.
- The Knicks and Rangers have seen significant fan engagement, with a combined season ticket renewal rate of approximately 97%, indicating strong customer loyalty.
- Innovative merchandise collaborations, such as those with Kith and New York or Nowhere, have resulted in record single-game merchandise sales for both the Knicks and Rangers.
- MSG Sports has secured new multiyear sponsorship deals, including a significant agreement with Abu Dhabi's Department of Culture and Tourism, enhancing brand visibility and revenue streams.
- The company maintains a strong liquidity position with over $100 million in cash and substantial borrowing capacity, providing financial flexibility to navigate potential challenges.
- Adjusted operating income decreased by $16.8 million to $20.2 million, primarily due to increased direct operating expenses and higher selling, general, and administrative expenses.
- The company faces challenges in the local media rights landscape, with MSG Networks seeking to renegotiate rights fees, potentially impacting revenue from local broadcasts.
- The RSN industry is under pressure, exemplified by Altice USA dropping MSG Networks from its offering, which could affect the distribution and revenue from local media rights.
- MSG Sports anticipates being a significant luxury taxpayer for the '24-'25 season due to higher team personnel compensation, impacting overall profitability.
- The company will host fewer regular season home games in the fiscal third and fourth quarters compared to the prior year, which may affect future revenue generation.
Good morning. Thank you for standing by and welcome to the Madison Square Garden Sports Corp. fiscal 2024 second quarter conference call. (Operator Instructions)
I would now like to turn the call over to Ari Danes, Investor Relations. Please go ahead.
Thank you, operator. Good morning, and welcome to MSG Sports' fiscal 2024 second quarter earnings conference call. Our President and COO, David Hopkinson, will begin this morning's call with an update on the company's strategy and operations. This will be followed by a review of our financial results with Victoria Mink, our EVP, Chief Financial Officer and Treasurer. After our prepared remarks, we will open up the call for questions. If you do not have a copy of today's earnings release, it is available in the Investors section of our corporate website.
Please take note of the following. Today's discussion may contain forward-looking statements within the meaning of
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
