MSGE · Madison Square Garden Entertainment Corp.

Madison Square Garden Entertainment Corp. reported fiscal 2026 third quarter results with revenues of $246.3 million, a 2% increase from $242.5 million in the prior year quarter, primarily driven by entertainment offerings which rose 3% to $165.7 million. Key drivers included higher suite license fees shared with MSG Sports, increased concerts at Madison Square Garden Arena, elevated sponsorship and signage revenues, and stronger Christmas Spectacular performance with higher per-show revenue and one additional show. These gains were partially offset by fewer other live events, including the absence of a prior-year multi-day special at Radio City Music Hall. Arena license fees and other leasing dipped 3% to $35.5 million due to fewer Knicks and Rangers games, while food, beverage, and merchandise revenues fell 2% to $45.1 million from five fewer Knicks/Rangers games, though concert-related sales provided some offset. Direct operating expenses climbed 10% to $118.3 million for entertainment and leasing, reflecting higher shared expenses, concert costs, and venue operations including compensation and maintenance. Food and beverage expenses decreased 8%, aligning with lower game volumes. Selling, general, and administrative expenses surged 17% to $61.0 million from higher compensation, rent, and other costs. Consequently, GAAP operating income dropped 41% to $16.1 million, impacted by elevated expenses, restructuring charges, though absence of prior-year asset impairments helped. Adjusted operating income, excluding depreciation, share-based compensation, restructuring, and other items, declined 20% to $46.0 million. For the nine months ended March 31, 2026, revenues grew 10% to $864.5 million, with adjusted operating income up 9% to $243.5 million. Executive Chairman and CEO James L. Dolan highlighted strong demand for live events and affirmed the company remains on track for robust fiscal 2026 growth in revenue and adjusted operating income as the year progresses.