Madison Square Garden Q2 revenue up 13%, beats estimates

Overview

• Live entertainment firm's fiscal Q2 revenue rose 13%, beating analyst expectations

• Adjusted operating income for Q2 beat analyst expectations, rising 16% yr/yr

• Company achieved record attendance for Christmas Spectacular with over 1.2 mln tickets sold

Outlook

• Company expects robust growth in revenue and adjusted operating income this fiscal year

Result Drivers

• CHRISTMAS SPECTACULAR - Record attendance with over 1.2 mln tickets sold, marking highest level in 25 years, contributed significantly to revenue growth

• EVENT BOOKINGS - Increase in number of events and higher per-event revenue at The Garden boosted revenues

• SPORTING EVENTS - More Knicks and Rangers games at The Garden led to higher arena license fees and food, beverage, and merchandise sales

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the entertainment production peer group is "buy"

• Wall Street's median 12-month price target for Madison Square Garden Entertainment Corp is $64.50, about 4.1% above its February 2 closing price of $61.94

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nBw3mr6hza

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