NEW YORK, (CelebrityAccess MediaWire) — Madison Square Garden, Inc. reported strong financial results for the second quarter, beating expectations of Wall Street Watchers, primarily on the strength of their media and entertainment segments.
MSG's Q2 revenues saw an increase of 9.5% to $227.1 million compared to the prior year period, reflecting an 18.2% increase in their media operations (which includes the Cablevision cable television system) and 14% at MSG Entertainment.
Second quarter net income of $14.0 million ($0.18 per diluted share) increased $17.9 million compared to a loss of $3.9 million in the prior year period.
MSG attributes these increases at it's Madison Square Garden Entertainment segment primarily to an increase in the number of shows held at Radio City Music Hall. The segment did post a $9.9 million impairment on "a live entertainment production", likely Cirque Du Soliel's ill-conceived "Banana Schpiel", which closed just six weeks after opening.
MSG took a hit on the sporting side however, with a 6.9% decrease in revenue, which they chalked up to a decline in sports team playoff revenue and the absence of marquee arena boxing events.
"Madison Square Garden's strong second quarter growth is a continued reflection of the integrated approach to our dynamic content, iconic venues and programming distribution platforms. We are enthusiastic about the strategy we have in place and continue to see all three of our business segments as meaningful contributors to our profitability over the long term. In addition, the transformation of Madison Square Garden into a state-of-the-art facility is now underway and we remain confident that the transformed Arena will further enhance our growth profile in the years ahead." said MSG president and CEO Hank Ratner.
MSGE Shares closed at $19.46 Thursday. – CelebrityAccess Staff Writers
