NEW YORK (CelebrityAccess) — The Madison Square Garden Company reported declines in revenue for the fourth fiscal quarter and for the full year following their spin-off from parent company MSG Networks.
MSG reported revenues for the quarter declined to 216 million or 15% overall over the same period in 2015, with operating income remaining the same at $46.2 million for the quarter.
MSG Entertainment reported revenue of $84 million, off by ten percent from the same period in 2015, which the company attributed to due to lower revenues from the production, now called New York Spectacular Starring the Radio City Rockettes.
Adjusted operating and operating income were both down sharply from the entertainment division, falling by 188% and 112% respectively. The company attributed the losses to increased administrative overhead following the spinoff, fewer performances by the Rockettes and lower per-show revenue. The increase was partially offset by increased revenue from events at the Garden and Beacon Theatre.
MSG's Sports division proved to be the largest drag on results, with the unit's revenue sliding to $133.5 million for the quarter, off by 17% from last year. The company ascribed the loss to lower playoff-related revenues and, to a lesser extent, event-related revenues associated with other live sporting events.
President and CEO David O'Connor said, "At the time of our spin-off last September, we laid out a plan on how we would grow our new standalone live sports and entertainment company, and are pleased with the significant progress we've made on executing that strategy. We took significant steps to strengthen our position in live experiences through our investment in Boston Calling Events and our announced plans to expand into Las Vegas, where similar to the Forum, we think we can successfully fill a need by building a groundbreaking venue focused on music and entertainment. As we look ahead, we are excited about the company's future and remain confident that we have ample opportunities, both organic and external, to drive attractive long-term growth for our company." – Staff Writers
