NEW YORK (CelebrityAccess) — The Madison Square Garden Company reported increases in both revenue and operating income for the second fiscal quarter of 2017.
For Q2, MSG reported revenue of $445.2 million, an increase of 8% over the same quarter in 2016. MSG also posted growth in operating income, booking $58.3 million and adjusted operating income of $96.0 million, improvements of 19% and 17% against the previous year's Q2.
MSG's entertainment unit also saw improvement in the quarter over last year's results, generating revenues of $192.5 million, an increase 6% over 2016. They attributed the gains to higher revenues for the Christmas Spectacular Starring the Radio City Rockettes production and higher overall event-related revenues at MSG venues, as well as higher venue-related sponsorship and signage and suite rental fee revenues.
Operating income for the unit was $56.7 million,an increase of 28% and adjusted operating income of $63.7 million increased 30% for the quarter.
MSG's sports division reported an increase in revenues, posting $252.7 million for the quarter, a 10% improvement over 2016. Operating income slipped slightly, with the sports division posting $40.2 million for the quarter, down $.3 million from last year, while AOI was up by $1.5 million to $47.2 million.
The company attributed the mixed results to an increase in expenses, including stock-based compensation.
“For the fiscal 2017 second quarter, we delivered robust top-line and adjusted operating income growth – driven by broad-based strength across our Entertainment and Sports businesses. In addition to a strong quarter for our core operations, we took an important step in expanding our live offerings with our purchase of a majority interest in TAO Group, which adds a complementary world-class entertainment dining and hospitality group that generates substantial adjusted operating income, with significant growth potential. Looking ahead, we are confident that with our continued commitment to delivering exceptional live experiences, we are well-positioned for attractive long-term growth and asset value creation for our shareholders,” said MSG President and CEO David O’Connor. – Staff Writers