NEW YORK (CelebrityAccess) — The Madison Square Garden Company has reported financial results for the first fiscal quarter, with growth in both revenue and losses.
Now a full year after the company spun off its sports and entertainment divisions, MSG reported revenues of $181.7 million, an operating loss of $32.8 million, and adjusted operating income of $1.6 million for the quarter.
MSG Entertainment's revenues were up by $110.7 for the quarter, an increase of 44%, which the company attributed to higher revenue at the company's venues, including Madison Square Garden and The Forum. Revenue from the New York Spectacular Starring the Radio City Rockettes was up as well, following the company's decision to shift the timing of the production's run from the spring to the summer.
Fiscal 2017 first quarter operating loss of $7.3 million increased by $6.9 million as compared to the prior year period and adjusted operating income decreased from $3.1 million in the prior year period to an adjusted operating loss of $1.1 million.
The company attributed said losses to higher operating and administrative expenses but maintains that the losses would have been higher if they had not spun off last year.
Revenue at MSG's Sports unit was down by 3%, while first quarter operating income decreased by $10.7 million to $9.3 million and adjusted operating income decreased by $9.0 million to $15.4 million.
The company attributed the losses to lower ticket sales combined with lower concession and merch sales for the period.
President and CEO David O'Connor said, "As we enter our second year as a standalone live sports and entertainment company, we remain focused on delivering the very best in premium live experiences for our customers and partners. In our first quarter, we saw continued evidence that this approach – along with the important steps we took last year to position the Company for growth – is generating positive results. Looking ahead, we remain confident that our efforts will position the Company for attractive long-term growth and asset value creation for our shareholders."