Capacity Restrictions Continue to Ease in Company’s Markets
MSG Networks Acquisition Would Create Leading Entertainment and Media Company With Numerous
Strategic and Financial Benefits, Including Enhanced Flexibility for Growth
NEW YORK, N.Y., May 7, 2021 – Madison Square Garden Entertainment Corp. (NYSE: MSGE) (“MSG Entertainment”) today reported financial results for the fiscal third quarter ended March 31, 2021.
In February, the Company welcomed fans back to Madison Square Garden Arena (“The Garden”) for New York Knicks and New York Rangers home games at 10% capacity – marking The Garden’s first events with guests since March 2020. Following the end of the quarter, New York State announced that indoor venues with capacities of over 1,500, including The Garden and the Company’s other New York performance venues, will be permitted to operate at up to 30% capacity beginning May 19.
While indoor dining restrictions also eased during the quarter, many of Tao Group Hospitality’s venues continued to operate with significant capacity restrictions and others remained closed throughout the quarter. Since the close of the fiscal 2021 third quarter, Las Vegas restaurant capacity increased to 80% on May 1 and it was announced that New York City restaurant capacity will increase to 75% beginning on May 7, before going to 100% on May 19, subject to certain social distancing requirements.
For the fiscal 2021 third quarter, the Company reported revenues of $43.1 million, a decrease of $138.8 million as compared with the prior year quarter.(1)(2) In addition, the Company reported an operating loss of $108.6 million and an adjusted operating loss of $69.4 million for the fiscal 2021 third quarter, as compared to an operating loss of $155.6 million and an adjusted operating loss of $18.1 million in the prior year quarter.(3)
Executive Chairman and CEO James L. Dolan said, “It’s clear that people are eager for opportunities to gather together, and as capacity limits for our venues continue to increase, our company, with its unique collection of live entertainment assets, will be well-positioned to meet this pent-up demand. Looking ahead, we also believe the MSG Networks transaction would further strengthen our portfolio and help set the stage for long-term value creation for all shareholders.”