Company Exploring Potential Separation of Businesses into Two Distinct Public Companies Would Separate Live Entertainment and MSG Networks Businesses from MSG Sphere and Tao Group Hospitality
NEW YORK, N.Y., August 19, 2022 – Madison Square Garden Entertainment Corp. (NYSE: MSGE) (“MSG Entertainment”) today reported financial results for the fourth quarter and fiscal year ended June 30, 2022. While the Company completed the acquisition of MSG Networks on July 9, 2021, MSG Networks’ results are included on a combined basis with the Company for all periods presented.
The fiscal 2022 fourth quarter was highlighted by a robust calendar of events at the Company’s performance venues, including the conclusion of the New York Knicks (“Knicks”) and New York Rangers (“Rangers”) 2021-22 seasons at the Madison Square Garden Arena (“The Garden”). At the same time, MSG Networks concluded full regular season coverage of its five NBA and NHL professional sports teams followed by extensive programming around the Rangers’ postseason run, including telecasts of all first-round playoff games. In addition, Tao Group Hospitality benefited from ongoing demand in its key markets – led by Las Vegas and New York – leading to its highest quarter of revenue since capacity restrictions were broadly lifted last summer.
For fiscal 2022, the Company reported revenues of $1.7 billion as compared to revenues of $814.2 million in the prior year. In addition, the Company had an operating loss of $102.7 million and adjusted operating income of $133.6 million in fiscal 2022, compared to an operating loss of $188.2 million and adjusted operating income of $40.2 million in the prior year.(1)
For the fiscal 2022 fourth quarter, the Company reported revenues of $453.5 million as compared to $260.6 million in revenues in the prior year quarter. In addition, the Company had an operating loss of $56.8 million and adjusted operating income of $0.7 million in the fiscal 2022 fourth quarter, compared to an operating loss of $44.0 million and adjusted operating income of $2.5 million in the prior year quarter.(1)
Executive Chairman and CEO James L. Dolan said, “The past year demonstrated the resiliency of our business and the robust demand for our portfolio of live experiences. We continue to make significant progress on the construction of MSG Sphere in Las Vegas, which remains on track to open in the second half of calendar 2023. We are also now exploring a potential separation of our live entertainment and MSG Networks businesses from MSG Sphere and Tao Group Hospitality, which we believe would best position the two companies to drive long-term value for shareholders.”