Q4 2024 Madison Square Garden Entertainment Corp Earnings Call Transcript
Key Points
- Madison Square Garden Entertainment Corp (MSGE) reported revenues of $959 million and adjusted operating income of $211.5 million for fiscal 2024, exceeding the high end of their guidance ranges.
- The company hosted approximately 6.3 million guests at over 960 live events, showing robust growth in the number of events held at their venues.
- The Christmas Spectacular production set a new record with nearly $150 million in revenue from over 1 million tickets sold across 193 performances.
- Strong demand for premium hospitality offerings, including new suite products, is expected to drive incremental revenue in fiscal 2025.
- The company anticipates a high single to low double digit percentage increase in adjusted operating income for fiscal 2025, driven by increased venue utilization and growing per event profitability.
- The company faces a tough comparison year-over-year due to the end of Billy Joel's residency, which will result in a revenue headwind as promoted deals are replaced by straight rentals.
- There is a headwind around corporate overhead due to a new office lease, which will create incremental SG&A expenses, particularly in the first half of fiscal 2025.
- The company's debt balance stands at approximately $626 million, with ongoing net interest payments related to their National Properties debt totaling $51 million in fiscal 2024.
- The fiscal fourth quarter results are not fully comparable on a year-over-year basis due to the company's spinoff from Sphere Entertainment, affecting the comparability of SG&A expenses.
- Despite strong performance, the company remains cautious about potential macroeconomic volatility and its impact on consumer demand for live entertainment experiences.
Good morning. Thank you for standing by, and welcome to the Madison Square Garden Entertainment Corp. fiscal 2024 fourth quarter and year-end earnings conference call. I would now like to turn the call over to Ari Danes, Senior Vice President, Investor Relations and Treasury. Please go ahead.
Thank you. Good morning, and welcome to MSG Entertainment's fiscal 2024 fourth quarter and year-end earnings conference call. On today's call, Mike Grau, our EVP and Chief Financial Officer, will provide an update on the company's operations and review our financial results for the quarter. After our prepared remarks, we will open up the call for questions. If you do not have a copy of today's earnings release, it is available in the Investors section of our corporate website.
Please take note of the following. Today's discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform
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