Q4 2024 Madison Square Garden Sports Corp Earnings Call Transcript
Key Points
- Madison Square Garden Sports Corp (MSGS) generated record revenues of over $1 billion and adjusted operating income of $172 million for fiscal 2024.
- Both the Knicks and Rangers had successful seasons, with the Rangers reaching the Eastern Conference final and the Knicks advancing to the Eastern Conference semifinals.
- The company saw strong fan engagement, with a combined season ticket renewal rate of approximately 94% for the Knicks and Rangers.
- Merchandise revenue hit new highs, driven by successful partnerships with premium brands and new product offerings.
- The company has a strong balance sheet with a cash balance of approximately $89 million and has paid down significant debt, including $55 million under the Rangers' revolving credit facility.
- The evolving sports media landscape, including the reduction in the number of exclusive telecasts available to regional sports networks, poses challenges for MSG Networks and local media rights revenue.
- National and local media rights fees decreased by 1% due to a reduction in the number of exclusive games made available to MSG Networks.
- The company faces significant debt maturity for MSG Networks in October, adding financial uncertainty.
- Despite strong financial performance, the company decided not to increase season ticket prices for renewing holders, potentially limiting immediate revenue growth.
- The company is still evaluating the potential impact of the new NBA national media rights agreements on local media rights revenue, which could partially offset the increase in national media rights revenue.
Good morning. Thank you for standing by and welcome to the Madison Square Garden Sports Corp. Fiscal 2024 fourth-quarter and year end earnings conference call. (Operator instructions) I would now like to turn the call over to Ari Danes, Investor Relations. Please go ahead.
Thank you, operator. Good morning, and welcome to MSG Sports fiscal 2024 fourth-quarter and year-end earnings conference call. Our Chief Operating Officer, Jamaal Lesane will begin this morning's call with an update on the company's strategy and operations. This will be followed by a review of our financial results with Victoria Mink, our EVP, Chief Financial Officer and Treasurer.
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
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