NEW YORK, Aug. 14, 2020 (GLOBE NEWSWIRE) — Madison Square Garden Sports Corp. (NYSE: MSGS) today reported financial results for the fourth quarter and fiscal year ended June 30, 2020. On April 17, 2020, The Madison Square Garden Company completed the spin-off of its entertainment businesses into a new company named Madison Square Garden Entertainment Corp. (“MSG Entertainment”) and changed its name to Madison Square Garden Sports Corp. (“the Company” or “MSG Sports”).
For all periods through the date of the spin-off, the financial results of the entertainment businesses previously owned and operated by the Company through its MSG Entertainment segment, as well as the sports booking business previously owned and operated by the Company through its MSG Sports segment, are reflected as discontinued operations. In addition, results from continuing operations through April 17, 2020 include certain corporate overhead expenses that the Company did not incur after the spin-off date and does not expect to incur in future periods, but did not meet the criteria for inclusion in discontinued operations. The financial results of the Company for the period after the spin-off date (April 18, 2020 through June 30, 2020) reflect the Company’s results on a standalone basis.
Results for the fourth quarter and fiscal year ended June 30, 2020 reflect the impact of the COVID-19 pandemic. When the NBA and NHL regular seasons were suspended in March, the Knicks had 16 games remaining, including eight home games; and the Rangers had 12 games remaining, including five home games. Both leagues have resumed play, and while the Knicks were not part of the NBA’s re-start in the Orlando bubble, the Rangers were part of the NHL’s return in the hub cities of Toronto and Edmonton. Based on the completion of the 2019-20 seasons, the Company would recognize both NBA and NHL national media rights fees related to those seasons in the first quarter of fiscal 2021.
For fiscal 2020, the Company generated $603.3 million in revenues, a 17% decrease as compared to the prior year. In addition, the Company had an operating loss of $93.9 million and an adjusted operating loss of $27.5 million, compared to an operating loss of $58.2 million and adjusted operating income of $11.2 million in the prior year.(1)
On a pro forma basis for fiscal 2019, which was the last full fiscal year of operations before the impact of the COVID-19 pandemic, the Company generated $695.3 million in revenues, $25.4 million in operating income and $95.5 million in adjusted operating income.(1)(2)
For the fiscal 2020 fourth quarter, the Company reported negative revenues of $7.0 million, as compared to revenues of $68.2 million in the prior year quarter. In addition, the Company had an operating loss of $44.9 million and an adjusted operating loss of $33.6 million in the fiscal 2020 fourth quarter, compared to an operating loss of $56.0 million and an adjusted operating loss of $38.3 million in the prior year quarter.
Madison Square Garden Sports Corp. President and CEO Andrew Lustgarten said: “We remain confident in our Company’s future prospects and are comfortable that we have the financial flexibility to navigate through this period of uncertainty. The strong response from fans to the return of the NBA and NHL this summer has, once again, reminded us of the power and popularity of sports. And with a portfolio that features some of the most recognized brands in professional sports, we believe our business is well-positioned to drive long-term growth and value creation for our shareholders.”