Spin-off of Entertainment Businesses Completed in April
Fiscal 2020 Third Quarter Marks Last Quarter of Combined Sports and Entertainment Results
NEW YORK, N.Y., May 11, 2020 – Madison Square Garden Sports Corp. (NYSE: MSGS) today reported financial results for the fiscal third quarter ended March 31, 2020. On April 17, 2020, The Madison Square Garden Company completed the spin-off of its entertainment businesses into a new company called Madison Square Garden Entertainment Corp. and changed its name to Madison Square Garden Sports Corp. (“the Company”). As a result of the timing of the spin-off, the Company’s fiscal 2020 third quarter consolidated results include the financial results of both the sports and entertainment businesses. Since this does not reflect the results of Madison Square Garden Sports Corp. on a standalone basis, the Company has elected not to host a conference call to discuss this quarter’s financial results, but does anticipate hosting a fiscal 2020 year-end earnings conference call.
Results for the fiscal 2020 third quarter include the impact of the COVID-19 pandemic which, in March 2020, led to the suspension of the 2019-20 NBA and NHL seasons and the temporary closure of the Company’s venues. In addition, the impact of the pandemic on Tao Group Hospitality resulted in significant non-cash impairment charges, which are included in the Company’s fiscal 2020 third quarter operating loss. (1) On a reported basis, the Company generated fiscal 2020 third quarter revenues of $424.0 million, a decrease of 18%, an operating loss of $135.2 million, a decrease of $173.7 million, and adjusted operating income of $11.6 million, a decrease of $72.5 million, all as compared to the prior year quarter. (2)
Madison Square Garden Sports Corp. President and CEO Andrew Lustgarten said, “We successfully completed the spin-off of the entertainment businesses, which also marked the start of our next chapter as a standalone sports company. Despite the unprecedented challenges facing our industry, we are confident in the strength of our assets, and believe that we are well-positioned to continue building on our track record of creating long-term value for our shareholders.”