NEW YORK, N.Y., October 27, 2022 – Madison Square Garden Sports Corp. (NYSE: MSGS) today reported financial results for the fiscal first quarter ended September 30, 2022.
The Company is off to a strong start to the fiscal year. With the New York Knicks (“Knicks”) and New York Rangers (“Rangers”) 2022-23 regular seasons now underway, the Company continues to experience positive operating momentum across its key revenue categories, with highlights this fiscal year so far including:
- Combined average season ticket renewal rates for the Knicks and Rangers are in excess of 90% for the 2022-23 seasons while sales of new season ticket packages also remain strong;
- The Company continues to benefit from solid sponsorship demand, recently welcoming new signature partner HUB International, while also reaching extensions with signature marketing partners Spectrum and Verizon, as well as with other partners including Dunkin’ Brands and Jägermeister;
- Renewals and new sales of suite licenses at the Madison Square Garden Arena (“The Garden”) remain robust, with the majority of suites under multi-year agreements; and
- The Company anticipates continued growth in both local and national media rights fees in fiscal 2023 due to ongoing annual contractual rate escalators.
In light of the Company’s strong financial performance in fiscal 2022 and the trading price of its common stock relative to the intrinsic value of its professional sports teams, the Company recently announced plans to return approximately $250 million to shareholders. On October 6, 2022, the Company’s Board of Directors declared a special, one-time cash dividend of $7.00 per share (approximately $175 million), which is payable on October 31, 2022 to the Company’s shareholders of record on October 17, 2022. The Board of Directors also authorized a $75 million accelerated share repurchase program, which the Company intends to execute over the near-term.
For the fiscal 2023 first quarter, the Company generated revenues of $24.1 million, an increase of $5.3 million, or 28%, as compared to the prior year period. In addition, the Company reported an operating loss of $35.9 million, an increase of $1.0 million, or 3%, and an adjusted operating loss of $27.3 million, an improvement of $0.9 million, or 3%, both as compared to the prior year period.(1)
Madison Square Garden Sports Corp. Executive Chairman James L. Dolan said, “With the start of the Knicks’ and Rangers’ seasons, we are seeing last year’s strong results and operating momentum carry over into fiscal 2023. We remain confident in the strength of our business and believe we are well positioned to generate long-term shareholder value, including through our imminent special dividend and share repurchase program.”