NEW YORK, Feb. 01, 2019 (GLOBE NEWSWIRE) — The Madison Square Garden Company (NYSE: MSG) today reported financial results for the second quarter ended December 31, 2018.
Effective July 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (ASC Topic 606), the new accounting standard for revenue recognition. The most significant impact of ASC Topic 606 in fiscal 2019 is a change in the timing of when certain Company revenue streams and professional sports team-related fulfillment expenses are recognized during the fiscal year. Prior period results have not been restated to reflect the adoption of ASC Topic 606 and, therefore, the Company’s consolidated and segment results for the fiscal 2019 second quarter are not directly comparable to the results for the second quarter of fiscal 2018.
For the fiscal 2019 second quarter, the Company generated revenues of $632.2 million, operating income of $78.3 million and adjusted operating income of $130.4 million.(1)(2)
Excluding the impact of ASC Topic 606, fiscal 2019 second quarter revenues would have been $593.6 million, an increase of 11% as compared with the prior year period. In addition, fiscal 2019 second quarter operating income would have been $46.8 million, a decrease of 36%, and adjusted operating income would have been $98.9 million, a decrease of 17%, both as compared to the prior year period.(3)
Fiscal 2019 second quarter results on a reported basis, as well as excluding the impact of ASC Topic 606, both include $40.8 million in net provisions for certain team personnel transactions, as compared to $2.8 million in the prior year quarter.
Executive Chairman and CEO Jim Dolan said, “Demand for our core assets and brands drove solid second quarter financial results, including strong growth across bookings, the Christmas Spectacular, sponsorship and signage and media rights. At the same time, we continue to make progress on two strategic priorities for our Company – our proposed Sports business spin-off and our MSG Sphere venues. Looking ahead, we remain confident that our Company is positioned to deliver long-term growth and value creation for shareholders.”