Madison Square Garden Sports Corp. (NYSE:MSGS) posted fiscal fourth-quarter revenue that topped analyst expectations on Tuesday, even as the company recorded a loss due to fewer playoff games and reduced local media rights fees. Shares rose 0.58% in after-hours trading after the announcement.
The owner of the New York Knicks and New York Rangers reported a quarterly loss of $0.07 per share, narrower than the $0.14 per-share loss projected by analysts. Revenue totaled $204 million, well ahead of the $164.25 million consensus, but down 10% from $227.3 million in the same period a year earlier.
The year-over-year decline in revenue stemmed mainly from lower playoff-related income. The Rangers missed the playoffs entirely this year, compared with eight home playoff games in the prior season. This was partially offset by the Knicks’ advance to the Eastern Conference Finals, which featured nine home playoff games.
“Fiscal 2025 was highlighted by growth in per-game revenues and the Knicks’ postseason run to the Eastern Conference Finals, while it also reflected our investment in our teams and the changing local media landscape,” said James L. Dolan, Executive Chairman and CEO of Madison Square Garden Sports.
For the quarter, the company posted an operating loss of $22.6 million, compared to $52.3 million in operating income a year ago. Direct operating expenses surged 44% to $154.8 million, driven primarily by increased costs related to player transactions and league revenue sharing.
On a full-year basis, MSG Sports generated $1.04 billion in revenue, up 1% from fiscal 2024, while operating income dropped sharply to $14.8 million from $146 million the prior year.
In June, the company amended its media rights agreements with MSG Networks (NYSE:MSGN), reducing the annual rights fees payable to the Knicks by 28% and to the Rangers by 18%, effective January 1, 2025.
Madison Square Garden Sports Corp stock price
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