The Madison Square Garden Company (MSG) Beats on Earnings, Revenue

Shares of The Madison Square Garden Company (MSG) were up +2.15 or +2.81 percent to $78.57 per share in Thursday's premarket after the company released results for its fiscal fourth, which beat market expectations by a wide margin. Madison Square Garden stock closed at $76.42, down -1.77 or -2.26 percent in Wednesday's regular trading session.

New York City based The Madison Square Garden Company is a holding company specializing in the sports and entertainment businesses running operations through direct and indirect subsidiaries.
The company was founded in 2010 after Cablevision spun off the New York Rangers hockey team, the New York Knicks basketball team, the MSG Network, Madison Square Garden arena and the Radio City Music Hall in Manhattan. The company also owns the Chicago and Beacon Theatres, the Hartford Wolf Pack and the Westchester Knicks among other sports and entertainment assets.

The company is run through three divisions MSG Sports, which operates the company sports teams; MSG Media, a division in charge of the company's cable channels; and MSG Entertainment, which is in charge of coordinating live events at the company's numerous sports and entertainment venues.

Madison Square Garden reported it had earned $45.7 million or +$0.60 per share in the company's fourth quarter ended on June 30th. This compares to $11.6 million or $0.15 per share in the same period one year ago.

Revenue for the quarter rose to $387.9 million compared to $371.7 million last year, an increase of four percent. Analysts expected the company to report earnings per share of $0.38 on revenue of $360 million.

Madison Square Garden's President and Chief Executive Officer David O'Connor said in the company's press release that, "The Company delivered strong financial results for both the fourth quarter and fiscal 2015 driven by ongoing demand for our portfolio of media, sports and entertainment assets and brands. We have made significant progress with respect to the proposed spin-off of our sports and entertainment businesses from our media business, and remain confident that this transaction will set the stage for continued growth and value creation."

The company reported full fiscal 2015 revenues of about $1.62 billion, an increase of +4 percent over 2014, with improvements in all three segments. Also, Madison Square Garden reported record adjusted operating cash flow of $436.9 million, an increase of +40 percent over the previous year, which was attributed to improved results in the MSG Sports and MSG Entertainment segments. The results were partially offset by an increase in unallocated corporate expenses.

Madison Square Garden stock has been under pressure since trading as high as $87 in late May. Despite the stellar results, this morning's premarket action shows the stock reluctant to trade higher, which could be due to general market sentiment. Nevertheless, analysts are positive on the stock, with a consensus of an $89.00 price target.

Other News About MSG

The Madison Square Garden Company Appoints John Sykes to Board of Directors

Sykes is currently President of iHeart Media Inc. and has 30 years in the media and entertainment businesses.

Madison Square Garden Could Spinoff Sooner Than Originally Thought

Proposed spinoff could occur by the end of the fourth quarter of this year.
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Published on Aug 20, 2015
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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