MSG Entertainment (MSGE) Investor Presentation summary

Company overview and strategic positioning

• MSG Entertainment became a standalone live entertainment company after its April 2023 spin-off from Sphere Entertainment Co., distributing 67% of shares to shareholders and retaining 33% until September 2023.

• Operates five iconic venues: Madison Square Garden, Radio City Music Hall, The Theater at MSG, Beacon Theatre, and The Chicago Theatre, hosting over 960 live events and 6.3 million guests in fiscal 2024.

• Holds a leading presence in the New York City metro area, the top U.S. concert market, with access to a population of 23 million and over 61 million annual tourists.

• Owns or leases valuable real estate, including long-term leases for Radio City Music Hall (expiring 2038) and Beacon Theatre (expiring 2036), both with renewal options.

• Maintains 35-year arena license agreements with MSG Sports for the Knicks and Rangers, including revenue and profit-sharing, with 3% annual escalators.

Financial performance and capital allocation

• Fiscal 2024 revenue reached $959.3 million, up 13% year-over-year, with a diversified base: 48% ticketing/venue license fees, 26% sponsorship/signage/suites, 17% food/beverage/merchandise, and 8% arena license agreements.

• Operating income for fiscal 2024 was $111.9 million, with adjusted operating income (AOI) of $211.5 million.

• Ended Q3 2024 with $677 million in total debt, $37 million in unrestricted cash, and net debt leverage of 3.0x AOI.

• $140 million in Class A shares repurchased since April 2023, with $110 million remaining under the current authorization.

• Fiscal 2024 capital expenditures totaled $24 million, and net interest payments were $51 million.

Key business drivers and growth opportunities

• Christmas Spectacular starring the Radio City Rockettes remains a core asset, with over 90 years of tradition, strong attendance, and revenue resilience.

• World-class venues consistently rank among the top-grossing in their size categories globally, according to Billboard Magazine.

• Strong marketing partnerships and multi-year sponsorships with major brands drive recurring revenue and offer cross-selling opportunities with MSG Sports.

• Premium hospitality offerings, including over 100 exclusive products and suites, are primarily licensed to corporate customers, with new event-level suites added in FY24.

• Focused on growing per-event revenue, increasing venue utilization, and leveraging a large proprietary customer database for tailored offerings and cross-promotion.