MSG Entertainment (MSGE) Investor Presentation summary

Company overview and strategic positioning

• MSG Entertainment operates five iconic venues in New York and Chicago, hosting over 960 live events and 6.3 million guests in fiscal 2024.

• The company owns or leases valuable real estate, including Madison Square Garden, Radio City Music Hall, Beacon Theatre, The Theater at MSG, and The Chicago Theatre.

• MSG Entertainment is a market leader in the New York metro area, the top U.S. concert market, with a strong presence among tourists and Fortune 500 companies.

• The business was spun off from Sphere Entertainment Co. in April 2023, creating a pure-play live entertainment company.

• The company leverages deep industry relationships, a promoter-agnostic approach, and a large proprietary customer database to drive bookings and repeat visitation.

Financial performance and capital allocation

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

• Adjusted operating income (AOI) for fiscal 2024 was $211.5 million, with operating income at $111.9 million.

• As of June 30, 2024, total debt outstanding was $626 million, with net debt of $592 million and net debt leverage at 2.8x AOI.

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

• The company focuses on debt paydown, opportunistic capital returns, and maintains strong cash flow generation, with minimal cash tax obligations through FY2025.

Key assets and growth drivers

• Madison Square Garden and Radio City Music Hall are the #1 grossing venues of their size globally, while Beacon Theatre and The Chicago Theatre are also top-ranked.

• The Christmas Spectacular starring the Radio City Rockettes remains a core asset, celebrating 90 years and consistently drawing over 1 million paid attendees annually.

• Long-term arena license agreements with MSG Sports for the Knicks and Rangers provide stable revenue, with 35-year deals and 3% annual escalators.

• Premium hospitality offerings include over 100 exclusive products, with ongoing suite renovations and new event-level club spaces to drive growth.

• Multi-year marketing partnerships and sponsorships, including with major brands, represent a significant and growing revenue stream.