Madison Square Garden Sports (MSGS) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 delivered record revenues of $1.03 billion, up 16% year-over-year, and adjusted operating income (AOI) of $172.2 million, both surpassing prior year results.

• Operating income reached $146.0 million, a 71% increase year-over-year, with a 14.2% operating margin.

• Strong team performance, with the Rangers winning the Presidents' Trophy and the Knicks achieving their best regular season in a decade, drove robust business results.

• High fan engagement was evident in ticket sales, in-arena spending, and social media growth.

Financial highlights

• Fiscal 2024 net income was $58.8 million, up from $47.8 million in 2023; Q4 net income was $25.5 million compared to a loss of $9.3 million in Q4 2023.

• Q4 revenues were $227.3 million, up 79% year-over-year; Q4 operating income was $52.3 million versus a loss in the prior year quarter.

• Event-related revenues in Q4 rose 116% to $152.1 million; suites, sponsorship, and signage revenues increased 71% to $34.7 million.

• Playoff-related revenues in Q4 were $128 million, up from $56.2 million in the prior year.

• Basic EPS for fiscal 2024 was $2.45, up from $1.90 in 2023; Q4 basic EPS was $1.06 versus a loss of $0.39 in Q4 2023.

Outlook and guidance

• Season ticket renewal rates for 2024-2025 are approximately 94%.

• No increase in season ticket prices for renewing holders, but new and flexible ticket packages will be opportunistically priced.

• Expectation of modest ticket revenue growth in fiscal 2025, with continued evaluation of ticket yield.

• Anticipated benefit from expanded premium hospitality offerings and suite renovations.

• Management expressed confidence in the long-term value generation potential of its professional sports franchises, citing robust demand and successful team performance.