Madison Square Garden Q4 Profit Falls, Despite Revenue Growth - Update

(RTTNews) - Madison Square Garden Co. (MSG) Wednesday reported a fall in the fourth-quarter profit, hurt by higher operating expenses. Revenues, however, climbed 10 percent and beat analysts' estimates, mainly due to revenue growth in MSG Entertainment and MSG Sports segments.

For the fourth quarter, the company's net income fell to $11.64 million or $0.15 per share from $36.42 million or $0.47 per share in the previous year.

On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.

Madison Square Garden operates in the sports, entertainment, and media businesses. The company owns the New York Knicks and New York Rangers, among other sports teams, and runs venues including Madison Square Garden and the Beacon Theatre.

Revenues for the quarter climbed 10 percent to $371.67 million from $336.36 million last year. Analysts estimated revenues of $348.78 million for the quarter.

MSG Entertainment revenues surged 62 percent to $56.5 million, helped mainly by higher event-related revenues at all of the company's venues, led by Theater at Madison Square Garden, Madison Square Garden Arena, the Forum and The Chicago Theatre, as well as higher venue-related sponsorship and signage and suite rental fee revenues.

MSG Sports revenues were $156.8 million, up 11 percent from last year. MSG Media revenues slightly decreased to $176.4 million.

Direct operating expenses advanced to $217.34 million from $164.67 million in the preceding year. Selling, general and administrative expenses were $104 million, up from $80.91 million a year ago. Depreciation and amortization was $30.08 million, compared to $24.69 million last year.

President and CEO Tad Smith said, "Over the course of fiscal 2014, we strengthened our Company's foundation in many ways, which should benefit MSG for years to come. This includes the successful completion of the Transformation project and the reinvention of the Forum."

MSG closed Tuesday's regular trading at $62.84 on the Nasdaq.