Madison Square Garden Entertainment Corp. reported fiscal 2026 first‑quarter revenue of $158.3 million, up 14% from $138.7 million in the same period a year earlier. The increase was driven by a 14% rise in entertainment‑offering revenue to $131.3 million, largely from a record number of concerts at Madison Square Garden Arena, and a 20% jump in food, beverage and merchandise sales to $22.8 million, reflecting higher per‑event spend by attendees.
Operating loss widened to $29.7 million, a $11.2 million increase over the $18.5 million loss reported in fiscal 2025 Q1. The primary cause was a $13.8 million impairment of long‑lived assets, coupled with a 7% rise in selling, general and administrative expenses. While the impairment is a one‑time charge, the higher SG&A indicates ongoing investment in venue upgrades and marketing to sustain the high demand for live events.
Adjusted operating income improved to $7.1 million, up $5.2 million from $1.9 million in the prior year quarter. The lift reflects stronger revenue growth and better cost control in core segments, offsetting the impairment hit. The company’s share‑repurchase program added $25 million in new buybacks, bringing total repurchases since the spin‑off to roughly $205 million, underscoring management’s confidence in the business’s valuation.
CEO James L. Dolan said the company is “seeing strong momentum across our business, including for bookings and this year’s Christmas Spectacular production.” The statement signals optimism about continued demand for marquee events and a solid foundation for future growth, especially as the Knicks and Rangers begin their 2025‑26 seasons at the Garden and the 215‑performance Christmas Spectacular launches at Radio City Music Hall.
Analysts had expected an earnings per share of –$0.67 and revenue of $149.68 million. The company delivered an EPS of –$0.46, a beat of $0.21 or 31% above consensus, and revenue that exceeded estimates by $8.62 million or 5.8%. The positive market reaction was driven by the strong earnings beat and the company’s ability to grow revenue while improving adjusted operating income, reinforcing investor confidence in MSGE’s live‑event model.
The results suggest that, despite the one‑time impairment, MSGE’s core business remains resilient. Record concert activity and higher ancillary sales are offsetting the impact of higher SG&A, and the company’s share‑repurchase program signals a belief that the stock is undervalued. Management’s outlook points to continued confidence in both revenue and adjusted operating income growth for fiscal 2026, indicating a positive trajectory for the company’s live‑event portfolio.
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