Getty Images Madison Square Garden (MSG) Sports has posted US.1 million in revenue for its fiscal first quarter of 2023, a 28 per cent, US.3 million increase year-over-year (YoY).
The owner of the National Basketball Association’s (NBA) New York Knicks and National Hockey League’s (NBA) Rangers cited solid sponsorship demand for the revenue uptick, this was both in terms of signing new deals, as well as agreeing partnership renewals.
Similarly, the extensions and sales of suite licenses were also strong for the quarter, increasing by US.5 million compared to the prior year period.
Preseason ticket-related revenues went up by US.1 million compared to the last year, due to a higher average per-game revenue.
There was also an increase in league distribution revenue by US0,000.
Meanwhile, the company also stated that the combined average season ticket renewal rates for both the Knicks and Rangers are in excess of 90 per cent for the 2022/23 seasons.
It also said that the revenue from new season ticket packages remains robust, as well as forecasting continued growth in both local and national media rights fees in fiscal 2023.
However, overall MSG Sports posted an adjusted operating loss of US.3 million, which was an improvement of three per cent from the same time last year.
The losses were driven by the increase in selling, general and administrative costs, which went up by US11.6 million.
MSG Sports said this was largely down to higher employee compensation and related benefits, which reflected the business’ return to normal operations after the pandemic.
MSG executive chairman James Dolan said: “With the start of the Knicks’ and Rangers’ seasons, we are seeing last year’s strong results and operating momentum carry over into fiscal 2023. “We remain confident in the strength of our business and believe we are well positioned to generate long-term shareholder value, including through our imminent special dividend and share repurchase program.” The results come after MSG Sports announced it planned to return about US0 million to shareholders.