MSG Entertainment shares rally after earnings beat expectations

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Shares of Madison Square Garden Entertainment Corp. MSGE,
+ 7.80%
rose 2.0% in pre-market trading on Monday, after the live entertainment company, which includes Madison Square Garden, Radio City Music Hall and the Chicago Theater, recorded a fourth quarter tax loss, but said revenues above expectations due to capacity restrictions related to the COVID-19 pandemic have been lifted in several US markets. Net loss for the quarter as at June 30 was $ 117.8 million, or $ 4.87 per share, after net income of $ 126.6 million, or $ 5.27 per share, during the period of the previous year. The FactSet consensus for losses per share was $ 3.26. Revenue increased 11-fold to $ 99.8 million, from $ 9.0 million, and topped the FactSet consensus by $ 71.5 million. The company said that MSG Networks, which it acquired on July 9, after the quarter ended, had revenue for the quarter ended June 30 of $ 166.1 million and operating income of $ 58.4 million. “[W]As we continue to operate in a fluid environment, we remain cautiously optimistic as we prepare to meet pent-up demand for live experiences and, following the acquisition of MSG Networks, move forward with greater scale and flexibility. financial support to pursue growth opportunities and deliver long-term shareholder value, ”said Chief Executive Officer James Dolan. The stock has fallen 32.5% in the past three months through Friday, while the S&P 500 SPX,
+ 0.83%
gained 6.9%.

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