Madison Square Garden Entertainment FY2025 slides: Revenue hits $942.7M, AOI grows

Madison Square Garden Entertainment Corp. (NYSE:MSGE) presented its fiscal year 2025 results and business overview on August 13, 2025, highlighting strong venue performance and solid financial results despite challenges in the concert market. The company’s stock has shown resilience, trading at $40.22 as of August 12, 2025, up 3.31% and well above its 52-week low of $28.29.

Executive Summary

Madison Square Garden Entertainment reported fiscal year 2025 revenue of $942.7 million and adjusted operating income (AOI) of $222.5 million. The company’s portfolio includes five iconic venues across New York and Chicago that hosted over 975 live events and welcomed nearly 6 million guests during the fiscal year. Despite a Q3 EPS miss of $0.17 versus the forecasted $0.43, MSGE’s diversified revenue streams and strong venue performance have maintained investor confidence.

As shown in the following image highlighting the company’s key investment propositions:

The company’s business model leverages world-class entertainment venues, the enduring popularity of the Christmas Spectacular, and a leading presence in the New York market to drive profitable growth and potential for ongoing capital returns.

Detailed Financial Analysis

MSGE reported a diversified revenue base for fiscal 2025, with ticketing and venue license fees accounting for 48% of total revenue, followed by sponsorship, signage, and suites at 27%, food, beverage, and merchandise at 16%, arena license agreements at 8%, and other sources at 1%.

The company’s financial performance is illustrated in the following breakdown:

Operating income for fiscal 2025 reached $122.1 million, while adjusted operating income totaled $222.5 million. The reconciliation between these figures includes adjustments for depreciation and amortization ($57.8 million), impairment of long-lived assets ($11.2 million), and share-based compensation ($27.7 million), among other items.

MSGE’s balance sheet shows a total debt outstanding of $609 million, with unrestricted cash and cash equivalents of $43 million, resulting in net debt of $566 million and a net debt leverage ratio of 2.5x. The company has demonstrated strong cash flow generation with FY2025 AOI of $222.5 million, net interest payments of $45 million, and capital expenditures of $22 million.

The following balance sheet snapshot provides further details:

In its Q3 FY2025 earnings call, MSGE reported revenue of $242.5 million, exceeding expectations of $231.87 million, though EPS fell short at $0.17 versus the forecasted $0.43. Despite this miss, the stock rose 5.09% in pre-market trading, reflecting investor confidence in the company’s overall trajectory.

Venue Portfolio and Performance

MSGE’s portfolio includes some of the most recognized entertainment venues in the United States. The company provided key statistics about its venue operations:

Madison Square Garden, described as "The World’s Most Famous Arena," is ranked as the #2 grossing venue of its size globally. The company also owns or operates Radio City Music Hall (#1 grossing venue of its size), the Beacon Theatre (#2 in its size category), and The Chicago Theatre (#4 in its size category).

A particularly strong performer in the company’s portfolio is the Christmas Spectacular Starring the Radio City Rockettes, which has been a New York holiday tradition for over 90 years. The show has demonstrated remarkable resilience and growth:

The Christmas Spectacular achieved paid attendance of 1.1 million in FY2025, returning to pre-pandemic levels. According to the Q3 earnings call, the company plans to expand to 211 shows in 2025, with advanced ticket sales up 60% in gross revenue.

Strategic Initiatives

MSGE has positioned itself as a leader in live entertainment through three key strategic approaches, as illustrated below:

The company’s presence in the New York City metro area provides significant advantages, including access to a population of over 23 million, more than 64 million annual tourists, and the highest concentration of Fortune 500 companies in the United States. New York is also ranked as the #1 concert market in the U.S.

Another key strategic asset is MSGE’s long-term arena license agreements with MSG Sports for hosting New York Knicks and Rangers games. These 35-year deals, which began in FY2021, provide a stable revenue stream through 88 pre/regular season games per year.

The company has also maintained strong marketing partnerships with major brands, creating a solid base of recurring revenue. As shown in the following image:

Forward-Looking Statements

Looking ahead, MSGE is on track for mid-to-high single-digit AOI growth in FY2025, according to its earnings call. The company’s fiscal 2026 concert bookings are pacing ahead, with potential for a record concert quarter at Madison Square Garden.

The company continues to focus on capital allocation priorities, including debt paydown and share repurchases. Since April 2023, MSGE has repurchased $180 million in shares, with $70 million remaining in its authorization.

Despite these positive indicators, management acknowledged challenges in the concert market during the Q3 earnings call. The company also faces potential implications from the Penn Station project and economic pressures that may affect consumer spending on entertainment.

CFO David Collins emphasized the company’s commitment to shareholder value, stating, "We will continue to explore ways to opportunistically return capital to shareholders." With its iconic venues, diversified revenue streams, and strategic positioning in key markets, Madison Square Garden Entertainment appears well-positioned to navigate industry challenges while capitalizing on the enduring demand for live entertainment experiences.

Full presentation:

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