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NEW YORK - Madison Square Garden Sports Corp. (NYSE:MSGS) reported better-than-expected fiscal fourth quarter revenue on Tuesday, despite posting a loss as the company dealt with fewer playoff games and reductions in local media rights fees.
The company’s shares edged up 0.58% in after hours trading following the results.
The sports company, which owns the New York Knicks and New York Rangers, reported a fourth-quarter loss of $0.07 per share, beating analyst expectations for a loss of $0.14 per share. Revenue came in at $204 million, significantly above the consensus estimate of $164.25 million, though down 10% from $227.3 million in the same quarter last year.
The revenue decline was primarily attributed to lower playoff-related revenues, as the Rangers failed to qualify for the playoffs this year compared to playing eight home playoff games last year. This was partially offset by the Knicks’ deep playoff run to the Eastern Conference Finals, which included nine home playoff games.
"Fiscal 2025 was highlighted by growth in per-game revenues and the Knicks’ postseason run to the Eastern Conference Finals, while it also reflected our investment in our teams and the changing local media landscape," said James L. Dolan, Executive Chairman and CEO of Madison Square Garden Sports.
The company reported an operating loss of $22.6 million for the quarter, compared to operating income of $52.3 million in the prior year period. Direct operating expenses increased 44% to $154.8 million, largely due to higher provisions for team personnel transactions and league revenue sharing.
For the full fiscal year 2025, MSG Sports generated revenues of $1.04 billion, a slight increase of 1% YoY, while operating income fell 90% to $14.8 million compared to $146 million in the prior year.
The company also noted that in June, it amended media rights agreements with MSG Networks (NYSE:MSGN), which included reductions in annual rights fees payable to the Knicks and Rangers by 28% and 18% respectively, effective January 1, 2025.
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