Why Madison Square Shares Are Rising Despite Playing Fewer Knicks And Rangers Games In Q2

Madison Square Garden Sports Corp. MSGS shares are trading higher on Tuesday.

The company reported a second-quarter fiscal 2024 revenue of $326.89 million, exceeding the Wall Street estimate of $325.72 million. Revenue, however, fell 8% year over year.

In the fiscal 2024 second quarter, the Knicks and Rangers played a combined nine fewer regular season home games. Higher local media rights fees and revenues from league distributions partially offset the decrease in revenues.

Quarterly earnings per share totaled $0.59, beating the estimate of $0.55.

Madison Square reported adjusted operating income of $37.0 million, a decrease of 43% year over year. 

Pre/regular season ticket-related revenues decreased $19.0 million, as compared to the prior year period, primarily due to the Knicks and Rangers playing fewer games.

Suite revenues decreased by $5.9 million compared to the prior year. Sponsorship and signage revenues decreased $5.8 million compared to the prior year period.

Local media rights fees increased by $2.0 million compared to the prior year period primarily due to contractual rate increases. 

The company exited the quarter with cash and equivalents worth $41.23 million.

Price Action: MSGS shares are trading higher by 4.65% to $190.28 on the last check Tuesday.

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