The Madison Square Garden Co (NASDAQ:MSG) reported strong financial results for the quarter ended September 30. The company recently announced that its board of directors is considering separating its live entertainment and sports & media businesses into two publicly-traded companies.
Financial results
The Madison Square Garden Co (NASDAQ:MSG) said its revenue increased 12% to $241.7 million, higher than the $223.7 million consensus estimate of Wall Street analysts.
The company said its net income rose to $108.1 million of $1.38 in earnings per share compared with its $23.9 million net income or $0.31 in earnings per share in the same period a year ago.
The Madison Square Garden Co (NASDAQ:MSG) said its adjusted operating cash flow (AOCF) went up 16% to $76.2 million due to improved AOCF in its MSG Entertainment and MSG Sports segments. Its operating income was $197.4 million, up by $157.5 million due to a significant pre-tax gain from the sale of Fuse.
Segment revenues
The Madison Square Garden Co (NASDAQ:MSG) said its MSG Media posted $142.7 million in revenue, down 14% during the quarter. Its affiliation fee revenue declined $13.9 million due to the absence of affiliation fee revenue from Fuse. Its advertising revenue also declined $10.1 million during the period.
The company’s MSG Entertainment segment achieved a 128% increase in revenue to $65.2 million due to higher-event related sales and venue-related sponsorship, signage and suite rental fee revenues at The Garden, The Forum and The Theater at Madison Square Garden.
Its MSG Sports segment delivered a 40% increase in revenue to $53.5 million due to higher suite rental fee revenue, sports team pre/regular season ticket-related revenue, event-related revenues among others.
Madison Square Garden nominates Nelson Peltz to its board
Tad Smith, president and CEO of The Madison Square Garden Co (NASDAQ:MSG) expressed optimism regarding the company’s plan to separate its businesses. According to him, each new company would have its distinctive value proposition for investors.
“We are optimistic that this transaction will improve upon the shareholder return created since MSG’s spin-off over four years ago,” said Smith.
The Madison Square Garden Co (NASDAQ:MSG) nominated activist investor Nelson Peltz of Trian Fund Management LP and Scott Sterling of private equity firm, Thomas H. Lee Partners to its board of directors.
