Overview

* Madison Square Garden Q4 revenue falls 10% yr/yr but beats analyst expectations

* Adjusted operating loss for Q4 misses analyst estimates, per LSEG data

* Knicks' playoff run boosts per-game revenue despite fewer games overall

Outlook

* MSG Sports anticipates strong demand for Knicks and Rangers

* Company expects continued value from owning two sports franchises

* MSG Sports sees changing local media landscape impacting future results

Result Drivers

* PLAYOFF REVENUE DROP - Lower playoff-related revenues due to the Rangers not qualifying for playoffs, partially offset by higher per-game Knicks playoff revenue and more Knicks home playoff games

* MEDIA RIGHTS FEES - Reductions in local media rights fees impacted revenues following amendments to Knicks and Rangers agreements with MSG Networks

* OPERATING EXPENSES INCREASE - Direct operating expenses rose 44% due to higher team personnel costs and provisions, partially offset by lower playoff-related expenses

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Beat $204 mln $154.50

Revenue mln (5

Analysts

)

Q4 Net -$1.78

Income mln

Q4 Miss -$16.80 -$1.74

Adjusted mln mln (4

Operatin Analysts

g Income )

Q4 $154.82

Operatin mln

g

Expenses

Q4 -$22.60

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the entertainment production peer group is "buy"

* Wall Street's median 12-month price target for Madison Square Garden Sports Corp ( MSGS ) is $270.00, about 25% above its August 11 closing price of $202.48

* The stock recently traded at 247 times the next 12-month earnings vs. a P/E of 205 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)