Editor’s Note: We have updated the story with the latest estimates, which translate to a revenue beat. The estimates used in the original article were outdated.

Madison Square Garden Entertainment Corp. ( MSGE ) shares are trading lower after it reported third-quarter FY24 results.

Revenue rose 13% Y/Y to $228.3 million, beating the analyst consensus of $227.6 million. 

Revenues from entertainment offerings rose 13% Y/Y to $146.2 million, led by higher event-related revenues and revenues subject to the sharing of economics with MSG Sports pursuant to the Arena License Agreements. 

Food, beverage, and merchandise revenues increased 14% Y/Y to $45.4 million, aided by a higher number of concerts held at the venues and the impact of five more Knicks home games.

Event-related revenues increased $10.7 million compared to the prior year, aided by an increase in the number of concerts at the venues.

In addition, the company reported an adjusted operating income of $38.5 million, down 23% Y/Y, in the quarter, due to higher selling, general and administrative expenses. 

EPS $0.06 missed the consensus of $0.11.

As of March-end, cash and equivalents stood at $28.3 million.

Outlook: Madison Square Garden raised the lower end of FY24 sales guidance, revising the range to $940 million-$950 million (from $930 million-$950 million) vs. $942.40 million estimate.

Also, the company increased adjusted operating income outlook to $200 million-$210 million from $195 million-$205 million in FY24.

The company remains on track to achieve a low double-digit percentage increase in the number of bookings events in FY24.

Investors can gain exposure to the stock via Zacks Trust Zacks Small/Mid Cap ETF .

Price Action: MSGE shares are down 5.44% to $37.71 at the last check Thursday.