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* Transcripts
MADISON SQUARE GARDEN ENTERTAINMENT CORP. (MSGE) Q1 2025 EARNINGS CALL
TRANSCRIPT
Nov. 09, 2024 2:59 PM ETMadison Square Garden Entertainment Corp. (MSGE) Stock
SA Transcripts
150.47K Followers
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> Q1: 2024-11-08 EARNINGS SUMMARY
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> Play CallSlides10-Q
> EPS of -$0.40 beats by $0.45 | Revenue of $138.71M (-2.46% Y/Y) misses by
> $523.07K
Madison Square Garden Entertainment Corp. (NYSE:MSGE) Q1 2025 Earnings
Conference Call November 8, 2024 8:30 AM ET
Company Participants
Ari Danes - Senior Vice President, Investor Relations & Treasury
Mike Grau - Executive Vice President & Chief Financial Officer
Conference Call Participants
Peter Henderson - Bank of America
Stephen Laszczyk - Goldman Sachs
Brandon Ross - LightShed Partners
Peter Supino - Wolfe Research
Cameron Mansson-Perrone - Morgan Stanley
David Joyce - Seaport Research
Operator
Good morning. Thank you for standing by and welcome to the Madison Square Garden
Entertainment Corp, Fiscal 2025 First Quarter Earnings Conference Call.
I would now like to turn the call over to Ari Danes, Senior Vice President,
Investor Relations and Treasury. Please go ahead.
Ari Danes
Thank you. Good morning and welcome to MSG Entertainment's fiscal 2025 first
quarter earnings conference call. On today's call Mike Grau, our EVP and Chief
Financial Officer will provide an update on the company's operations and review
our financial results for the period.
After our prepared remarks, we will open up the call for questions. If you do
not have a copy of today's earnings release, it is available in the investor
section of our corporate website. Please take note of the following.
Today's discussion may contain forward-looking statements within the meaning of
the Private Security Litigation Reform Act of 1995. Any such forward-looking
statements are not guarantees of future performance or results and involve risks
and uncertainties that could cause actual results to differ materially from
those in the forward looking statements. Please refer to the company's filings
with the SEC for a discussion of risks and uncertainties. The company disclaims
any obligation to update any forward-looking statements that may be discussed
during this call.
On pages four and five of today's earnings release, we provide consolidated
statements of operations and a reconciliation of operating income to adjusted
operating income or AOI, a non-GAAP financial measure.
And with that I'll now turn the call over to Mike.
Mike Grau
Thank you, Ari and good morning, everyone. With our new fiscal year underway, we
expect our portfolio of assets and brands to continue benefiting from demand for
shared experiences. In our bookings business, the Garden recently saw a record
number of concerts for our fiscal first quarter. Last month, we welcomed back
the Knicks and Rangers to the world's most famous arena for the start of their
'24/'25 regular seasons. While later today, the Christmas Spectacular will kick
off its 91st holiday season. Lastly, in our marketing partnership business, we
recently announced a number of notable agreements, while we also remain
encouraged by the level of corporate demand for our premium hospitality
offerings.
Let's now review, some first quarter operational highlights. During the quarter,
our venues hosted nearly 800,000 guests at over 120 events. But as you saw in
this morning's earnings release, our bookings business saw lower concert-related
revenues year-over-year. This reflected lower per concert revenues, primarily
due to a mix shift at the Garden from promoted events to rentals, which all else
being equal generates similar AOI, but lower revenues on a per event basis. It
also reflected fewer concerts at our theaters.
These decreases were partially offset by growth in the number of concerts at the
arena, including an increase in the number of acts headlining the arena for the
first time, which is one of our strategies to increase utilization.
The increase in the number of concerts at the Garden is also noteworthy, since
the prior year quarter included residencies from Phish and Dave Chappelle, as
well as two additional Billy Joel concerts.
From the demand side, consumers continue to demonstrate their desire for
in-person shared experiences, with the majority of concerts across our venues
once again, sold out during our first quarter. In terms of in-venue spending,
combined food beverage and merchandise per caps at concerts were down modestly,
year-over-year. This mainly reflected the impact of higher per cap shows in the
prior year quarter like Phish and Dave Chappell's residencies, at the arena.
I would also note, that per cap spending for the quarter was up compared to the
fiscal 2024 full year average.
Looking ahead, we have seen some slowing in our concert bookings pacing in
recent weeks. That said, we are experiencing positive momentum across family
shows, special events and marquee sports and continue to expect to grow our
total number of bookings events this fiscal year.
In terms of family shows, next week Annie will begin to combine 64 performances
at the Chicago Theater and the Theater at MSG. We also have a number of upcoming
high-profile special events, including the return of the Tony Awards to Radio
City, in June. And in our sports bookings business, next week we will welcome
the UFC back to the Garden, for what we expect to be one of the top grossing
events, in the Arena's history. And next month, Tennis returns to the Garden for
the first time since 2018.
With regard to the Knicks and Rangers, the cash component of the Arena license
fees will be $44 million for this fiscal year and these fees will continue to
grow at 3% each year through fiscal 2055. And while still early, we are seeing
positive momentum across our share of food beverage and merchandise at Knicks
and Rangers home games.
Turning to the Christmas Spectacular. We are kicking off the 91st holiday season
later today, and this year's production will include new immersive elements as
we continue to invest in improving the guest experience. Advanced ticket sales
continue to outpace where we were at the same time last year. This reflects
increases across individual and group sales, aided by the ongoing return of
tourism to New York.
In light of the demand we've seen so far, we have added two performances to this
year's holiday season run, bringing the total number of shows currently on sale
to 199. This compares to 193 performances last year. We're also continuing to
monitor ticket sales and may add performances to this year's run, if demand
warrants.
Based on how we're pacing, we anticipate welcoming over one million guests to
the Christmas Spectacular again, this holiday season and expect to deliver
another year of record revenues for the production.
Turning to our marketing partnerships business. We recently announced a number
of new deals including Lenovo and its subsidiary Motorola as well as the
Department of Culture and Tourism Abu Dhabi. We also recently signed an expanded
renewal with Verizon. All of these deals are multiyear in nature and encompass a
wide variety of our assets and brands.
In terms of premium hospitality, we continue to see strong new sales and renewal
activity for our suites. That includes our event level club space, which was
introduced last year and was recently expanded ahead of the 2024-2025 season.
And we recently completed the renovation of a number of event and Lexus level
suites and are already seeing the benefit of incremental revenue from these
refreshed spaces.
As you've just heard, we are seeing a number of puts and takes in our business
so far this fiscal year. That includes some slowing in concert bookings pacings
on one hand and strength in the Christmas Spectacular special events and marquee
sports on the other hand.
In addition as we look ahead to the balance of the fiscal year, we now expect to
incur additional expenses related to our recent decision to end our agreement
with Oak View Group's Crown Properties Collection and bring sponsorship sales
back in-house. As a result, we now anticipate delivering a mid to high
single-digit percentage increase in adjusted operating income for fiscal 2025.
Let's now review our first quarter financial results. For the fiscal '25 first
quarter we reported revenues of $138.7 million as compared to $142.2 million in
the prior year quarter. This reflected a decrease in revenues in our
entertainment offerings and food beverage and merchandise categories, partially
offset by growth in our arena license fees and other leasing category.
As I touched on earlier the decrease in revenues from entertainment offerings,
primarily reflected lower per concert revenues, mainly due to a shift in the mix
of events at the Garden from promoted concerts to rentals and a decrease in the
number of concerts at the company's theaters. This decrease was partially offset
by an increase in the number of concerts at the Garden during the quarter.
The decrease in food beverage and merchandise revenues, primarily reflected the
impact of lower per concert food and beverage revenues at our venues and to a
lesser extent, fewer concerts at our theaters. This decrease was again partially
offset by an increase in the number of concerts at the Garden during the
quarter.
First quarter adjusted operating income of $1.9 million increased $2.1 million
as compared to the prior year quarter. The increase in adjusted operating income
primarily reflects a decrease in direct operating and SG&A expenses, partially
offset by the decrease in revenues.
Turning to our balance sheet. As of September 30th, we had $37 million of
unrestricted cash, while our debt balance was $677 million. This reflected $622
million outstanding under our term loan and $55 million drawn on our revolving
credit facility during the quarter.
Our capital allocation priorities are unchanged. We remain focused on
opportunistically returning capital and debt paydown. Since the end of the
quarter we have already paid down the full $55 million revolver balance and we
continue to expect to generate substantial free cash flow as we progress through
fiscal 2025.
This is underscored by our current expectations for a mid to high single-digit
percentage increase in AOI, ongoing net interest payments, which totaled $51
million for the trailing 12-month period, our current status as a modest cash
income taxpayer, and capital expenditures, which include both maintenance CapEx
as well as some incremental spend related to the Christmas Spectacular and suite
renovations at the Garden.
In summary, we continue to be confident in the strength of our portfolio of live
entertainment offerings and believe we are well positioned to deliver long-term
value for our shareholders.
Ari Danes
Thank you, Mike. And with that, operator, can we now open up the call for
questions?
Question-and-Answer Session
Operator
Thank you. We will now begin the question-and-answer session. [Operator
Instructions]
Your first question comes from the line of Peter Henderson from Bank of America.
Your line is open.
Peter Henderson
Yes, good morning and thank you for taking the question. So, Mike you mentioned
that you've seen some slowing in the concert bookings in recent weeks. Maybe you
could discuss the causes in your mind for that slowing? And just also provide
updated thoughts on concert bookings for the Garden as well as for the theaters
for the next quarter as well as for the remainder of the year?
And then finally, just where you stand on concert bookings now relative to this
point last year for fiscal 2Q, 3Q, and 4Q? Thanks.
Mike Grau
Sure Peter, good morning and thanks for the questions. So, you're right bookings
have certainly slowed a little bit since we last spoke in August. Maybe I'll
talk about it at the arena level and then at the theater level.
At the arena we have a tough year-over-year comp given the 11 extra Billy Joel
shows in the prior year and that's something we thought we would overcome. And
right now maybe a little less bullish in that regard.
What we're seeing is a couple of things. One is we have seen a little bit of a
spike in cancellations. Each of these cancellations has a little story around
it. Sometimes it's artist's health like Aerosmith and Steven Tyler. Other
instances like Black Keys and Jennifer Lopez, we had shows that were selling
very well. In fact in most instances sold out. But elsewhere the tour was
selling poorly and so they canceled the entire tour.
We are seeing a little bit more in cancellations than we've seen historically.
But I think the biggest driver is just what we're seeing is like a shortage of
supply, especially, in the spring or what would amount to our fiscal third
quarter. We took a look in the New York DMA at the announced show – announced
arena level shows this year for that quarter versus the actual shows the prior
year and it's down 50% plus in the New York DMA. This is not something unique to
the garden. And given the booking windows I think those numbers are fairly well
developed.
There is just a scarcity of supply in the spring for arena level shows. Some of
that I do think is timing because when we take a look at our bookings right now
for fiscal 2026 for the back half of calendar 2025 or our first two quarters of
fiscal 2026 we're actually ahead of where we were at this time last year. It's
admittedly on a relatively small sample but I think it's an interesting data
point. There's an element of timing to this but we are seeing a shortage of
supply there which is driving some of the pullback.
In terms of theaters versus the same time last year, our 2Q bookings are down
very modestly essentially flat. Third quarter we're seeing the same softness
that we're seeing at the arena and then the fourth quarter we're actually
modestly up. Unlike at the arena the shorter booking windows at the theater so
these numbers will continue to develop and I think there's more opportunity for
us to be adding there.
And again if we look at the theater level what we're looking at for the back
half of calendar 2025 we're up modestly again on small numbers versus where we
were at this time last year. So there is some timing to this and there is some
scarcity of supply.
So our expectations for fiscal 2025 have come down a little bit since we last
spoke in August more so at the arena still a very robust bookings business,.
still premier venues and still a lot of artist demand to play our businesses. I
do think this is more temporary in nature.
Peter Henderson
Thank you.
Operator
Your next question comes from the line of David Karnovsky from JPMorgan. Your
line is open.
Unidentified Analyst
Hi. Good morning. Doug Warwaha [ph] for David. First with the Christmas
Spectacular, can you dig in a bit more on ticket sale trends and how you're
thinking about the opportunity to potentially add more shows? And then I guess a
little bit different from the last question separate to concerts artists Knicks
and Rangers, how does the booking pipeline look for content like family shows or
other sporting events?
Mike Grau
Sure, Doug. Thanks for the questions. So I will take them in that order. In
terms of the Christmas show sales back in August we talked about the fact that
we were up 16% year-over-year. And when I say year-over-year I mean the tickets
sold at this point versus the same point last year. But at that point in time we
were only like 10% of the way to our goal.
We're now pushing up against halfway to our goal and we continue to be up 15%
year-over-year. We've sustained that and I think it has a little more weight
given that we again are halfway to our goal. We're right about there. And again
the variance is about half rate half volume. So really very robust sales very
encouraging signs. We've sustained the momentum that we were seeing in August.
So that gives us reason to believe that we have upside here compared to our
initial expectations.
We have added two shows on sale since initially going on sale and we'll continue
to monitor the demand. And if demand warrants and if the economics make sense we
do have opportunity to add a couple more shows in that regard. The current
expectation as we mentioned in our prepared comments over one million guests
similar sell-through on more shows.
And I would say over the longer term we continue to see a lot of opportunity
with the Christmas show across ticket yields where we're priced below comparable
entertainment options if you think of a Broadway show as a comparable
entertainment option. And even on sell-through and overall volume we're still
not yet at pre-COVID highs. We think there's long-term runway with the Christmas
show as well.
In response to your second question when we talk about bookings other than
concerts we tend to talk about it internally in three categories: family shows,
special events and then marquee sports which is all sports other than Knicks and
Rangers. In terms of family shows, we mentioned that we have the 64 Annie shows
starting very shortly for the holiday season. We have a Riverdance 30th
anniversary of five show run coming to Radio City. So a pretty busy schedule in
terms of family shows.
Special events is a good story. This was an area that was a little bit weaker
last year than we expected. It tends to be a little more heavily weighted to the
fourth quarter, but we're already seeing very encouraging signs in 2025. We
mentioned a couple of multi-night events coming to Radio City including the Tony
Awards. We're already seeing in the first quarter some corporate events and
things of that nature. I think there's real upside here again versus our initial
expectations.
And then in terms of marquee sports, the primary asset or property we have there
is college basketball. We continue to leverage a really good relationship with
St. John's. And we have some pretty good high-profile matchups coming to the
Garden Gonzaga and UConn, North Carolina, UCLA, Kentucky Ohio State really
premium programs.
UFC 309 coming to the Garden next week and Tennis coming to the Garden for the
first time since 2018. So really a pretty good topshelf lineup in marquee sports
there too. So overall, I'd say we have pretty strong momentum in all of those
kind of non-concert booking categories.
Unidentified Analyst
Great. Thank you.
Operator
Your next question comes from the line of Stephen Laszczyk from Goldman Sachs.
Your line is open.
Stephen Laszczyk
Hey, great. Thank you for taking my questions. Maybe just a follow-up on the new
AOI guidance for Mike. Could you maybe talk a little bit about how you're
thinking about the swing factors still at play that would either take you to the
high end or low end of that guidance range for mid to high singles for the year?
And then maybe as a part of that it sounds like there's some added costs related
to the shift away from Oak View. Curious if there's any way you could quantify
that for us the impact this year and then anything reoccurring on the expense
side? Thank you.
Mike Grau
Sure. Stephen, in evaluating our outlook we look of course at the upsides and
the downsides or the headwinds and the tailwinds if you will. In terms of the
challenges we're seeing it's kind of the things we've been talking about the
concert bookings -- the pacing of concert bookings and some of that incremental
overhead to bring sponsorship sales in-house. And then we do think we have
upsides around the Radio City Christmas show, the special events and marquee
sports that I just spoke to as well as some kind of one-time OpEx pickups that
we experienced in the first quarter.
So at a high level, this is kind of where we're seeing some deviations from
initial expectations. In terms of what's going to push us to the high end or the
low end of our outlook, I think it's just the magnitude of some of these. And
the ones I would call out is the pacings of concert bookings the low end of our
range we are allowing for some additional headwinds there. But it's just, again,
a magnitude question. I think same for the Christmas show. At our high end,
we're allowing for a lot of upside at our low end might be a little bit of
upside. There's upside there for sure. And then sponsorship revenues, but we'll
continue to monitor the pipeline and see what else we can monetize there.
In response to your second question, we will be bringing sponsorship sales back
in-house. There will be incremental overhead, but we're not going to offer up
any specifics around that today.
Stephen Laszczyk
Great. Thank you.
Operator
Your next question comes from the line of Brandon Ross from LightShed Partners.
Your line is open.
Brandon Ross
Hey, thanks. Just a follow-up on Stephen's last question about Oak View. Can you
just give us any color on why you parted ways with them and how to think about
sponsors to sell specifically going forward in the wake of that? Thank you.
Mike Grau
Sure. Brandon, listen, we historically have always managed this function
in-house. About a year ago, we did make a decision to outsource this to Crown
Properties Collection. And one year into the experiment, we've made a decision
that we think actually the initial structure was the better one, and that's
what's going to benefit us more for the long-term. And so we're going to be
bringing it back in-house, there's really no more specifics to speak about in
that regard.
As far as the outlook for sponsorship sales, we are seeing some decent traction
right now. We had new deals announced with Motorola, Lenovo, Department of
Culture and Tourism, Abu Dhabi. We had an early renewal with Verizon, an early
and expanded renewal with Verizon.
So we think we have some good starts there. We have a strong roster of core
partners. We think our brands and our assets are pretty unique, certainly want
to capitalize on the Knicks and the Rangers and their deep playoff funds last
year. So we do feel like this is a destination site for those people who want to
spend sponsorship and signage money in this area. We'll continue to monitor our
pipeline closely. I think a reasonable outlook for 2025 would be for modest
year-over-year growth. And I think over the longer-term, as we bring this back
in-house, our expectation is that we can accelerate on that.
Brandon Ross
Thank you.
Operator
Your next question comes from the line of Peter Supino from Wolfe Research. Your
line is open.
Peter Supino
Hi. Good morning. Wondered about the size of the market for the Garden over the
long run. I think a lot of us agree that with streaming, music and social media,
it seems like more artists are becoming arena performers faster than ever. Do
you see artists moving up out of your theater portfolio faster than years ago?
And more broadly, would you comment on the long-term outlook for the supply
growth at the Garden as a key driver of long-term growth at that facility?
Thanks.
Mike Grau
Sure, Peter. Thanks for the question. Listen, this is a strategy that we're
actually pretty fond of internally. We think it makes a lot of sense. We
leverage the fact that we do have portfolios at various levels. We have the
Beacon with the 3,000 seat capacity, Radio City at 6,000 and then the Arena up
to 21,000.
So we think that positions us kind of uniquely to take artists earlier in their
career trajectories and kind of shepherd them or walk them up the ladder, if you
will to the point where they're ready to play the arena. And we've had a lot of
success with that.
More so probably current recently, a lot of the acts that played in the first
quarter were first-time artists performing at the arena. Some of the success
stories will be Olivia Rodrigo, not a first quarter story, but she played Radio
City a couple of years ago and sold-out arena shows in April that were very
successful.
Noah Kahan, Lake Street Drive also kind of graduated to the arena, if you will,
in the first quarter from Radio City. And then we sometimes see an artist like a
Sabrina Carpenter, who goes straight to the Arena side show. So I agree with
you.
I think there isn't a real good pipeline here. I think that's the premise of
this strategy is having the venues at the different size points and creating
that longer-term pipeline. And I do think that promises to create a little more
supply as we move forward.
I'd say with these first-timer acts, maybe a little more variability, but that
is tempered a little bit. I think our bookings team is just top-shelf and have a
really good feel for who is ready to play the arena or not. And it's just a
really smart way to build pipeline. And I do think that is a source of long-term
growth in terms of supply.
Operator
Your next question comes from the line of Cameron Mansson-Perrone from Morgan
Stanley. Your line is open.
Cameron Mansson-Perrone
Good morning. Thanks for taking the question. Mike, you called out lower per
caps. I was wondering if you could elaborate on that. I'm guessing given the
demand for Christmas Spectacular that that's not indicative of broader consumer
health, but curious if you could provide some more color on those trends?
Thanks.
Mike Grau
Sure. We did talk about it, but I'll repeat just for the benefit of the
question. We did see lower per caps in the first quarter, but it's really a
function of the mix of artists playing the venue as compared to the prior year
period.
There are certain artists, which either based on the nature of the act or
sometimes the nature of the show, the length of the show and whether or not they
have an intermission that generate very high per caps. And we had a couple of
those artists in the first quarter last year that I think we cited Phish and
Dave Chappelle in our prepared comments that had just notably higher average per
caps.
We're up against a tough comp in that regard and that's why food and beverage
per caps, food and beverage and merch per caps, I should say, were down
year-over-year, but they were actually up versus full year 2024. So I wouldn't
read a lot into the decline in the per caps. I think that's kind of a unique
dynamic driven by again the mix of shows that we saw in the prior year quarter
versus this year quarter.
If I look at the month of October alone, already, the food and beverage merch
per cap spending at contrast was up as compared to October last year. I think we
noted in our comments that early returns suggest the per caps at the Knicks and
Rangers games have nice positive momentum. So I would not read anything into
that, as far as consumer demand goes.
The other factors I would say and these are the kinds of things we talk about
when we're talking about consumer demand is sell-through with the majority of
our first quarter contrasts sold out, our overall sell-through for first quarter
contrast was right about 90% flat even maybe slightly up versus the prior year.
And the arena is even higher than that. So certainly no weakness in consumer
demand in that regard. And then the other point that you cited in your question
is with the Radio City Christmas show, where we're seeing a really increased
appetite for ticket sales revenue, both in terms of volume and ticket yield up
mid-teens percentage added two shows. So really from our perspective, consumer
demand for the shared in-person live experiences remains very strong.
Cameron Mansson-Perrone
That’s helpful.
Ari Danes
Operator, we'll take one last caller.
Operator
Your final question comes from the line of David Joyce from Seaport Research.
Your line is open.
David Joyce
Thank you. Three questions actually. One is a bigger picture one on, what you're
seeing for the general health of the consumer across your various markets and
properties. Second question, back to food and beverage and merch. I was
wondering why the revenue was down, but the OpEx was still flat year-over-year.
And then the final question is, given that you're heading into your strongest
cash flow quarter of the year and we haven't had capital returns since a number
of unusual opportunities last year related to the Sphere, what are your plans
for capital returns going forward? Thank you.
Michael Grau
Sure, David. Thank you for the question. In terms of the health of the consumer,
I would just revert back to the prior question when we talked about the consumer
demand and the strength we're seeing in sell-through, the temporary decline in
per caps already reversing in October and the health in per caps of Knicks and
Rangers and then the strong demand we're seeing at Radio City Christmas Show. So
we don't have really concerns about the health of the consumer or the levels of
consumer demand.
In terms of your question about food and beverage margins, you're right,
revenues were down year-over-year, because some of the factors we cited in
response to the previous question kind of the lower concert per caps at the
arena due to the tough comp. And despite this the food and beverage direct OpEx
was flat. So we definitely saw some margin compression there year-over-year. I
think, if we get into the direct OpEx, the COGS is down essentially consistent
with revenue. So we're still seeing the same margin on the actual product. Where
we're seeing margin compression is on higher labor costs and that's driven by a
new collective bargaining agreement which was signed late in fiscal '24 and did
drive higher labor costs year-over-year. It's not a surprise to us and that's
factored into all of our expectations for the year.
We do have some levers here that we can pull to enhance F&B margins and the F&B
team is certainly very adept at that. We're constantly monitoring competitive
pricing at other venues in the area and that's our main data point in terms of
setting our pricing. We are implementing some dynamic pricing. That's something
we talk about a lot in terms of the Christmas show, but we're now starting to
implement some of that in terms of food and beverage and really changing pricing
on select items on an event-by-event basis based on demand and the nature of the
event. And I think we have opportunities to expand that to additional food
categories.
And then the last point I would cite on that would be the use of technology. I'm
referring here to if you're in the arena, you see more and more of these
self-service concession terminals. And that has kind of a twofold benefit. On
the margin side, it does yield reduced labor costs. And then on the volume side,
it does yield increased throughput shorter lines. So it has really two benefits.
And I think you'll start to see more and more of those in the garden as time
goes on.
And then in your response to your last question, nothing new to report in terms
of our capital allocation priorities. We continue to have two priorities, debt
paydown and then return of capital to shareholders. In terms of debt paydown, I
mentioned that we did repay the $55 million revolver already this quarter. So
the revolver is back down to 0. We'll continue to make quarterly repayments on
our term loan which is about $4 million per. Other than that, the business
should naturally delever, based on our expectations of AOI growth. So I think
we're well positioned in terms of debt paydown.
And then as you mentioned, we ended the quarter with $37 million of unrestricted
cash, but we are entering our seasonally busiest stretch and this is where we
would expect cash to start to build. And so, once our cash balance has built to
a more appropriate level is when we'll start to have those decisions and that's
when we will evaluate returning capital to shareholders.
The only other thing I would say in terms of other uses of capital, nothing new
to flag. No big CapEx initiatives right now. We have invested CapEx, I think
pretty wisely in certain discrete projects around additions to the Christmas
Spectacular to enhance the guest experience and some of the investments we've
made around the event level club we introduced last year and renovating event
and Lexus level suites, which have very quick payback periods, very high ROIs.
So smart investments, but nothing new on that front.
Operator
And that concludes our question-and-answer session. I will now turn the call
back over to Ari Danes for closing remarks.
Ari Danes
Thank you all for joining us. We look forward to speaking with you on our next
earnings call in February. Have a good day.
Operator
This concludes today's conference call. Thank you for your participation. You
may now disconnect.
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ABOUT MSGE STOCK
SymbolLast Price% Chg
MSGE
Madison Square Garden Entertainment Corp.
36.391.62%Post36.39
* 1D
* 5D
* 1M
* 6M
* 1Y
* 5Y
* 10Y
*
Created with Highcharts 11.2.0Nov 11No…Nov 12Nov 13Nov 14Nov 1534363840
Market Cap
$1.76B
PE (FWD)
18.57
Yield
-
Rev Growth (YoY)
12.81%
Short Interest
3.32%
Prev. Close
$35.81
Compare to Peers
MORE ON MSGE
MADISON SQUARE GARDEN ANNOUNCES CFO TRANSITION
MADISON SQUARE GARDEN ENTERTAINMENT: MEDIUM-TERM OUTLOOK REMAINS POSITIVE
Eleceed Capital
MADISON SQUARE GARDEN ENTERTAINMENT GAAP EPS OF -$0.40 BEATS BY $0.45, REVENUE
OF $138.7M MISSES BY $0.54M
MADISON SQUARE GARDEN ENTERTAINMENT: DEMAND REMAINS ROBUST
Eleceed Capital
TRENDING ANALYSIS
TRENDING NEWS
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