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MSGE reported revenues of $142.2 million for the fiscal 2024 first quarter, a decrease of $4.2 million, or 3%, compared to the prior year quarter.
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The company reported an operating loss of $33.4 million, an increase of $22.1 million compared to the prior year quarter.
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MSGE reaffirms its previously issued fiscal 2024 guidance for revenues and adjusted operating income, while updating its guidance for operating income.
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The company repurchased 3,525,314 shares of MSGE Class A common stock during the fiscal 2024 first quarter.
Madison Square Garden Entertainment Corp (NYSE:MSGE) released its financial results for the fiscal first quarter ended September 30, 2023, on November 7, 2023. The company reported revenues of $142.2 million, a decrease of $4.2 million, or 3%, compared to the prior year quarter. MSGE also reported an operating loss of $33.4 million, an increase of $22.1 million compared to the prior year quarter.
Company Performance and Financial Highlights
MSGE’s fiscal 2024 first quarter marked the start of its first full fiscal year as a standalone public company. The company continues to see its bookings calendar for the remainder of fiscal 2024 fill up and remains on track to achieve a low double-digit percentage increase in events in its bookings business for the fiscal year.
For the fiscal 2024 first quarter, MSGE reported revenues of $142.2 million, a decrease of $4.2 million, or 3%, as compared to the prior year quarter. In addition, the company reported an operating loss of $33.4 million, an increase of $22.1 million as compared to the prior year quarter, and an adjusted operating loss of $0.7 million, as compared to adjusted operating income of $11.5 million in the prior year quarter.
Financial Tables Summary
The financial results for the three months ended September 30, 2023, and 2022, showed a decrease in revenues by 3% from $146.5 million in 2022 to $142.2 million in 2023. The operating loss increased by 196% from $11.3 million in 2022 to $33.4 million in 2023. The adjusted operating income decreased from $11.5 million in 2022 to a loss of $0.7 million in 2023.
Company’s Analysis and Future Outlook
MSGE is updating its fiscal 2024 guidance for operating income primarily due to the impact of restructuring charges. The company currently expects revenues of $900 million to $930 million, operating income of $85 million to $95 million, and adjusted operating income of $160 million to $170 million.
During the fiscal 2024 first quarter, the company repurchased 3,525,314 shares of MSGE Class A common stock. Since becoming a standalone company in April 2023, the company has repurchased 4,365,367 shares of MSGE Class A common stock for an aggregate purchase price of approximately $140 million, reducing Class A shares outstanding by approximately 10%.
MSGE remains focused on its capital allocation priorities of opportunistically returning capital to shareholders and debt paydown. The company is confident that it is well-positioned to create long-term value for shareholders.
Explore the complete 8-K earnings release (here) from Madison Square Garden Entertainment Corp for further details.
This article first appeared on GuruFocus.
