Madison Square Garden Co. posted a deeper loss in the latest quarter even as soaring expenses dented better-than-expected revenue growth.
For the September quarter, Madison Square Garden reported a loss of $28.6 million, or $1.19 a share, compared with a loss of $1.6 million, or six cents a share, a year prior. Analysts polled by FactSet had anticipated a loss of $1.17 a share.
Revenue rose 21% to $181.7 million, above the $167.3 million expected by analysts.
Last year, Madison Square Garden separated its media business and its sports-entertainment business. Its media business, which includes MSG regional sports-TVnetworks, became MSG Networks Inc. Meanwhile, the sports business that includes the New York Knicks and Rangers, and its entertainment business that organizes and hosts live events in venues such as Manhattan's Radio City Music Hall and Madison Square Garden became the reporting segments of Madison Square Garden Co.
Revenue in the entertainment business rose 44% compared with a year ago on more events at venues like The Garden and The Forum in Inglewood, California. To a lesser extent, the company attributed the increase to a Radio City Rockettes production.
However, high event-related expenses at its venues and higher expenses for the Rockettes due to a shift in timing had dented the bottom line. Total direct operating expenses at the company jumped 56% from a year ago.
Revenue in its sports business fell 3%, primarily due to one less Rangers preseason game and two fewer Liberty regular season games compared with the year-ago period.Selling, general and administrative expenses climbed 32%, primarily reflecting higher corporate general and administrative costs, employee compensation and related benefits and professional fees. The company said it would have incurred more of such expenses in the year-ago period if it had been a stand-alone public company at the time.
Shares were inactive in premarket trading. The stock is down 11% in the past three months.
MSG Networks, the smaller of the two firms, on Thursday reported better-than-expected earnings and revenue in its September quarter. Shares of that company have risen 23% in the past three months.
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(END) Dow Jones Newswires
November 04, 2016 09:05 ET (13:05 GMT)
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