MSG Entertainment (MSGE) investor relations material

Executive summary

• Fiscal Q3 2026 revenue rose 2% year-over-year to $246.3 million, driven by strong live event demand, increased concerts at The Garden, and a record-setting Christmas Spectacular.

• Over 1.4 million guests attended more than 165 events in Q3, with a year-over-year increase in concerts at The Garden, though theater concerts declined.

• Revenue for the nine months ended March 31, 2026 increased 10% year-over-year to $864.5 million, with net income up 18% to $76.2 million and diluted EPS of $1.59.

• The company operates as a single segment focused on live entertainment venues and content, primarily in the New York City area.

• CEO reaffirmed robust growth expectations for full-year fiscal 2026 and momentum into fiscal 2027.

Financial highlights

• Q3 2026 revenues increased 2% year-over-year to $246.3 million, with nine-month revenue up 10% to $864.5 million, mainly from entertainment offerings and suite license fees.

• Adjusted operating income for Q3 2026 was $46 million, down 20% year-over-year, and operating income fell 41% to $16.1 million due to higher expenses.

• Unrestricted cash and equivalents rose to $323 million as of March 31, 2026, up from $157 million at December 31, reflecting strong cash flow and promoter advances.

• Debt balance at quarter end was $587 million.

• Direct operating expenses and SG&A increased year-over-year, driven by higher event-related costs and employee compensation.

Outlook and guidance

• Fiscal 2026 is expected to close positively, with a significant increase in concerts at The Garden in Q4 compared to last year.

• Fiscal 2027 concert bookings are pacing ahead, with major residencies such as Harry Styles and other acts scheduled.

• Christmas Spectacular 2026 is on sale with 230 shows, up from 215, and is expected to deliver further growth.

• Management expects continued revenue growth driven by strong demand for live events, sponsorships, and suite licenses.

• Seasonality is anticipated, with higher revenues in the second and third fiscal quarters due to the Christmas Spectacular and sports events.