MSG Entertainment (MSGE) investor relations material

Executive summary

• Fiscal 2026 delivered record results with revenues reaching up to $1.1 billion and adjusted operating income (AOI) of $262.2 million, up 13% and 18% year-over-year, respectively.

• Approximately 6.4 million guests attended nearly 960 live events, including concerts, sports, and family shows, with record-setting Christmas Spectacular sales.

• Growth was driven by increased event volume, strong consumer demand, robust performance in sponsorship and premium hospitality, and the Knicks' NBA championship run.

• Completed spin-off in April 2023, establishing a pure-play live entertainment company with iconic venues and brands.

• The company repurchased $25 million in Class A shares in fiscal 2026 and has returned $205 million to shareholders since the 2023 spinoff.

Financial highlights

• Fiscal 2026 revenues reached $1,060.8 million, up 13% year-over-year; AOI was $262.2 million, up 18%.

• Fourth quarter revenues were $196.3 million, a 27% increase year-over-year; Q4 AOI was $18.6 million, reversing a prior year loss.

• Operating income for fiscal 2026 was $141.5 million; net income was $37.4 million.

• Cash and equivalents at year-end were $294 million; net debt at June 30, 2026, was $285 million, with net debt leverage at 1.1x AOI.

• $7.4 million increase in Q4 revenues attributed to the Knicks' playoff run.

Outlook and guidance

• Fiscal 2027 is expected to see continued growth in event volume, per-event profitability, and AOI, with bookings for The Garden nearly 90% to goal and theaters at 60%.

• Management expects continued solid growth in adjusted operating income and long-term shareholder value.

• Christmas Spectacular show count increased to 230, with higher ticket yields anticipated.

• Positive momentum expected in marketing partnerships and premium hospitality.

• Ongoing capital return potential, with $45 million remaining under share repurchase authorization.