MSG Entertainment (MSGE) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue was $217.1M, up 37% YoY; operating income was $9.7M versus a $29.7M loss, and net income was $8.9M versus a $21.7M loss.

• Adjusted Operating Income (AOI) increased $27.2M YoY to $34.3M, driven by higher revenue and partly offset by higher direct operating and SG&A expenses.

• Record Garden concert activity, including 16 Q1 performances during Harry Styles’ 30-night residency, helped drive growth.

Financial highlights

• Entertainment offerings revenue rose 33% to $174.9M; food, beverage and merchandise revenue rose 56% to $35.7M; arena license and other leasing revenue rose 60% to $6.6M.

• Concert revenue increased $30.1M on more Garden concerts and higher revenue per concert, partly offset by fewer theater concerts; other live entertainment and sports events added $11.2M.

• Direct operating expenses rose 24% to $126.8M and SG&A rose 18% to $66.9M; depreciation and amortization was $13.8M versus $14.1M.

• Diluted EPS was $0.19 versus a loss of $0.46; the income tax benefit was $6.6M versus $18.8M.

Outlook and guidance

• FY27 outlook calls for robust revenue and AOI growth, significant underlying free cash flow and growth in total venue events.

• The Christmas Spectacular plans 231 performances versus 215 last year, with over 1.2M guests and record revenue expected.

• Garden concert bookings slightly exceeded the FY27 goal, portfolio bookings exceeded 80% of goal, and sell-through for the next two quarters was pacing ahead of last year.

• Special-event count and per-event economics are expected to rise; fewer family and performing-arts shows are offset by more marquee sports events.

• Free cash flow is expected to benefit from AOI growth, offset by interest, cash taxes, capital spending and working-capital timing.