Madison Square Garden Sports (MSGS) Q2 2025 earnings summary

Executive summary

• Fiscal Q2 2025 revenues rose 9% year-over-year to $357.8 million, driven by higher ticket, suite, sponsorship, and media rights revenues, as well as additional Knicks and Rangers home games.

• Adjusted operating income for the quarter decreased 45% year-over-year to $20.2 million, reflecting higher direct operating and SG&A expenses, including increased team personnel compensation and NBA luxury tax.

• Net income for the quarter was $1.1 million, down from $14.2 million in the prior year, with diluted EPS of $0.05 versus $0.59.

• The company operates as a single segment focused on the Knicks and Rangers, with most revenue generated in the second and third fiscal quarters.

• Iconic sports franchises, the Knicks and Rangers, continue to perform well, with notable player acquisitions and contract extensions.

Financial highlights

• Total revenues for Q2 were $357.8 million, up from $326.9 million year-over-year; six-month revenue increased 11% to $411.1 million.

• Event-related revenues rose 14% to $139.4 million; suites and sponsorship revenues increased 15% to $79.4 million.

• National and local media rights fees grew 4% to $126.9 million, mainly due to contractual rate increases.

• Direct operating expenses increased 19% year-over-year to $275.8 million, primarily from higher team compensation and league revenue sharing.

• Operating income for the quarter fell 54% to $13.3 million; six-month operating income dropped 64% to $5.0 million.

Outlook and guidance

• Management remains confident in long-term business trajectory and shareholder value creation, supported by strong demand trends and premium franchise value.

• Fiscal 2025 is expected to see higher direct operating expenses, especially team personnel compensation and NBA luxury tax, due to the Knicks' roster.

• Anticipates modest overall ticket revenue growth for the fiscal year, with ongoing evaluation of ticket pricing strategies.