Madison Square Garden Entertainment’s revenue rose 37% to $217 million in its fiscal first quarter, helped by an additional $30 million from concerts, including Harry Styles’ sold-out run at Madison Square Garden. The quarter ended Sept. 30.
Revenue from the company’s entertainment offerings increased 33% year over year to $174.9 million. Food, beverage and merchandise revenue climbed 56% to $35.7 million, with about a third of that total coming from concert sales. Arena license fees and other leasing revenue rose 60.2% to $6.59 million.
Sixteen shows from Styles’ 30-night New York leg of his Together, Together tour fell within the quarter. The performances took place at the Garden on Wednesdays, Fridays and Saturdays over 10 weeks. MSGE said revenue per concert was higher during the quarter, while a greater number of events also supported ticket, food, beverage and merchandise sales.
CEO David Collins said the venue set a quarterly record for the number of concerts. He added that most shows at MSGE venues sold out, concert performance exceeded the company’s expectations, and per-person spending on food, beverages and merchandise at concerts rose by double-digit percentages. Collins described Styles’ run as an additional boost on top of underlying growth in concerts.
Higher event activity also increased costs. Direct operating expenses for entertainment offerings, arena license fees and other leasing rose 22% to $107.6 million, including an $11 million increase tied to concerts. Direct costs for food, beverage and merchandise increased 39% to $19.1 million.
Adjusted operating income rose by $27.2 million to $34.3 million compared with the prior-year quarter, as higher revenue was partly offset by increased direct operating and selling, general and administrative expenses.
Sources: Billboard.