Revenues for MSG’s second quarter include the scheduled shutdown of Madison Square Garden due to the renovations. This shutdown is expected to continue into October 2011. The company is currently shifting to a new fiscal year ending June 30th.
MSG Media revenues rose 3.8% to 139.6 million, advertising revenue increased $2.4 million as compared to 2010. MSG Entertainment Revenues decreased 23.1%, which is primarily attributed to lower event related revenues at the Garden and the Theater at Madison Square Garden due to renovation. From Mid April to June 30th of last year MSG earned 12 million dollars in event related revenues and 6.5 million in direct adjusted operating cash flow contribution for events. This serves as a point of reference as to what possible revenue was missed due to the transformation. Within MSG Entertainment segment the Beacon theatre was able to offset some of the loss producing higher then expected revenues. MSG Sports increased 18% to 75.4 million mainly due to playoff revenues as both the New York Knicks and New York Rangers advanced to the playoffs.
While management is unable to comment on the current NBA lockout MSG is more favorably placed in comparison to peers, as business operation doesn’t solely rely on the NBA or even the New York Knicks. Revenue for event venues, contracts for other sports within broadcasting, the New York Rangers franchise, the New York Redbulls contract and the increase in Fuse ratings the Madison Square Garden company will continue to pull in cash needed for their transformation and continuing operations. Despite of the lockout MSG has been able to renew over 90% of season ticket holders for the New York Nicks and 85% for the New York Rangers. MSG will continue to be closely monitored by UASBIG as the lockout continues. Look for the broadcast of Quicksilver Pro-New York surf competition September 1-15 in Long Beach New York, as MSG and Fuse are the official broadcast partners.