Madison Square Garden Entertainment Corp.

What they do

MSG Entertainment manages venues including Madison Square Garden, the Infosys Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and The Chicago Theatre. It produces the Christmas Spectacular Starring the Radio City Rockettes and runs an entertainment and sports bookings business across concerts, family shows, special events and marquee sports. The Garden hosts the home games of the New York Knicks and New York Rangers under long-term Arena License Agreements.

Revenue drivers

• Entertainment offerings — The largest revenue line, combining concert bookings, other live entertainment and sporting events, and sponsorship, signage and suite license fees; Fiscal 2026 fourth-quarter entertainment offerings revenue was $152.7 million, up 29% year-over-year, with concerts up $22.7 million on more events at The Garden and higher per-concert revenue.
• Arena license fees and other leasing — Payments tied to Knicks and Rangers home games at The Garden and other leasing; Fiscal 2026 fourth-quarter arena license fees and other leasing revenue was $11.5 million, up 27% year-over-year.
• Christmas Spectacular — A seasonal original production at Radio City Music Hall; Fiscal 2026 had over 1.2 million tickets sold across 215 paid performances in its 92nd holiday season, with record-setting revenues.

Recent performance

Fiscal 2026 revenues were $1,060.8 million, up $118.1 million or 13% year-over-year, with operating income of $141.5 million, up 16%, and adjusted operating income of $262.2 million, up 18%. The company hosted approximately 6.4 million guests at nearly 960 events in Fiscal 2026. Fourth-quarter revenue was $196.3 million, up 27%, with an operating loss of $8.6 million, an improvement of $17.1 million, and adjusted operating income of $18.6 million versus a $1.3 million adjusted operating loss a year earlier. Fiscal 2026 net income was $66.2 million, or $1.38 per diluted share, on operating cash flow of $351.4 million.

Strategy

Management aims to create world-class live experiences by leveraging its venue portfolio, brands, booking and production expertise, sponsorship and premium hospitality capabilities, and industry relationships. The company cites its New York presence and long-term Arena License Agreements with the Knicks and Rangers as core strengths.

Risks

• Competition for events and audiences — The company competes with other venues, entertainment options and leisure activities for concerts, family shows and sporting events, and its venues face alternatives in New York and Chicago.
• Dependence on Christmas Spectacular and event attraction — Success depends heavily on the continued popularity of the Christmas Spectacular and on the ability to attract popular artists, groups and events to its venues.
• Penn Station redevelopment — The redevelopment of New York City's Penn Station is cited as a risk, including potential disposition of the Infosys Theater at Madison Square Garden.
• Debt and financing — The company cites substantial debt under its National Properties Credit Agreement and the ability of subsidiaries to make payments, repay or refinance that debt, and to obtain additional financing.

Outlook

Executive Chairman and CEO James L. Dolan said the results reflect strong demand for live entertainment offerings and that the company is well positioned to drive solid growth in adjusted operating income in fiscal 2027. Management also expressed confidence in delivering long-term shareholder value.