Madison Square Garden Entertainment Corp. Q3 FY2025 earnings call

• Strong consumer and corporate demand for live entertainment reflected in revenue and adjusted operating income growth YOY. • Hosted over 1.5 million guests across 195 events during the quarter. • Special events: Hosted SNL 50th anniversary special at Radio City Music Hall, set to host Tony Awards; welcomed back Westminster Dog Show to the Garden with return planned next year. • Sports: Garden had busy college basketball quarter and sold-out WWE event. • Concerts: Year-over-year decrease in events, but majority of concerts at venues sold out; food and beverage per caps at Garden concerts up. • Christmas Spectacular: 91st holiday season concluded with record revenues, 15 shows in Q3, per-show attendance and average ticket prices grew YOY; on sale for 2025 holiday season. • Marketing partnerships: Multi-year renewal with Pepsi; premium hospitality: strong suite sales at the Garden including sold-out expanded event-level club space. • Repurchased approximately $40 million of Class A common stock YTD, including $15 million in Q3, with $70 million remaining under buyback authorization.

For the fiscal third quarter, MSG Entertainment reported revenues of $242 million. Adjusted operating income was $58 million. Entertainment offerings revenues increased by $14 million (10%). The Christmas Spectacular had over $170 million in total revenues from 200 performances. Concerts saw a year-over-year decline in the number of events but most concerts at venues sold out; food and beverage per caps at Garden concerts were up, while those at theaters were unchanged. Arena license fees and other leasing revenues were lower year-over-year due to fewer Knicks and Rangers home games, partially offset by higher other leasing revenues.

• Pacing toward mid-to-high single-digit AOI growth for the fiscal year. • Fourth quarter: New York Arena concert market down; Garden has tough comp due to absence of three Billy Joel performances and Rangers not qualifying for playoffs; theaters strong for special events like Tony Awards. • Fiscal 2026 concert bookings: Strong pacing in September quarter at Garden and theaters; December quarter: theaters strong, Garden behind but conversations at arena encouraging and gap narrowing.

• Forward-looking statements involve risks and uncertainties; refer to company's SEC filings for discussion of risks. • Impact of macroeconomic factors on tourism and ticket sales. • Potential challenges in concert bookings at Garden in December 2026 quarter due to current pacing.

Q: David Karnovsky inquired about AOI decline in Q4, asking to walk through puts and takes on revenue and cost side for fiscal fourth.

A: David Collins stated factors like overall New York Arena concert market down, tough comp at Garden due to missing Billy Joel shows and no Rangers playoffs, but theaters strong for special events like Tony Awards.

Q: Cameron Mansson-Perrone followed up on 2026 concert bookings, asking about early booking activity.

A: Lee Weinberg responded that there are positive signs for 2026, strong pacing in September quarter at Garden and theaters, likely to set new concert record at Garden in September; December quarter theaters strong, Garden behind but conversations at arena encouraging and gap narrowing.

Q: Jack Speed (on behalf of Peter Supino) asked about Penn Station project and Christmas Spectacular's exposure to domestic or international tourism.

A: Lee Weinberg on Penn Station: Committed to improving Penn Station, collaborating with stakeholders, no update on theater sale. David Collins on tourism: Christmas Spectacular had ~10% international tourists in tickets sold; concerts at Garden had low to mid-single-digit percentage international ticket sales, main feeder markets Canada and UK.

Q: Stephen Laszczyk followed up on Christmas Spectacular, asking about growth drivers and demand.

A: Lee Weinberg said growth potential for 2025 Christmas Spectacular through more shows and higher ticket yields; on sale earlier this year, event ticket sales pacing up over 60% in gross ticket revenue.

Q: Peter Henderson asked about capital returns, inquiring how to think about opportunistically returning capital.

A: David Collins said capital allocation priorities include strong balance sheet, flexibility to invest in core business (no material capital projects on horizon), and continuing to opportunistically return capital to shareholders with $70 million remaining under buyback authorization.