Madison Square Garden Entertainment Corp. Q1 FY2026 earnings call

• The company is off to a strong start in fiscal 2026 with broad-based strength in the business, particularly in bookings and the Christmas Spectacular. • Venues welcomed over 900,000 guests across 140 events, with a new record for concerts at The Garden. • Majority of concerts across venues were sold out in the first quarter. • Repurchased approximately $25 million of Class A common stock. • Christmas Spectacular 2026 has 215 shows, using Sphere Immersive Sound, with advanced tickets pacing up double digits. • Booking events at a steady pace, on track to grow total events in fiscal '26, including concerts, family shows, and sports events. • Marketing partnerships business has internal sales team in place, well-positioned to capitalize on opportunities.

For the fiscal 2026 first quarter, revenues were $158.3 million, a 14% increase versus the prior year quarter. Adjusted operating income was $7.1 million, an increase of $5.2 million compared to the prior year quarter. The Christmas Spectacular had 215 shows planned for the holiday season, up from 200 last year, with advanced ticket sales pacing up double digits. Concerts at The Garden set a new record for the number of concerts in a quarter, with most concerts sold out. Food and beverage per cap at concerts at The Garden was up, while down at theaters, primarily due to event mix.

• Confident in driving solid growth in revenue and adjusted operating income in fiscal 2026. • Expect to continue booking events at a steady pace and grow total events at venues in fiscal '26. • Christmas Spectacular anticipates over 1 million guests and higher per show revenue. • Progress on finalizing a residency for fiscal '27, which could drive concert growth at The Garden. • Remain focused on opportunistically returning capital to shareholders with $45 million remaining under buyback authorization.

• Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially. • City income tax changes or repeal of The Garden property tax exemption would require action by New York State legislature and governor. • Macro environment could impact consumer demand for concessions and merchandise, though management sees strong demand currently.

Q: New mayor and potential higher taxes for MSG?

A: Not speculating on hypotheticals, but city income tax changes or property tax exemption repeal require action by New York State legislature and governor.

Q: Slowdown in concessions and merchandise sales?

A: Continue to see strong consumer demand, with strong demand for Christmas Spectacular, sold-out concerts, and sell-through rate for concerts pacing in line with last year.