Madison Square Garden Entertainment Corp. Q3 FY2026 earnings call

• Venues welcomed over 1.4 million guests at over 165 events, with year-over-year increase in Garden concerts (some multi-night runs) and mix of events affecting food/beverage and merchandise per caps. • Family show category had Dog shows 150th anniversary at the Garden. • Sports booking had college basketball, boxing, professional bull riding, WWE. • Special events faced tough comparison to prior year but looking forward to Tony Awards. • Christmas Spectacular 92nd holiday season concluded with record revenues, 2026 season on sale. • Knicks and Rangers '25-'26 regular seasons at the Garden had higher per game revenues. • Marketing partnerships and premium hospitality had notable sponsorships and strong sales/renewals.

For the fiscal third quarter, revenues were $246.3 million, an increase of 2% compared to the prior year quarter. Adjusted operating income was $46 million. Revenues from entertainment offerings increased due to growth in suite license fee revenues, including sharing with MSG Sports, and higher Christmas Spectacular revenues. Arena license fees and other leasing revenues decreased due to fewer Knicks and Rangers home games. Food, beverage, and merchandise revenues decreased with fewer Knicks and Rangers home games but had higher food and beverage sales at concerts. The concert business at the Garden had momentum, marketing partnerships and suites grew, and the Christmas spectacular had a record-setting run. Revenue contribution: Entertainment offerings contributed with growth in certain areas, while arena license fees and other leasing, and food/beverage/merchandise had respective changes.

• Expect to close fiscal '26 on a positive note led by significant increase in Garden concerts in fiscal fourth quarter compared to last year, on track for robust full year revenue and AOI growth. • Momentum carrying into fiscal '27 with concert calendar filling up, including Harry Styles residency and 2026 Christmas Spectacular on sale. • Fiscal fourth quarter at Garden has significant increase in concerts compared to last year. • Fiscal '27 concert calendar filling up with Harry Styles 30-night residency and other events.

Q: Press reports on Penn Station redevelopment and impact to Infosys theater, A: U.S. DOT and Amtrak have project schedule, RFP submissions due, expected to select master developer this month and announce preliminary design in June, will collaborate closely with stakeholders.

Q: Update on capital returns, A: Take factors into account for buybacks, including forward business outlook, have bought back substantial stock, will continue with three capital allocation priorities.

Q: Expense structure elevated in quarter, A: Unanticipated costs in direct and SG&A, higher health care expenses, mix of events impact, SG&A expense growth expected to normalize in June quarter and carry over to fiscal '27.

Q: Concert bookings pacing in fiscal fourth quarter and rest of calendar year, A: Strong end to fiscal '26 at Garden with significant concert growth in fourth quarter, fiscal '27 first half has positive signs, Garden pacing well ahead in September quarter, theaters pacing behind but with booking window, Garden pacing ahead in December quarter.

Q: Macro energy prices impact on demand, A: Strong consumer demand, majority of concerts sold out, F&B per caps up, concerts performing better than expected, upcoming acts adding shows, sell-through rate pacing ahead of last year.

Q: Residency pipeline, A: Strong start in fiscal 2027 bookings, includes Harry Styles, Bonjovi, Fish at Garden, Joe Hisaishi at Radio City, Seth Meyers and John Oliver extended at Beacon Theater, continuing discussions with artists for future residencies.

Q: Knicks playoff progress benefit to MSG Entertainment, A: Benefit from playoff games through revenue sharing on F&B, merchandise, single night suite sales, strong team performance benefits arena attendance and shared revenue streams, targeting booking concerts during playoff window for Garden utilization.