Madison Square Garden Sports Corp. Q4 FY2022 earnings call

• Fiscal 2022 had record full-year financial results with revenues over $820 million and adjusted operating income over $140 million, exceeding 2019 pre-pandemic levels. - Successfully navigated post-pandemic challenges, enhanced operations, and has new growth strategies. - Both Knicks and Rangers have talented young cores; Rangers had a thrilling post-season run in 2021-2022. - Strong viewership across media: NBA regular season viewership up 19% vs last season, NHL US viewership up 16% in first year of new media rights deal. - Marketing partnerships reached record level with new and renewed partners, including expansion into sports gaming. - Premium hospitality offerings saw strong suite renewal rates and new sales activity.

For fiscal 2022, total revenue was $821.4 million with adjusted operating income of $142.2 million. In the fiscal 2022 fourth quarter, total revenues were $175.2 million. Event-related revenues were $99.1 million (mainly ticket, food, beverage, and merchandise including playoffs), suites and sponsorship (including playoffs) were $34.4 million, and national and local media rights fees were $31.9 million. The prior year quarter had compressed timing of shortened seasons and capacity restrictions, affecting comparability.

• Fiscal 2023 poised for year-over-year growth across key revenue lines excluding playoff impact. - Benefits from Rangers playoff run expected to boost ticket, sponsorship, and suite sales. - Anticipates continued growth in sponsorship and suite revenues with new opportunities like NHL jersey patches and NBA international expansion. - Bullish on media rights renewals as national deals come up for renewal.

• Uncertainties from COVID-19 variants (Delta, Omicron) impacting operations. - International travel restrictions and low office occupancy rates in New York. - Cyclicality of sponsorship categories with potential for some categories falling out of fashion.

Q: Brandon Ross asked about sponsorship headwinds due to crypto pullback and sports betting rationality.

A: Andy Lustgarten responded that crypto doesn't make up a large part of sponsorship, new categories like sports betting have been capitalized on, and there's further growth potential in new categories including marijuana/CBD.

Q: Ben Swinburne asked about growth outlook and contract repricing.

A: Andy Lustgarten mentioned strong renewal rates, ticket pricing increases, new inventory opportunities, and bullish on sponsorship and media rights renewals.

Q: David Karnovsky asked about capital allocation.

A: Victoria Mink stated priorities are maintaining liquidity, keeping a strong balance sheet with debt paydown, and considering return of capital but no specific plans yet.

Q: Devin Brisco asked about playoff impact and sports betting monetization.

A: Andy Lustgarten discussed playoff's impact on demand and social media growth, and sports betting is early with potential for further engagement as regulation evolves.

Q: Farshid Javar asked about NBA international sponsors.

A: Andy Lustgarten talked about NBA increasing international partners to 10, leveraging international experience to grow partnerships and reach.