Madison Square Garden Entertainment Corp. · NYSE:MSGE
Madison Square Garden Entertainment — Investor Presentation (May 2023)
26 slides from Madison Square Garden Entertainment's investor presentation, May 18, 2023
Slide 1: MSG Entertainment May 2023
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Slide 2: Safe Harbour
SAFE HARBOUR Madison Square Garden Entertainment Corp. (the Company ) has filed with the Securities and Exchange Commission an Information Statement dated April 3, 2023 (the “Information Statement”) in connection with its spin -off from Sphere Entertainment Co. (“Sphere Entertainment”), which was co
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES We define adjusted operating income (loss) (“AOI”), which is a non-GAAP financial measure, as operating income (loss) excluding (i) the impact of non- cash straight-line leasing revenue associated w ith the Arena License Agreements w ith Madison Square Garden Sports Corp.
Slide 4: Legendary Brands, Iconic Venues, Compelling Opportunities
LEGENDARY ICONIC COMPELLING OPPORTUNITIES BRANDS VENUES 4
Slide 5: Overview of MSG Entertainment Spin-off
OVERVIEW OF MSG ENTERTAINMENT SPIN-OFF ◼ On April 20, 2023, MSG Entertainment (NYSE: MSGE) was spun-off by Sphere Entertainment Co. (1) ◼ ~67% of shares were distributed to shareholders, while 33% were retained by the former parent ◼ Spin-off created a pure-play live entertainment company, poised to
Slide 6: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS ENDURING PROFITABLE WORLD-CLASS POPULARITY OF BUSINESS ENTERTAINMENT POISED FOR CHRISTMAS VENUES SPECTACULAR GROWTH SUBSTANTIAL POTENTIAL FOR PRESENCE IN OPPORTUNISTIC NEW YORK MARKET RETURN OF CAPITAL 6
Slide 7: Our Portfolio
OUR PORTFOLIO 7
Slide 8: Iconic Venues
5 ICONIC VENUES ~900 LIVE EVENTS ACROSS NEW YORK AND CHICAGO PROJECTED IN FISCAL 2023 5+ MILLION GUESTS PROJECTED IN FISCAL 2023 35 YEAR DEALS 89 YEARS TO HOST HOME GAMES FOR OF THE CHRISTMAS SPECTACULAR NEW YORK KNICKS & RANGERS STARRING THE RADIO CITY ROCKETTES 8
Slide 9: Madison Square Garden
MADISON SQUARE GARDEN “The World’s Most Famous Arena” 1 #1 grossing v enue of its size in the world ~21,000 seat capacity 1 BILLBOARD M AGAZ INE AS OF YEAR END 2022 9
Slide 10: The Theater: Radio City Music Hall at Madison Square Garden
THE THEATER RADIO CITY MUSIC HALL 1 AT MADISON SQUARE GARDEN #3 grossing v enue of its size in the world Intimate env ironment in central New York City location New York City and national landmark ~5,600 seat capacity ~6,000 seat capacity 1 BILLBOARD M AGAZ INE AS OF YEAR END 2022 10
Slide 11: Beacon Theatre and The Chicago Theatre
BEACON THEATRE THE CHICAGO THEATRE 1 1 Top 10 grossing v enue of its size in the world #5 grossing v enue of its size in the world Iconic rock and roll landmark v enue Chicago landmark ~2,800 seat capacity ~3,600 seat capacity 1 BILLBOARD M AGAZ INE AS OF YEAR END 2022 11
Slide 12: Christmas Spectacular Starring the Radio City Rockettes
CHRISTMAS SPECTACULAR STARRING THE RADIO CITY ROCKETTES Own the Radio City Rockettes and Christmas Spectacular brands 1 Av eraging 1 million or more people annually 1 AVERAGE ANNU AL VISITATION FROM FISCAL YEAR 2011-2020 AND 2023. FISCAL YEAR 2021 CHRISTMAS SPECTACULAR WAS CANCELLED DU E TO IM PACT
Slide 13: Valuable Real Estate Holdings
VALUABLE REAL ESTATE HOLDINGS O U R V E N U E S VENUE MARKET SIZE NEW YORK CITY ~1.1M SQ. FT. BUILDING NEW YORK CITY PART OF THE GARDEN CHICAGO ~73K SQ. FT. BUILDING VENUE MARKET SIZE EXPIRATION 1 NEW YORK CITY ~577K SQ. FT. BUILDING 2038 2 NEW YORK CITY ~57K SQ. FT. BUILDING 2036 1 RADIO CITY M U S
Slide 14: Our Business
OUR BUSINESS 14
Slide 15: Substantial Presence in New York City Metro Area
SUBSTANTIAL PRESENCE IN NEW YORK CITY METRO AREA T H E E N T E R T A I N M E N T A N D F I N A N C I A L C A P I T A L O F T H E W O R L D 23 MILLION+ 65 MILLION+ 1 POPULATION ANNUAL TOURISTS 2 PRE-PANDEMIC HOME TO GREATEST # RANKED #1 OF 210 4 3 OF FORTUNE 500 COMPANIES DESIGNATED MARKET AREAS 5 #1
Slide 16: Established Leader in Live Entertainment
ESTABLISHED LEADER IN LIVE U N I Q U E A P P R O A C H D R I V E S B O O K I N G S U C C E S S OPPORTUNITIES UNMATCHED EXPERIENCES • Grow per-event revenue and • World-class facilities and operations profitability • Lev eraging innov ative technology • Drive repeat visitation ARTIST-FIRST APPROACH •
Slide 17: The Enduring Popularity of the Christmas Spectacular
THE ENDURING POPULARITY OF THE CHRISTMAS SPECTACULAR 8 9 Y E A R S O F N E W Y O R K ’ S C H E R I S H E D H O L I D A Y T R A D I T I O N PAID ATTENDANCE TOTAL REVENUE IN MILLIONS $ IN MILLIONS $132 $130 $128 1.1 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 $114 1.0 0.9 $109 $102 $101 $95 $93 $90 $84 $82 $5
Slide 18: Valuable Long-Term Arena License Agreements with MSG Sports
VALUABLE LONG-TERM ARENA LICENSE AGREEMENTS WITH MSG SPORTS M A D I S O N S Q U A R E G A R D E N S E R V E S A S H O M E T O M A R Q U E E S P O R T S F R A N C H I S E S A R E N A L I C E N S E F E E C A S H P A Y M E N T S $ I N M I L L I O N S FY55E $107M Knicks Rangers ORIGINAL NBA “ORIGINAL SI
Slide 19: Strong Marketing Partnership Track Record
STRONG MARKETING PARTNERSHIP TRACK RECORD S P O N S O R S H I P R E L A T I O N S H I P S D E L I V E R C O M P E L L I N G V A L U E INNOVATIVE MARKETING PARTNERSHIP OFFERINGS • Sought-after entertainment brands • Significant exposure in NYC • Cross-selling opportunities with MSG Sports VALUABLE MU
Slide 20: Exceptional Hospitality Offerings
EXCEPTIONAL HOSPITALITY OFFERINGS D E L I V E R I N G F I R S T - C L A S S E X P E R I E N C E S 21 58 WIDE ARRAY OF PREMIUM PRODUCTS EVENT LEVEL LEXUS LEVEL SUITES SUITES • Ov er 100 premium hospitality offerings • Range of exclusive private spaces, first-class amenities and premier seating locati
Slide 21: Financial Overview
FINANCIAL OVERVIEW aia
Slide 22: Fiscal 2023 Financial Guidance
FISCAL 2023 FINANCIAL GUIDANCE P R O F I T A B L E B U S I N E S S W I T H D I V E R S I F I E D R E V E N U E M I X FY23 PROJECTED REVENUE MIX 1 FISCAL 2023 REVENUE SPONSORSHIP, 3 SIGNAGE, & SUITES $835M-$845M 30% 1 OPERATING INCOME MSG SPORTS 4 $85M-$95M AGREEMENTS 15% BOOKINGS 2 BUSINESS 1 CHRIST
Slide 23: Balance Sheet Snapshot
BALANCE SHEET SNAPSHOT P O T E N T I A L F O R O P P O R T U N I S T I C R E T U R N O F C A P I T A L CAPITAL ALLOCATION PRIORITIES • Focus on debt paydown and opportunistic return of 3 TOTAL DEBT OUTSTANDING $673M capital to shareholders • $250M share repurchase program authorized 4 CASH AND CASH
Slide 24: Appendix
APPENDIX 24
Slide 25: Reconciliation of Operating Income to Adjusted Operating Income
APPENDIX F Y 2 0 2 3 R E C O N C I L I A T I O N O F O P E R A T I N G I N C O M E T O A D J U S T E D O P E R A T I N G I N C O M E PROJECTED FY2023 OPERATING INCOME (U.S.GAAP) $85M-$95M Non-cash portion of Arena License fees from MSGS $(27)M Depreciation and Amortization $58M Share-based compensat
Slide 26: Madison Square Garden Entertainment
MADISON SQUARE GARDEN ENTERTAINMENT
Madison Square Garden Entertainment — Investor Presentation (May 2023) on 6ix