Madison Square Garden Entertainment Corp. · NYSE:MSGE
Madison Square Garden Entertainment — FY2023 Earnings Presentation
27 slides from Madison Square Garden Entertainment's earnings presentation, Aug 18, 2023
Slide 1: UREN. ae ‘
ie * UREN. ae ‘ “i 4m AUGUST 2023
Slide 2: Safe Harbour
SAFE HARBOUR Madison Square Garden Entertainment Corp. (the Company ) has filed with the Securities and Exchange Commission an Annual Report on Form 10-K for the year ended June 30, 2023. The Annual Report contains extensive disclosure about the Company and its business, including selected historica
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 with the Arena License Agreements with 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. ◼ ~67% of shares were distributed to shareholders, while 33% were retained by Sphere Entertainment Co. (1) ◼ As of August 18, 2023, Sphere Entertainment Co. retained 17
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 ONGOING NEW YORK MARKET RETURN OF CAPITAL 6
Slide 7: Our Portfolio
OUR PORTFOLIO Pr
Slide 8: Iconic Venues
5 ICONIC VENUES ~900 LIVE EVENTS ACROSS NEW YORK AND CHICAGO IN FISCAL 2023 5.5+ MILLION GUESTS 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 venue of its size in the world ~21,000 seat maximum capacity 1 BILLBOARD MAGAZINE 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 venue of its size in the world Versatile venue in central New York City location New York City and national landmark ~5,600 seat maximum capacity ~6,000 seat maximum capacity 1 BILLBOARD MAGAZINE AS OF YEAR END 2022 10
Slide 11: Beacon Theatre and The Chicago Theatre
BEACON THEATRE THE CHICAGO THEATRE 1 1 Top 10 grossing venue of its size in the world #5 grossing venue of its size in the world Iconic rock and roll landmark venue Chicago landmark ~2,800 seat maximum capacity ~3,600 seat maximum capacity 1 BILLBOARD MAGAZINE 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 89 years of New York’s cherished holiday tradition 12
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 MUSIC
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 C A P I T A L O F T H E W O R L D 23 MILLION+ 56 MILLION+ 1 2 POPULATION ANNUAL TOURISTS HOME TO GREATEST # RANKED #1 OF 210 4 3 OF FORTUNE 500 COMPANIES DESIGNATED MARKET AREAS #1 CONCERT MARKET 5 IN THE U.S. 1 NEW-YOR
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 profitability • World-class facilities and operations • Drive repeat visitation to increase • Leveraging innovative technology sell-through A
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 1.1 1.1 1.1 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 Knicks Rangers $107 ORIGINAL NBA “ORIGINAL SIX T E A
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 WIDE ARRAY OF PREMIUM PRODUCTS 21 58 EVENT LEVEL LEXUS LEVEL • Over 100 premium hospitality offerings SUITES SUITES • Range of exclusive private spaces, first-class amenities and premier seating locatio
Slide 21: Financial Overview
FINANCIAL OVERVIEW eae
Slide 22: Diversified Revenue Base
DIVERSIFIED REVENUE BASE F I S C A L 2 0 2 3 R E P O R T E D R E V E N U E M I X SPONSORSHIP, 1 SIGNAGE, & SUITES 31% FISCAL 2023 FOOD, BEVERAGE & REVENUE MERCHANDISE $851M 18% TICKETING & VENUE LICENSE FEES 42% ARENA LICENSE 2 AGREEMENTS 8% 1 INCLUDES ADVERTISING SALES COMMISSIONS REVENUE ($8.8M) U
Slide 23: Fiscal 2024 Financial Guidance
FISCAL 2024 FINANCIAL GUIDANCE KEY DRIVERS OF FISCAL 2024 GUIDANCE IMPROVING VENUE UTILIZATION FISCAL 2024 REVENUE • Low double-digit percentage growth in events in bookings business $900M-$930M BUILDING ON THE SUCCESS OF CHRISTMAS SPECTACULAR • Increasing sell-through and number of shows 1 OPERATIN
Slide 24: Balance Sheet Snapshot
BALANCE SHEET SNAPSHOT P O T E N T I A L F O R O N G O I N G 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 capital 5 TOTAL DEBT OUTSTANDING $659M to shareholders 1 • $90M Class A Shares repurchased since April 2023 6 CASH AND CASH EQU
Slide 25: Appendix
APPENDIX 25
Slide 26: FY Guidance Reconciliation of Operating Income to Adjusted Operating Income
APPENDIX F Y 2 0 2 4 G U I D A N C E 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 FY2024 OPERATING INCOME (U.S.GAAP) $100M-$110M Non-cash portion of Arena License fees from MSGS $(25)M Depreciation and Amortization $55M Sha
Slide 27: Madison Square Garden Entertainment
MADISON SQUARE GARDEN ENTERTAINMENT
Madison Square Garden Entertainment — FY2023 Earnings Presentation on 6ix