MADISON SQUARE GARDEN ENTERTAINMENT CORP. REPORTS FISCAL 2025 THIRD QUARTER RESULTS

About this update from Madison Square Garden Entertainment Corp.

FY25 Third Quarter Revenues of $242.5 Million , Up 6% Versus the Prior Year Quarter FY25 Third Quarter Operating Income of $27.3 Million , an Increase of 63% Year-Over-Year FY25 Third Quarter AOI of $57.9 Million (1) , Up 50% Versus the Prior Year Quarter $40 Million in MSGE Class A Shares Repurchased in FY2025 Year-To-Date, Including $15 Million in March  NEW YORK , May 6, 2025 /PRNewswire/ -- Madison Square Garden Entertainment Corp. (NYSE: MSGE) ("MSG Entertainment" or the "Company") today reported financial results for the fiscal third quarter ended March 31, 2025 . The fiscal 2025 third quarter was highlighted by a diverse slate of live entertainment events held across the Company's portfolio of venues, which – in addition to concerts – included special events, family shows and marquee sports, as well as the conclusion of this year's record-setting Christmas Spectacular run in January. During the quarter, the New York Knicks ("Knicks") and New York Rangers ("Rangers") continued their 2024-25 regular seasons at the Madison Square Garden Arena ("The Garden"). In addition, in March, the Company repurchased approximately $15 million of its Class A common stock, bringing total share repurchases in fiscal 2025 to approximately $40 million . For the fiscal 2025 third quarter, the Company reported revenues of $242.5 million , an increase of $14.2 million , or 6%, as compared to the prior year quarter. In addition, the Company reported operating income of $27.3 million , an increase of $10.5 million , or 63%, and adjusted operating income of $57.9 million , an increase of $19.3 million , or 50%, both as compared to the prior year quarter. (1) Executive Chairman and CEO James L. Dolan said, "Our third quarter results reflect continued strong consumer and corporate demand as well as a wide variety of live events across our venues. We remain on track to deliver solid adjusted operating income growth this fiscal year and believe we are well-positioned to drive long-term value for our shareholders." Results for the Three and Nine Months Ended March 31, 2025 and 2024: Entertainment Offerings, Arena License Fees and Other Leasing Fiscal 2025 third quarter revenues from entertainment offerings of $160.2 million increased $14.0 million , or 10%, as compared to the prior year period, primarily due to higher revenues subject to the sharing of economics with MSG Sports pursuant to the Arena License Agreements, an increase in revenues from the Christmas Spectacular production and higher revenues from venue-related sponsorship, signage and suite licenses fees, partially offset by lower-event related revenues. Fiscal 2025 third quarter arena license fees and other leasing revenues of $36.4 million decreased $0.3 million , or 1%, as compared to the prior year period, due to a combined two fewer Knicks and Rangers games played at The Garden in the current year period, mostly offset by an increase in other leasing revenues. Fiscal 2025 third quarter direct operating expenses associated with entertainment offerings, arena license fees and other leasing of $108.0 million decreased $5.0 million , or 4%, as compared to the prior year quarter, primarily due to lower event-related expenses and venue operating costs, partially offset by an increase in expenses related to the sharing of economics with MSG Sports pursuant to the Arena License Agreements. Food, Beverage and Merchandise Fiscal 2025 third quarter food, beverage and merchandise revenues of $45.8 million increased $0.4 million , or 1%, as compared to the prior year period. The increase was primarily due to (i) higher food and beverage sales at other live entertainment and sporting events due to an increase in the number of events at the Company's venues and higher per-event revenue, partially offset by (ii) lower food and beverage sales at concerts, primarily due to a decrease in the number of concerts at the Company's venues, both as compared to the prior year period. Fiscal 2025 third quarter food, beverage and merchandise direct operating expenses of $30.9 million increased $1.9 million , or 6%, as compared to the prior year period. The increase was primarily due to higher food and beverage costs at other live entertainment and sporting events at the Company's venues, partially offset by a decrease in food and beverage costs at concerts at the Company's venues. Selling, General and Administrative Expenses  Fiscal 2025 third quarter selling, general and administrative expenses of $52.1 million decreased $1.8 million , or 3%, as compared to the prior year period. This decrease was primarily due to lower employee compensation and related benefits, partially offset by other net cost increases. Operating Income and Adjusted Operating Income Fiscal 2025 third quarter operating income of $27.3 million increased $10.5 million , or 63%, as compared to the prior year period, primarily due to higher revenues and, to a lesser extent, lower direct operating expenses and lower restructuring charges, partially offset by an increase in impairment of long-lived assets. Fiscal 2025 third quarter adjusted operating income of $57.9 million increased $19.3 million , or 50%, as compared to the prior year quarter, primarily due to higher revenues and, to a lesser extent, lower direct operating expenses and lower selling, general and administrative expenses. Other Matters During the fiscal 2025 third quarter, the Company repurchased 436,008 shares of MSGE Class A common stock at an average price of $33.70 per share, excluding excise tax, for a total of approximately $15 million . For fiscal 2025 year-to-date, the Company has repurchased 1,117,601 shares of MSGE Class A common stock at an average price of $35.52 per share for approximately $40 million . Since the Company was spun off from Sphere Entertainment Co. in April 2023 , the Company has repurchased 5,482,968 shares of MSGE Class A common stock for an aggregate purchase price of approximately $180 million . The Company has approximately $70 million remaining under its existing share repurchase authorization. About Madison Square Garden Entertainment Corp. Madison Square Garden Entertainment Corp. (MSG Entertainment) is a leader in live entertainment, delivering unforgettable experiences while forging deep connections with diverse and passionate audiences. The Company's portfolio includes a collection of world-renowned venues – New York's Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, and Beacon Theatre; and The Chicago Theatre – that showcase a broad array of sporting events, concerts, family shows, and special events for millions of guests annually. In addition, the Company features the original production, the Christmas Spectacular Starring the Radio City Rockettes , which has been a holiday tradition for more than 90 years. More information is available at www.msgentertainment.com . Non-GAAP Financial Measures We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) excluding (i) depreciation, amortization and impairments of property and equipment, goodwill and other long-lived assets, including right of use assets and related lease costs, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, (iv) merger, spin-off, and acquisition-related costs, including merger-related litigation expenses, (v) gains or losses on sales or dispositions of businesses and associated settlements, (vi) the impact of purchase accounting adjustments related to business acquisitions, (vii) amortization for capitalized cloud computing arrangement costs and (viii) gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the various operating units of our business without regard to the settlement of an obligation that is not expected to be made in cash. We eliminate merger, spin-off, and acquisition-related transaction costs, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan, provides investors with a clearer picture of the Company's operating performance given that, in accordance with U.S. generally accepted accounting principles, gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan are recognized in Operating (income) loss whereas gains and losses related to the remeasurement of the assets under the executive deferred compensation plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Other income (expense), net, which is not reflected in Operating income (loss). We exclude impairments of long-lived assets, including right-of-use assets and related lease costs, as these expenses do not represent core business operating results of the Company. We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of the Company on a consolidated and combined basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management's effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 6 of this release. Forward-Looking Statements This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industries in which it operates and the factors described in the Company's filings with the Securities and Exchange Commission, including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein. Contacts : Conference Call Information: The conference call will be Webcast live today at 10:00a.m. ET at investor.msgentertainment.com Conference call dial-in number is 888-660-6386 / Conference ID Number 8020251 Conference call replay number is 800-770-2030 / Conference ID Number 8020251 until May 13, 2025 Investor presentation available at investor.msgentertainment.com/events-and-presentations   MADISON SQUARE GARDEN ENTERTAINMENT CORP. ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) (in thousands) (Unaudited) The following is a description of the adjustments to operating income in arriving at adjusted operating income as described in this earnings release:       View original content to download multimedia: https://www.prnewswire.com/news-releases/madison-square-garden-entertainment-corp-reports-fiscal-2025-third-quarter-results-302446571.html SOURCE Madison Square Garden Entertainment Corp.

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