MSG Entertainment stock rallies after revenue rises above expectations

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Shares of Madison Square Garden Entertainment Corp.
MSGE,
+1.43%
rose 2.0% in premarket trading Monday, after the live entertainment company, which venues include Madison Square Garden, Radio City Music Hall and The Chicago Theater, swung to a fiscal fourth-quarter loss but reported revenue that rose above expectation as capacity restrictions related to the COVID-19 pandemic were lifted in several U.S. markets. The net loss for the quarter to June 30 was $117.8 million, or $4.87 a share, after net income of $126.6 million, or $5.27 a share, in the year-ago period. The FactSet consensus for per-share losses was $3.26. Revenue rose 11-fold to $99.8 million, from $9.0 million, and beat the FactSet consensus of $71.5 million. The company said MSG Networks, which it acquired on July 9, after the quarter ended, had revenue for the quarter to June 30 of $166.1 million and operating income of $58.4 million. “[W]hile we continue to operate in a fluid environment, we remain cautiously optimistic as we prepare to meet the pent-up demand for live experiences and, after the MSG Networks acquisition, move forward with greater scale and enhanced financial flexibility to pursue growth opportunities and deliver long-term value for shareholders,” said Chief Executive James Dolan. The stock has tumbled 32.5% over the past three months through Friday, while the S&P 500
SPX,
+0.81%
has gained 6.9%.

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