Madison Square Garden Sports Corp. reported its financial results for the three months ended September 30, 2024, showing significant improvements in revenue and net loss compared to the same period in the previous year. Total revenues from contracts with customers reached $53.3 million, marking a 24% increase from $43.0 million in the prior year. This growth was driven by higher league distributions and other revenues, which rose to $34.7 million from $24.7 million, alongside a slight increase in event-related revenues.
The company reported an operating loss of $8.3 million, a 44% improvement from the $14.8 million loss recorded in the same quarter of 2023. The loss before income taxes also decreased significantly to $14.6 million, down from $34.0 million. The net loss for the quarter was $7.5 million, a substantial reduction of 60% from the $18.8 million loss in the prior year. Basic loss per share improved to $(0.31) from $(0.79).
Direct operating expenses increased to $8.2 million from $3.5 million, attributed to higher team personnel compensation and NBA luxury tax implications. However, selling, general, and administrative expenses decreased by 2% to $52.6 million, driven by lower sales and marketing costs and employee compensation.
As of September 30, 2024, the company had cash and cash equivalents of $52.3 million, down from $89.1 million at the end of June 2024. Total current assets increased to $235.8 million from $216.9 million, while total assets rose to $1.37 billion from $1.35 billion. Total liabilities increased to $1.65 billion, with deferred revenue significantly rising to $306.8 million from $148.7 million, reflecting strong ticket sales and media rights agreements.
The company continues to face challenges, particularly with MSG Networks, its broadcasting partner, which is experiencing financial difficulties that could impact media rights agreements. The company has approximately $185 million remaining under its $525 million share repurchase program but did not repurchase any shares during the quarter.
Overall, Madison Square Garden Sports Corp. demonstrated improved financial performance in Q3 2024, with notable revenue growth and reduced losses, despite ongoing challenges in the media rights landscape.
About Madison Square Garden Sports Corp.
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