Regardless that the coronavirus shutdown started simply three weeks earlier than the tip of the quarter, Madison Square Garden Entertainment’s revenues dropped 20% to $199.9 million in contrast with final yr, based on outcomes launched Monday.
The corporate, which just lately divided its leisure and sports activities operations into two divisions, noticed its working losses for the three-month interval ended March 31 go from $18.6 million in the identical quarter final yr to $145.5 million this yr, whereas its adjusted working earnings dropped $25.2 million to a $7.2 million loss
MSGE stated the working loss contains $102.2 million in “non-cash impairment costs” for its Tao Group Hospitality eating and nightlife division, which has been hit arduous by the shutdown and closed one venue completely.
The corporate has seen all of its venues shuttered, which embody Madison Square Garden, Chicago Theatre and the Tao Group, and it leases New York’s Radio Metropolis Music Corridor and Beacon Theater. Consequently, its working bills had been additionally down considerably, dropping $26 million to $132.eight million.
The corporate additionally stated that the formidable and futuristic MSG Sphere enviornment in Las Vegas will not be anticipated to open as deliberate in 2021 because of building delays associated to the pandemic. The corporate introduced the Sphere, and one other in London that’s pending approvals, in an elaborate presentation in 2018.
The corporate stated that it had roughly $1.four billion in money and money equivalents and short-term investments as of Could 1, together with the web proceeds from the sale of the Discussion board enviornment in Inglewood, Calif. to Clippers proprietor Steve Ballmer.
The corporate didn’t maintain an earnings name, however govt chairman and CEO James L. Dolan stated in an announcement, “With the MSG Entertainment spin-off full, we consider we’ve got created an organization that can increase on our monitor file of making long-term worth for shareholders. Our Firm has been within the enterprise of bringing individuals collectively for many years, and we’re assured that we’re well-positioned to climate these unsure instances. We consider the general public’s innate need to be a part of shared experiences will proceed and we sit up for opening our doorways for unforgettable occasions but to return.”