Madison Square Profit Tops Estimates - Update

(RTTNews) - Madison Square Garden Co. (MSG) Wednesday posted a better-than-expected increase in fourth-quarter profit, helped by affiliate and advertisement revenue at its media segment, and its sports segment benefited from higher number of ice hockey games. This was mostly offset by a slump at its smaller entertainment segment due to lower event-related revenue at is venues.

Madison Square operates in the sports, entertainment, and media businesses. The company owns the New York Knicks and Rangers, among other sports teams, and runs venues including Madison Square Garden and the Beacon Theatre.

The New York-based company posted quarterly net income of $36.4 million or $0.47 per share, compared with $28.6 million or $0.37 per share last year.

On average, 10 analysts polled by Thomson Reuters expected earnings of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter edged up 1 percent to $336.4 million from $333 million a year ago. Analysts expected revenue of $324.18 million.

Revenue at media segment climbed 6 percent year-over-year, on greater affiliation rates as well as higher advertising revenue at both MSG Networks and Fuse.

Sports revenue increased 7 percent, led by the New York Rangers' compressed regular season schedule in the quarter as a result of the NHL work stoppage.

Its smaller Entertainment segment slid 31 percent due to lower event-related revenues at the company's venues, mainly the result of fewer theater events.

Madison Square said it continues to benefit from the strength of its integrated business. This fall, the company will debut a completely transformed arena, followed early next calendar year with the re-opening of a revitalized Forum arena, which will mark its venue expansion to the West Coast.

The company's stock is trading at $58.86, up $0.44 or 0.75%, on a volume of 1.2 million shares on the Nasdaq