Entertainment and sports business Madison Square Garden (NYSE: MSG ) today announced financial results for its Q1 2014, with revenue growing 6% compared to where it was this time last year. In its press release, the company said the growth in sales was due to a revenue increase in MSG Sports and MSG Media segments.
MSG Sports grew 21%, partly due to higher revenue from suite rental fees and league distributions, while MSG Media grew 4% because of increasing affiliation fees and advertising revenue. These growths were partially offset by a 4% sales decline in the company's MSG Entertainment division.
While revenues were up this quarter, operating income took a light hit, dropping from $40.1 million to $39.8 million due to higher costs from depreciation and amortization. Quarterly net income, however, rose from $20.6 million to $23.8 million, its profit margin growing from 32% to 36%.
CEO Hank Ratner stated that Q1 2014 represents "the successful conclusion of a significant capital investment cycle and positions our Company for its next chapter." He also said it was a time of celebration, thanks to the recent completion of "a fully transformed Madison Square Garden Arena" and the planned January re-opening of a "reinvented Forum in Inglewood, California."