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DATE

Wednesday, Aug. 12, 2026 at 10:00 a.m. ET

CALL PARTICIPANTS

• Senior Vice President, Investor Relations and Treasury - Ari Danes
• Executive Vice President and Chief Financial Officer - David J. Collins

TAKEAWAYS

• Full Year Revenue -- $1.1 billion, representing a 13% increase driven by growth across all key business areas.
• Adjusted Operating Income -- $262.2 million for the fiscal year, an 18% increase reflecting improved operating momentum across the venue portfolio.
• Q4 Revenue -- $196.3 million, up 27% year over year following a doubling in the number of concerts at the Garden during the quarter.
• Christmas Spectacular Revenue -- $195 million in fiscal 2026, marking a record-setting year following the highest attendance in 25 years.
• Shared Sports Revenue -- $7.4 million increase in Q4 receipts from Madison Square Garden Sports Corp. agreements, reflecting higher merchandise and food sales during a championship run.
• Seasonal Production Attendance -- 1.2 million tickets sold across 215 paid performances for the holiday show in fiscal 2026.
• Arena License Fees -- $47 million projected for fiscal 2027, with the cash component scheduled to grow 3% annually.
• Fiscal 2026 Share Repurchases -- $25 million deployed to buy back approximately 623,000 shares of Class A common stock.
• Historical Capital Returns -- $205 million utilized to repurchase 6.1 million shares in total since the company spin-off in 2023.
• Cash and Debt -- $294 million in unrestricted cash and $579 million in total debt as of June 30, 2026.
• Interest Payments -- $32 million in net payments related to credit facilities during fiscal 2026.
• Garden Booking Pacing -- 90% of the fiscal 2027 goal achieved as of August 2026, including the impact of a 30-date artist residency.
• Theater Booking Pacing -- 60% of the fiscal 2027 target reached, with management noting a typical booking window of three to six months.
• Fiscal 2027 Performance Count -- 230 shows scheduled for the upcoming holiday season, representing a mid single-digit percentage increase.
• Q4 Food and Beverage Revenue -- $32.2 million, a 22% increase year over year driven by increased venue utilization during the NBA postseason.
• Capital Expenditures -- focused on technology investments and the renovation of Lexus level suites to drive incremental per-event revenue.

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RISKS

• Collins stated, "At our theaters, we are currently pacing behind for the September quarter," noting a challenge in event volume compared to the prior year.
• Collins indicated that the family show category faces a difficult year-over-year comparison because of the absence of a specific touring production that took place last year.

SUMMARY

Management reported revenue growth across all primary business segments for the fiscal year, with total receipts exceeding $1 billion. The company reached a nonbinding memorandum of understanding to transfer a theater asset as part of a transit hub redevelopment project. Financial results for the fourth quarter reflected increased concert activity at the flagship arena and expanded shared revenue from sports team performance. Capital allocation included share repurchases and reinvestment in venue infrastructure through suite renovations and technological upgrades.

• The company entered a nonbinding memorandum of understanding to transfer the Infosys Theater to a master developer as part of the Penn Station redevelopment project.
• Collins noted that the potential transaction would acknowledge that "the arena will remain fully operational during the redevelopment" to protect ongoing business operations.
• CFO Collins stated that the company is "mindful of the potential tax implications" of the theater transfer and would evaluate reinvesting proceeds into other New York City venues.
• The 2026 Christmas Spectacular will introduce immersive technology and a new scene to provide "different perspectives of the production" during its 93rd season.
• Management is evaluating ways to shift event volume from the Infosys Theater to other New York assets, such as Radio City Music Hall or the Beacon Theatre, if the transfer is finalized.

INDUSTRY GLOSSARY

• AOI: Adjusted Operating Income, a non-GAAP financial measure that excludes certain non-cash or non-recurring items such as depreciation and share-based compensation.
• Arena License Agreements: Contracts governing the relationship and revenue sharing between MSGE and MSG Sports for the use of the Garden by professional sports teams.
• Christmas Spectacular: An annual holiday production featuring the Radio City Rockettes performed at Radio City Music Hall.
• Garden: A reference to the Madison Square Garden arena in New York City.
• Infosys Theater: A venue located within the Madison Square Garden complex currently subject to a proposed transfer for redevelopment.
• MSG Sports: Madison Square Garden Sports Corp., the separate entity that owns the New York Knicks and New York Rangers.
• Rockettes: A precision dance company known for performing the Christmas Spectacular.

Full Conference Call Transcript

Operator: For standing by, and welcome to the Madison Square Garden Entertainment Corp Fiscal 26 Fourth Quarter and Year End Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers remarks, there will be a question-and-answer session. I would now like to turn the call over to Ari Danes, senior vice president, investor relations and treasury. Ari, please go ahead.

Ari Danes: Thank you. Good morning, and welcome to MSG Entertainment's fiscal 2026 fourth quarter and year end earnings conference call. On today's call, David J. Collins, our EVP and Chief Financial Officer, will provide an update on the company's operations and review our financial results for the period. After our prepared remarks, we will open up the call for questions. If you do not have a copy of today's earnings release, it is available in the Investors section of our corporate website. Please take note of the following. Today's discussion may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 2 thousand.

Any such forward looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Please refer to the company's filings with the SEC for a discussion of risks and uncertainties. The company disclaims any obligation to update any forward looking statements that may be discussed during this call. On Pages 4 and 5 of today's earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income or AOI. A non GAAP financial measure. With that, I will now turn the call over to David.

David J. Collins: Thank you, Ari, and good morning, everyone. Fiscal 26 was an outstanding year for our company. With full year revenues of more than $1 billion and adjusted operating income of $262 million. This represented increases of 13, 18%, respectively, driven by growth across all key areas of our business. In addition, we continue to execute on 1 of our core capital allocation priorities during the year, repurchasing approximately $25 million of our Class A common stock. And in June, we announced the proposed transfer of the Infosys Theater at Madison Square Garden as part of the Penn Station redevelopment project. A transaction that, if finalized, would further our goal of creating long term shareholder value.

As we head into fiscal 27, we look to build on our operating momentum with a continued focus on growing the number of events across our venues, increasing per event profitability, delivering another record setting year for the Christmas Spectacular, and advancing our sponsorship and premium hospitality businesses. We also anticipate strong ongoing demand from consumers and partners alike. Which we believe sets us up for another year of solid growth in revenues and AOI in fiscal 27. Let's now review some key operational highlights. During fiscal 26, we hosted approximately 6.4 million guests at nearly 960 live events.

That included a strong fiscal fourth quarter where we more than doubled the number of concerts at the Garden year over year. Reflecting our efforts to drive utilization within the NBA playoff window. And in terms of consumer demand, majority of our concerts were again sold out during the quarter. Looking ahead to fiscal 27, we expect to grow the number of events at our venues year over year as we host a wide range of bookings across concerts, special events, family shows, and marquee sports.

This includes a number of high profile upcoming events, such as Harry Styles residency, with 30 dates from August through October, and return of the NCAA Men's Basketball East Regionals to The Garden in March. Turning to the Christmas spectacular production, During fiscal 26 across 215 paid performances, we sold over 1.2 million tickets. Highest attendance in 25 years. Leading to another record setting year for the production with approximately $195 million in revenue. We are currently on sale with 230 shows for the 2026 holiday season, a new high in terms of number of performances in a year.

This year's show will feature the addition of a new Rockettes scene as well as new immersive technology that will give audiences different perspectives of the production as we continue innovating going into our 93rd season. In terms of our agreements with MSG Sports, the Knicks and Rangers completed their 25, 26 regular seasons during the quarter, the Knicks advancing to the NBA playoffs and ultimately going on to win the NBA championship. For both our fourth quarter and full year, we saw robust growth on a per game basis in our Knicks and Rangers shared revenue streams. Including sweets and food, beverage, and merchandise, all benefit from the Knicks postseason run.

We expect this momentum to carry forward into fiscal 27. In addition, the cash component of the Arena license fees will be approximately $47 million in fiscal 27 and will continue to grow 3% each year through fiscal 2020. On the marketing partnerships front, we capitalized on several notable opportunities in fiscal 26. We welcome new partners, including most recently, a multiyear deal with Kalshi while also reaching multiyear renewals with Lexus, Anheuser Busch, and Infosys. And in terms of premium hospitality, we again saw strong new sales renewal activity for suites at the Garden. That included a number of Lexus level suites that were renovated at the start of the fiscal year.

We are continuing to build on the successful initiative by renovating several more suites to drive incremental revenue in fiscal 27. So as we look to the next fiscal year, we expect the positive momentum in both marketing partnerships and premium hospitality to continue. Turning to the Penn Station redevelopment, In May, Amtrak selected Penn transformation partners, led by Halmar International and Skanska as the master developer team to redevelop Penn Station. We then announced in June that we had entered into a nonbinding MOU with a master developer to transfer the Infosys Theater at Madison Square Garden. Our proposed agreement will also acknowledge that the arena will remain fully operational during the redevelopment.

We believe the potential transaction which remains subject to negotiation and definitive documents, would make strategic and financial sense for the company as we look to create long term value for our shareholders. We look forward to working with the master developer team and will keep you updated as we have more to share. Now let's turn to our financial results. For the fiscal 26 fourth quarter, revenues were $196.3 million, up 27% year over year. This primarily reflected an increase in revenues from entertainment offerings and, to a lesser extent, higher food, beverage, and merchandise revenues.

The increase in revenues from entertainment offerings as well as food, beverage, and merchandise primarily reflected the increase in number of concerts at the Garden during the quarter. In addition, we benefited from higher revenues subject to our sharing of economics with MSG Sports including the benefit of the Knicks championship run, in areas such as merchandise. Revenues from venue related sponsorship, signage, and suite license fees also grew year over year. These increases were partially offset by fewer concerts at our theaters. Fourth quarter adjusted operating income of $18.6 million increased $19.9 million from an adjusted operating loss of $1.3 million in the prior year quarter.

This significant year over year growth primarily reflects the robust increase in revenues, partially offset by higher direct operating and SG&A expenses. Turning to our balance sheet. As of June 30, we had $294 million of unrestricted cash while our debt balance was approximately $579 million. This cash balance includes a significant amount due to promoters, which reflects the robust concert activity ahead at our venues led by the garden. With respect to fiscal 27, we anticipate generating significant free cash flow on an underlying basis.

This will primarily be driven by our substantial and growing adjusted operating income partially offset by ongoing net interest payments related to our credit facilities, which totaled $32 million in fiscal 26, our status as a full cash taxpayer, capital expenditures, which will reflect some incremental spend related to technology investments across the company, and select suite renovations at the garden and the timing of working capital, including the partial reversal of our cash due to promoters balance as a result of the timing of events. As I touched on earlier, we repurchased approximately 623 thousand shares of our class a common stock $25 million during fiscal 26.

Since our spin off in 2023, we have repurchased approximately 6.1 million shares in total for $205 million. And going forward, we will continue to explore ways to opportunistically return capital to shareholders. So in summary, we saw strong demand across our business in fiscal 26. We see this momentum continuing in fiscal 27, and remain confident in our ability to deliver long term shareholder value. I will now turn the call back over to Ari.

Ari Danes: Thanks, David. Operator, can we now open up the call for questions?

Operator: We will now begin the question and answer session. If you would like to ask a question, please press 1 to raise your hand. To withdraw your question, please press 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please standby while we compile the Q&A roster. Your first question comes from the line of Peter Henderson with Bank of America. Your line is open. Please go ahead.

Peter Henderson: Good morning. Thank you for taking the questions. 2 if I can related. Can you just update us on the status of the Infosys Theater sale process? And if that sale occurs, you know, how much of the venue's event volume and associated economics, like the sponsorship, You know, do you believe you can recapture elsewhere in your portfolio?

David J. Collins: Sure. Good morning, Peter. Thanks. for the question. First, I would like to congratulate Penn and Transformation Partners on being selected to redevelop Penn Station and as I had mentioned earlier, we believe that this potential transaction is in line with our goal of creating long term, value for our shareholders. So currently, we are working through the definitive documents with their team, and we will keep you posted on that progress. You know, as it relates to our ability to redirect the theaters business, you know, first, I would remind you that you know, a significant majority of our company's economics are driven by the garden and the Christmas spectacular production.

You know, the theaters in aggregate, follow those 2 revenue streams. That said, we are we are exploring all opportunities to the economic benefit of this potential transaction with the which does include analyzing our ability to shift events from the Infosys Theater to our other theaters in New York. And I would say in terms of sponsorship and signage, you know, our partnerships do generally allow us the flexibility within our business you know, while protecting the value delivered to our partners. So, you know, similar to events, we are evaluating ways to leverage our other live entertainment assets you know, for sponsorship and signage. Great. Thank you.

Operator: Your next question comes from the line of Brandon Ross with LightShed. Your line is open. Please go ahead.

Brandon Ross: Good morning. Thanks for taking the question. Maybe a follow-up on the last 1. Assuming the Infosys sale does go through, how do you guys expect to, use the proceeds and limit tax leakage at the same time? And, do those options include partnering with Sphere potentially on a New York Sphere or Sphere elsewhere? Thank you.

David J. Collins: Thanks, Brandon. You know, I would say, you know, with regard to the proposed transfer of the theater, you know, our focus right now is on completing the proposed transaction. No decisions have been made at this stage, in terms of the use of those proceeds, should the transfer be completed. But, you know, with that said, we are certainly mindful of the potential tax implications related to the transfer of the theater. And, you know, as you may know, the primary way to minimize the tax leakage would be to reinvest you know, the potential proceeds in another venue.

So, of course, we would evaluate venue opportunities in New York City market if they, you know, are presented to us in the future. But you know, I do not think we are in a position to speculate on any hypothetical venue transactions at this time. I would also add that any decision that we do make will be in line with our core priorities for capital allocation, which, as you know, are you know, ensuring that continue to have a strong balance sheet, that we maintain our flexibility to pursue compelling opportunities, you know, when they arise. And lastly, to opportunistically return capital to our shareholders.

So you know, we will continue to make our decisions based on these priorities, And you know, we will have more to share as we move through that process. Thanks, Brandon.

Ari Danes: Operator, we will take the next question.

Operator: Your next question comes from Stephen Laszczyk with Goldman Sachs. Your line is open. Please go ahead.

Stephen Laszczyk: Great. Thanks for taking the question. I wanted to see if you could provide an update on the pacing of event bookings in 2027 across the portfolio. Just to be curious how much visibility you have into bookings potentially growing at the Garden year over year, and then wanted to check-in on the pacing of bookings around the theater footprint since we last caught up in the in the third quarter, how that is progressed since? Thank you.

David J. Collins: Sure, Stephen. You know, in terms of our progress, we are we are almost 90% to our bookings goal for this year. For the garden. And about 60% of the way there for 60% of the way to our goal for our theaters. You know, our fiscal first quarter is already underway, and you know, we remain on track to shatter our record for the number of concerts in any quarter at the Garden. You know, obviously, that includes the impact of the Harry Styles residency, At our theaters, we are currently pacing behind for the September quarter.

And looking at the December quarter, we are again pacing ahead at the Garden in terms of the number of concerts but still behind at the theaters. However, you know, as I have discussed in the past, the booking window at our theaters is typically a 3 to 6 months in advance window. So you know, we do still have time, and we are definitely working to narrow that gap So I would say, overall, all in, we feel good about our start to the year and expect to drive growth at both the garden and our theaters in fiscal 27. Great. Thank you very much.

Operator: Your next question comes from the line of David Karnovsky with JPMorgan. Your line is open. Please go ahead.

David Karnovsky: Hey. Thank you for that color on the upcoming year. As it relates to the Christmas show, can you just update on sales pacing and price strategy? And you mentioned 32 show count. Is there any room to move that higher if the demand is there? Thanks.

David J. Collins: Sure, David. You know, while it is still early in the sales cycle, you know, our expectation is that we will grow ticketing revenue this year. You know, which reflects both more shows and higher average ticket yields. You know, as you mentioned, we are we are on sale with 230 performances right now for the 2026 holiday season, which is up from 215 last year, and that translates to a, you know, mid single-digit percentage increase in show count year over year. In addition, the Christmas Spectacular continues to be a premium entertainment product and is still priced well below average ticket prices for comparable entertainment options in the city.

So, you know, given all that, you know, we will continue to thoughtfully manage and market and price our inventory, you know, to maximize revenue for every show. I would again note that this year's show will feature the addition of a new Rockette scene as well as new immersive technology. Which we believe will give audiences a different perspective of the production So, you know, we continue to believe that our efforts to continue innovating the show will help drive increased interest and we remain confident in the growth opportunity for the 2026 holiday season.

Operator: Your next question comes in line of Cameron Mansson-Perrone with Morgan Stanley. Your line is open. Please go ahead.

Cameron Mansson-Perrone: Thanks. Good morning. I wanted to ask a general 1 on residency models. Specifically, you know, when you lost the Billy Joel residency, it took you some time to replace that activity. Obviously, found a great replacement and Harry Styles, but looking back on that, you know, why was the situation with Billy Joel maybe unique And what do you think you can do, or have you done operationally to try to reduce similar volatility around residency changes year to year going forward? Thanks.

David J. Collins: that is a that is a good question, Cameron. You know, we believe there is great value, obviously, in bringing residencies, to our venues. You know? We believe it builds more of a, you know, recurring base of our business, and it really also increases the visibility into our forward calendar. So you know, bringing residencies remains a really important area for our bookings business and, you know, a key focus of our team. You know, with that said, you know, every residency is going to look a little different. Right? You know, artists want to put their own unique structure and spin on their residency.

You know, for example, Billy Joel you know, that was 1 concert per month, you know, where with Harry Styles, that means every Wednesday Friday, Saturday, you know, for 10 straight weeks. So you know, each 1's going to look a little different. I would also note that you know, we also have a number of other residencies across our venues in the first half of fiscal 27, you know, Bon Jovi and Phish have been at the Garden both this past month. Joe Hisaishi currently at Radio City, and Seth Meyers and John Oliver as well as Jerry Seinfeld have each extended their long running residencies, at the Beacon Theater.

So you know, I would reiterate that, you know, we are off to a strong start. In terms of our concert booking for fiscal 27. And, you know, while it is a little early to discuss fiscal 28 and beyond, you know, we continue to have discussions with other artists about future residencies at all our venues, you know, including the garden. So we will certainly keep working on that and keep you updated on the progress. that is helpful. Appreciate it.

Operator: Your next question comes from the line of David Joyce with Seaport. Your line is open. Please go ahead.

David Joyce: Thank you. I appreciate the color that you had an increase in Madison Square Garden sharing, revenue, from the Knicks championship run. Could you please detail the revenue and AOI components on the various business lines that contribute to that? The sponsorship that provide some of that. I know you did not mention merchandise. Food and beverage, suites. If you could please help us understand, what that content is. Sure, David.

David J. Collins: You know, first of all, I would say that we were very excited to see the Knicks win the NBA championship. You know, as you mentioned, you know, we benefit from those playoff games at the Garden through our agreements with MSG Sports. You know, we share in revenue streams like F&B, merchandise, and single-night suite rentals. You know, first of all, we operate and manage the F&B services during all team events, and MSGE shares 50% of the net profits with the Knicks and Rangers. We also operate and manage the team merchandise sales at the Garden and retain 30% of net revenues.

We also earn a commission on sales of single night sweets at the Garden during Knicks and Rangers games. So this year, we hosted 9 Knicks playoff games during the team's championship run. You know, while that compares to the same number of games in the year ago period, when the team advanced to the Eastern Conference finals today's results reflect a $7.4 million increase in fourth quarter revenues related to our agreements with MSG Sports which includes that, you the impact of the championship run.

So you know, we believe that this reflects the enthusiasm we saw from fans throughout this year's championship run in those areas such as merchandise and F&B sales, and 1 thing I also like to say is that we believe that strong team performance will benefit this upcoming year in the form of, you know, continued strong in arena attendance which will further benefit, you know, our shared revenue streams with MSG Sports. Thanks for the question, David.

Ari Danes: Operator, we will take 1 last caller.

Operator: Your last question comes from the line of Joseph Stauff. Your line is open. Please go ahead.

Joseph Stauff: Good morning. This is Eric Mandelblatt on for Joe. Thanks for the question. Just 1 from us. Gave some helpful details on the fiscal 27 bookings outlook in aggregate. But could you talk about the bookings outlook by category across concerts, special events, family shows, and marquee sporting events? Thank you.

David J. Collins: Thanks for the question, Eric, As I mentioned earlier, we expect to increase the number of bookings in fiscal 27 You know, we expect that growth to be driven primarily by concerts. And, to a lesser extent, special events and marquee sports. For our concert category, you know, our expectations include another year of concert growth at The Garden as well as increases across our theaters.

I would say in terms of special events, we are also expecting an increase in the number of events along with improved per event economics looking at marquee sports, you know, we expect to see modest event growth this coming year, which will include the NCAA East Regional Tournament returning to The Garden in March, and that will be a significant multi day event in our fiscal third quarter. And lastly, in terms of our family show category, I would say we faced a tough year over year comparison with the absence of Cirque du Soleil's holiday run at the Infosys Theater and the Chicago Theater that took place this past year.

However, you know, we expect that to be largely offset by a variety of family and performing arts attractions in the year ahead, including the Les Misérables production that just ran at Radio City Music Hall. So overall, we are expecting growth across a number of our bookings categories and feel really good about our booking calendar for fiscal 27.

Operator: We have reached the end of the question and answer session. I will now turn the call back to Ari for closing remarks.

Ari Danes: Thank you all for joining us. We look forward to speaking with you on our fiscal 27 first quarter earnings conference call. Have a good day.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.