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."
Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool owns shares of Madison Square Garden. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.