Shares of Madison Square Garden Entertainment Corp. (MSGE) plummeted 5.76% on Thursday after the company reported disappointing fiscal first-quarter 2025 results, with revenue missing analyst estimates and an operating loss, albeit narrower than the previous year.
The entertainment company, which owns iconic venues like Madison Square Garden, Radio City Music Hall, and the Chicago Theatre, saw its revenue decline 2% year-over-year to $138.7 million, missing the analyst consensus estimate of $247.5 million. The revenue drop was primarily due to lower event-related revenues from concerts and fewer events at the company's theaters.
Despite the revenue decline, Madison Square Garden Entertainment reported an operating loss of $18.5 million, an improvement of 45% compared to the $33.4 million loss in the prior year quarter. The company also reported adjusted operating income of $1.9 million, up from a loss of $0.2 million a year ago, driven by lower direct operating expenses and selling, general, and administrative expenses.
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