Madison Square Garden Entertainment Corp. saw a 96 percent drop in revenues for the fiscal 2020 fourth quarter ending June 30, leading to an operating loss of $59.8 million and an adjusted operating loss of $43.3 million in fiscal 2020.
It was certainly an eventful calendar year for Madison Square Garden Entertainment Corp., one of the two entities created when MSG Sports (which includes New York Knicks, New York Rangers, Westchester Knicks, Hartford Wolf Pack, Counter Logic Gaming and Knicks Gaming.) and the entertainment corporation split in April. In addition, the Forum was sold to an investment group led by Los Angeles Clippers (NBA) owner Steve Ballmer, yielding a $240.8 million gain on the sale of the Forum.
But COVID-19 issues ended up dramatically impacted operations for the entertainment giant and its venues. That shutdown will continue; MSG had announced the cancelation of its annual Rockettes Christmas show, and the concert industry probably won’t return in any meaningful measure until 2021.
For fiscal 2020, Madison Square Garden Entertainment generated $762.9 million in revenues, a 27 percent decrease as compared to fiscal 2019. That led to an operating loss of $59.8 million and an adjusted operating loss of $43.3 million in fiscal 2020, compared to an operating loss of $45.6 million and adjusted operating income of $103.9 million in fiscal 2019.
For the fiscal 2020 fourth quarter, MSG Entertainment reported revenues of $9.0 million, a decrease of 96 percent as compared with the prior year quarter. Madison Square Garden Entertainment reported operating income of $94.4 million and an adjusted operating loss of $103.5 million, compared to an operating loss of $57.2 million and an adjusted operating loss of $21.5 million in the prior year quarter.
The slowdown is also impacting construction of the MSG Sphere in Las Vegas, where construction was halted in April but has resumed since. Madison Square Garden Entertainment estimates an opening date in calendar 2023.
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