Q2 results: MSGE reported revenue of $459.9 million (up 13% YoY) and adjusted operating income of $190.4 million (up 16%), driven by stronger entertainment, leasing and F&B/merchandise sales.
Christmas Spectacular delivered a record season with 215 paid performances, more than 1.2 million tickets sold, roughly $195 million in total revenue, and management sees room to add shows and further ticket-pricing upside.
Forward visibility is strong — venues hosted about 2.9 million guests this quarter and MSGE expects meaningful concert growth in fiscal 2027, anchored by a 30-night Harry Styles Garden residency with a reported 11.5 million presale registrations and an already-exceeded concert bookings goal.
Madison Square Garden Entertainment (NYSE:MSGE) reported fiscal 2026 second-quarter results that management said reflected broad-based growth across the business, led by a record-setting run of the Christmas Spectacular. Executive Vice President and Chief Financial Officer David Collins said the company generated revenue of $460 million and adjusted operating income (AOI) of $190 million, both up double digits year over year, and expressed confidence the company is “well on our way to delivering robust growth” in revenue and AOI for the full fiscal year.
Collins attributed much of the quarter’s performance to “another record-setting year” for the Christmas Spectacular in its 90th holiday season. The production’s run ended in January and included 215 paid performances, up from 200 last year, after the company added shows in response to demand. MSG Entertainment sold more than 1.2 million tickets across 8.5 weeks of performances, which Collins said marked the production’s highest attendance in 25 years.
Management also cited higher average ticket yields and record per-cap spending on food, beverage, and merchandise. Collins said per-show revenue increased by a mid-single-digit percentage versus fiscal 2025 and that the Christmas Spectacular generated approximately $195 million in total revenue this season.
On pricing and demand, Collins said growth was driven by increased per-show sell-through and improved average ticket prices. Demand was “broad-based,” with growth in both individual and group tickets, and management saw growth across every geographic category tracked except international tourism, which declined year over year. Collins linked that to lower international tourism to New York during the holiday season.
Looking ahead, he said the company believes there is room to increase show count again next holiday season and sees “continued ticket pricing upside,” noting that the Christmas Spectacular remains priced “well below” average ticket prices for comparable entertainment options.
During the quarter, MSG Entertainment’s venues hosted about 2.9 million guests across more than 475 events, led by the Christmas Spectacular. Collins said the company saw a year-over-year increase in the number of events across its venues, driven by growth in concerts at its theaters, family shows, and marquee sporting events.
Concert volume at Madison Square Garden was down in the quarter due to the timing of events within the fiscal year, according to Collins, though he said most concerts across the portfolio were sold out. The family show slate included Cirque du Soleil’s “’Twas the Night Before,” which completed a 63-show run across The Chicago Theatre and The Theater at Madison Square Garden in December.
For marquee sports, Collins said UFC, WWE, and professional tennis returned to the Garden during the quarter, and the college sports schedule also began.
In-venue spending trends varied by event mix. Collins said merchandise per caps at concerts were up in the quarter, while food and beverage per caps were down, which he primarily attributed to the mix of events.
Management also highlighted additions to the forward calendar, including the Tony Awards returning to Radio City Music Hall in June and a 30-night Harry Styles residency at the Garden beginning in August. Collins said the residency is expected to contribute meaningfully to fiscal 2027 concert growth at the Garden, though he does not expect all 30 nights to be incremental. He added that the Harry Styles run will be a rental deal and cited Ticketmaster-reported demand of 11.5 million presale registrations, which he described as the largest-ever presale for a single artist in the New York market.
On booking trends, Collins said theater concert bookings for the March and June quarters were pacing behind, consistent with prior commentary, but noted that the typical booking window is three to six months and the company remains active. At the Garden, he said the company was “pacing up strongly” for the fiscal third and fourth quarters, had exceeded its concert bookings goal for the year, and was on track for robust growth in the number of arena concerts in fiscal 2026.
Early indicators for fiscal 2027 at the Garden were also positive. Collins said the company was pacing well ahead in the first half of fiscal 2027 versus the first half of fiscal 2026, with visibility into the September 2026 quarter and increasing visibility into the December 2026 quarter. In addition to Harry Styles, Collins mentioned multi-night runs from Bon Jovi and Rush and first-time headliners such as Olivia Dean, Alex Warren, and Louis Tomlinson.
For the fiscal 2026 second quarter, MSG Entertainment reported revenue of $459.9 million, up 13% from the prior-year quarter. Collins said the increase reflected higher revenue from entertainment offerings, arena license fees and other leasing revenue, and food, beverage, and merchandise.
Entertainment offerings: Growth was led by the Christmas Spectacular, driven by 14 additional performances and higher per-show revenue, primarily from ticket-related revenue.
Other live entertainment and sporting events: Revenue increased due to higher per-event revenue and, to a lesser extent, more events held at the Garden.
Knicks and Rangers timing: The teams played a combined four more home games in the quarter than the prior year, which Collins said will reverse over the balance of the fiscal year.
Concerts: Concert revenue decreased due to fewer concerts at the Garden, partially offset by higher per-concert revenue and more concerts at the company’s theaters.
Food, beverage, and merchandise: Revenue increased mainly due to higher sales at Knicks and Rangers games, the Christmas Spectacular, and other live entertainment and sporting events, partially offset by lower concert-related food and beverage sales tied to fewer Garden concerts.
Adjusted operating income totaled $190.4 million, up 16% year over year, reflecting revenue growth partially offset by higher direct operating and SG&A expenses.
Collins said fiscal 2026 has included multiple sponsorship announcements, including a multiyear renewal with Anheuser-Busch and an expanded multiyear partnership with Infosys. The Infosys agreement includes naming rights for The Theater at Madison Square Garden, now called the Infosys Theater at Madison Square Garden. Collins said these partnerships show progress from bringing sponsorship sales back in-house.
In premium hospitality, Collins said suite sales and renewals at the Garden have remained strong, including for renovated Lexus Level suites, and he said the company was on track for growth in both marketing partnerships and premium hospitality in fiscal 2026.
As of December 31, MSG Entertainment had $157 million of unrestricted cash, up from $30 million at September 30, which Collins attributed to strong cash flow during the company’s seasonally busiest period. Quarter-end debt was $594 million, reflecting the paydown of a $20 million revolver balance during the quarter.
Collins said the company repurchased about 623,000 shares of Class A common stock for $25 million fiscal year-to-date and had about $45 million remaining under its current authorization. He reiterated the company’s capital allocation priorities: maintaining a strong balance sheet, preserving flexibility for opportunities, and “opportunistically” returning capital to shareholders. He also said there were no major capital projects to flag for the remainder of the fiscal year.
On expenses, Collins said SG&A was “a bit noisy” in the quarter and included nonrecurring items, including $4 million in executive management transition costs and a $2 million one-time expense true-up related to prior periods. Excluding those items, he said SG&A growth was still elevated, reflecting higher employee compensation and higher labor costs expected to continue into the March quarter. He also said the company implemented a voluntary exit program and expects to incur about $8 million in severance expense primarily in the March quarter, with SG&A expected to start normalizing by the June quarter.
Management also provided an update on the Penn Station redevelopment process, saying the U.S. Department of Transportation and Amtrak have reiterated their intended project schedule and are expected to select a master developer by May 2026. Collins said the company remains committed to collaborating with stakeholders and noted that if needed, it believes it could shift some events from the Infosys Theater at Madison Square Garden to other New York theaters in its portfolio.
MSG Entertainment said it expects to provide its next update on its May earnings call.
Madison Square Garden Entertainment Corp. (NYSE: MSGE) is a premier live entertainment company focused on producing and hosting a wide range of events across North America. Established as a separate publicly traded entity in April 2020 through a spin-off from Madison Square Garden Company, MSGE owns and operates iconic venues such as Madison Square Garden in New York City, Radio City Music Hall, The Chicago Theatre and Sphere in Las Vegas. These facilities serve as flagship stages for concerts, sports events, family shows and cultural performances.
The company’s core business activities center on venue management, event promotion and production services.
