Profit Falls 74% Post-Billy Joel

Madison Square Garden Entertainment reported a 74% decline in profit for its full fiscal year on Wednesday (Aug. 13), as the company struggled with fewer concerts at its iconic New York venue, the Garden, and the end of Billy Joel‘s decade-long residency.

MSG Entertainment’s reported net income, the profitability metric often called the bottom line, fell to $37.4 million for fiscal 2025 from $144.3 million in fiscal 2024, while total revenue declined 2% to $947.2 million. The company’s share price was down more than 10% at 2 p.m. ET.

Although MSG reported holding more than 975 concerts, family shows and sports events for around 6 million ticketholders across its five venues in fiscal 2025, MSG Entertainment CFO David Collins said the end of Joel’s MSG residency on July 25, 2024 — which had him playing the Garden once a month beginning in January 2014 — contributed to the year-over-year decline in concerts held at Madison Square Garden.

Including basketball and hockey games from the New York Knicks and Rangers, the Garden was in use only about 65% of the time, Collins said.

“We’re looking to get back on track for event growth in fiscal 2026,” said Collins, adding they are in “late planning stages” for a major new residency in 2026.

Breaking it down for the fourth quarter, revenue from entertainment offerings declined by 17% to $118.7 million. Fewer concerts in the quarter resulted in a $21.6 million decline in event-related revenues and contributed to an $8.3 million decline in food, beverage and merchandise revenues, which totaled $26.4 million in the fourth fiscal quarter. This was partially offset by $14.2 million in operating expense savings.

Additionally, there was a $2.4 million decline in revenue related to lower suite license fees because the Knicks and Rangers played fewer games at the Garden.

Operating income for the full fiscal year 2025 rose 9% to $122.1 million despite an operating loss of $25.8 million in the fourth quarter. Adjusted operating income for the full fiscal year 2025 rose 5% to $222.5 million, although the company reported a loss of $1.3 million in adjusted operating income in the fourth quarter.

In addition to Madison Square Garden, MSG Entertainment owns The Theater at Madison Square Garden and The Chicago Theatre, holds long-term leases on Radio City Music Hall and The Beacon Theatre, and oversees the Radio City Rockettes and their long-running holiday production, Christmas Spectacular.

Collins highlighted the Christmas Spectacular, which generated a record-high $172 million in revenue from the sale of 1.1 million tickets in fiscal 2025, as one of the company’s key levers to improve profitability in fiscal 2026. Collins said the number of tickets sold so far this year and revenue from those ticket sales are already ahead of this time last year, and the Rockettes will be performing 11 more shows this holiday season.

Concert ticket sales so far in the first fiscal quarter are tracking ahead of 2024, and 80% of available dates for booking the Garden in fiscal 2026 have been sold, Collins said. “We expect to grow the number of events at our venue this year,” he added.

Other factors that negatively impacted MSG Entertainment’s fiscal 2025 earnings included a $28 million income tax loss, compared to a $92 million income tax benefit in 2024, an $11.2 million loss on the impairment of long-lived assets and a $6 million loss on the extinguishment of debt.

The company bought back about $40 million of its stock during fiscal 2025 and can repurchase up to $70 million more in company stock.