New York Knicks parent MSG (NYSE:MSG) said on Friday it swung to a stronger-than-expected second-quarter profit as the recently-spun off Cablevision (NYSE:CVC) unit benefited from a 9.5% rise in revenue.
MSG said it earned $14 million, or 18 cents a share, last quarter, compared with a loss of $3.9 million, or 5 cents a share, in the year-earlier period. Analysts had been expecting EPS of just 6 cents.
Revenue climbed 9.5% to $227.1 million. There was no consensus revenue forecast from analysts polled by Thomson Reuters.
“Madison Square Garden's strong second-quarter growth is a continued reflection of the integrated approach to our dynamic content, iconic venues and programming distribution platforms,”” CEO Hank Ratner said in a statement. “We are enthusiastic about the strategy we have in place and continue to see all three of our business segments as meaningful contributors to our profitability over the long term.”
MSG Media, which consists of the company’s regional sports network, reported an 18.2% increase in revenue to $134.5 million thanks to affiliate fee revenue growth and higher ad revenue.
The company’s entertainment unit, which includes Radio City Music Hall, saw a 14% rise in revenue to $46.8 million amid an increase in live events.
However, revenue at MSG Sports, the parent of the Knicks and New York Rangers, reported a 6.9% decline in revenue to $63.9 million due to lower playoff revenue and an absence of a marquee arena boxing event.
Shares of MSG, which was spun off from Cablevision in February, rose 4.07% to $20.21 Friday morning.