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1. Company Snapshot

1.a. Company Description

Madison Square Garden Entertainment Corp.engages in the entertainment business.It produces, presents, or hosts various live entertainment events, including concerts, family shows, and special events, as well as sporting events, such as professional boxing, college basketball and hockey, professional bull riding, mixed martial arts, and esports and wrestling in its venues, including The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City; and The Chicago Theatre.


The company also operates 70 entertainment dining and nightlife venues spanning 20 markets across five continents under the Tao, Marquee, Lavo, Beauty & Essex, Cathédrale, Hakkasan, and Omnia brand names; and creates and operates New England's premier music festival.In addition, it features the Radio City Rockettes, which serves as the star for its Christmas Spectacular at Radio City Music Hall.The company was founded in 2006 and is based in New York, New York.

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1.b. Last Insights on MSGE

The recent performance of Madison Square Garden Entertainment Corp. has been hindered by near-term weakness in concert bookings and uncertainty in replacing the Billy Joel residency. The company's Q2 earnings missed estimates, with a quarterly earnings of $1.56 per share, underscoring the challenges in the live entertainment space. Additionally, the absence of a clear replacement for the Billy Joel residency has created uncertainty in the company's event-related revenue. Furthermore, the weak 2H25 bookings have dampened investor sentiment, leading to a downgrade from "buy" to "hold" by a prominent analyst.

1.c. Company Highlights

2. MSG's Strong Q1 Performance Driven by Concerts and Christmas Spectacular

The company's fiscal '26 first quarter saw revenues of $158.3 million, a 14% increase versus the prior year quarter, primarily driven by growth in the number of concerts at The Garden and the company's theaters, as well as higher per concert revenues. Adjusted operating income of $7.1 million increased $5.2 million as compared to the prior year quarter, reflecting the revenue growth, partially offset by higher SG&A and direct operating expenses. The actual EPS came out at '-0.46', beating estimates at '-0.59'. David Collins mentioned that "Our internal sales team is largely in place, positioning us to capitalize on opportunities in this fiscal year and beyond to drive growth."

Publication Date: Nov -20

📋 Highlights

Operational Highlights

The company's venues welcomed over 900,000 guests across 140 events, with a new record for the number of concerts in any quarter at The Garden. The majority of concerts across the portfolio of venues were sold out during the first quarter. The Christmas Spectacular is a premium entertainment product and remains well-priced, with the company confident in its ability to deliver strong growth this year. Advanced ticket revenues are pacing up double digits compared to this time last year.

Capital Allocation and Balance Sheet

The company repurchased approximately $25 million of its Class A common stock during the quarter, with around $45 million remaining under the current buyback authorization. As of September 30, the company had $30 million of unrestricted cash, while its debt balance was $622 million. Since the end of the quarter, the company has paid down the full $20 million revolver balance, and expects to generate substantial free cash flow as it progresses through the year.

Valuation and Outlook

With a P/S Ratio of 2.35 and an EV/EBITDA of 12.72, the market seems to be pricing in moderate growth expectations. Analysts estimate next year's revenue growth at 7.6%. Given the company's strong Q1 performance and confidence in delivering solid growth in revenue and adjusted operating income this fiscal year, it appears to be on track to meet or potentially exceed these expectations. The company's commitment to returning capital to shareholders and its focus on driving growth through concerts, family shows, and sports properties are positive indicators.

3. NewsRoom

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Madison Square Garden Entertainment: Waiting For A Better Entry Point

Nov -12

Source: seekingalpha.com

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New York City Celebrates the Radio City Rockettes Milestone 100th Anniversary

Nov -07

Source: businesswire.com

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Madison Square Garden Entertainment Corp. (MSGE) Q1 2026 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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MSG Entertainment (MSGE) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Nov -06

Source: zacks.com

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Madison Square Garden Entertainment (MSGE) Reports Q1 Loss, Beats Revenue Estimates

Nov -06

Source: zacks.com

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Madison Square Garden Entertainment Corp. Reports Fiscal 2026 First Quarter Results

Nov -06

Source: businesswire.com

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Y Intercept Hong Kong Ltd Buys Shares of 32,266 Madison Square Garden Entertainment Corp. $MSGE

Nov -03

Source: defenseworld.net

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Liberty Media Corporation – Liberty Formula One Series C (NASDAQ:FWONK) & Madison Square Garden Entertainment (NYSE:MSGE) Critical Comparison

Nov -02

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.31%)

6. Segments

Ticketing and Venue License Fee

Expected Growth: 4.5%

Strong demand for live events, increasing ticket prices, and strategic partnerships drive Ticketing and Venue License Fee growth at Madison Square Garden Entertainment Corp. Additionally, the company's iconic venues, such as MSG and Radio City Music Hall, continue to attract high-profile events, further boosting revenue.

Sponsorship and Signage, Suite, and Advertising Commission

Expected Growth: 4.2%

Madison Square Garden Entertainment Corp.'s 4.2% growth in Sponsorship and Signage, Suite, and Advertising Commission is driven by increasing brand partnerships, premium seating demand, and strategic advertising placements. The iconic venue's unique events and experiences attract high-value sponsors, while its state-of-the-art signage and media assets deliver strong ROI for advertisers.

Food, Beverage and Merchandise

Expected Growth: 3.8%

Madison Square Garden Entertainment Corp.'s 3.8% growth in Food, Beverage, and Merchandise is driven by increased event attendance, premium product offerings, and strategic pricing. Additionally, investments in digital signage and mobile ordering technology have enhanced the fan experience, leading to higher per-capita spending. Furthermore, the company's focus on premium hospitality and VIP experiences has contributed to revenue growth in this segment.

Arena License Agreements, Lease and Subleases

Expected Growth: 4.8%

The 4.8% growth in Arena License Agreements, Lease and Subleases from Madison Square Garden Entertainment Corp. is driven by increasing demand for live events, strategic partnerships, and venue renovations. Additionally, the company's focus on premium seating and hospitality offerings, as well as its efforts to expand its portfolio of iconic venues, contribute to the growth.

Other

Expected Growth: 4.0%

Madison Square Garden Entertainment Corp.'s 4.0% growth is driven by increasing demand for live entertainment, strategic partnerships, and expansion of its venue portfolio. Additionally, growth in ticket sales, premium seating, and sponsorship revenue contribute to the company's upward trend.

7. Detailed Products

Live Events

Madison Square Garden Entertainment Corp. hosts various live events such as concerts, sports games, and comedy shows at its iconic venues including Madison Square Garden, Radio City Music Hall, and Beacon Theatre.

Sports Teams

The company owns and operates several sports teams including the New York Knicks (NBA) and the New York Rangers (NHL).

Venue Rentals

Madison Square Garden Entertainment Corp. offers its iconic venues for private events, meetings, and conferences.

Ticketing and Sponsorship

The company provides ticketing services for events at its venues and offers sponsorship opportunities for brands.

Media and Entertainment

Madison Square Garden Entertainment Corp. produces and distributes original content including TV shows, documentaries, and live events.

8. Madison Square Garden Entertainment Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Madison Square Garden Entertainment Corp. is medium due to the availability of alternative forms of entertainment, such as streaming services and outdoor activities. However, the company's unique venues and events help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand recognition and the unique nature of its events and venues. Customers have limited alternatives and are often willing to pay a premium for the company's offerings.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on a few key suppliers for its events and venues. However, the company's size and scale help to mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the entertainment and venue management industry. The company's established brand and existing infrastructure make it difficult for new entrants to compete.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the entertainment and venue management industry. The company faces intense competition from other event promoters, venues, and entertainment companies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 108.34%
Debt Cost 5.88%
Equity Weight -8.34%
Equity Cost 10.31%
WACC 5.51%
Leverage -1299.69%

11. Quality Control: Madison Square Garden Entertainment Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Marcus

A-Score: 4.8/10

Value: 7.4

Growth: 4.0

Quality: 4.6

Yield: 3.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Sphere Entertainment

A-Score: 4.3/10

Value: 7.7

Growth: 2.1

Quality: 4.2

Yield: 0.0

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Madison Square Garden Entertainment

A-Score: 4.2/10

Value: 3.5

Growth: 4.3

Quality: 4.3

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

1-Year Total Return ->

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Gaia

A-Score: 3.8/10

Value: 5.7

Growth: 4.0

Quality: 4.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
LiveOne

A-Score: 3.8/10

Value: 9.6

Growth: 6.8

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

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Dave & Buster's

A-Score: 3.1/10

Value: 6.3

Growth: 5.9

Quality: 3.3

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

51.83$

Current Price

51.83$

Potential

-0.00%

Expected Cash-Flows