Even though the coronavirus shutdown began just three weeks before the end of the quarter, Madison Square Garden Entertainment’s revenues dropped 20% to $199.9 million compared with last year, according to results released Monday.
The company, which recently divided its entertainment and sports operations into two divisions, saw its operating losses for the three-month period ended March 31 go from $18.6 million in the same quarter last year to $145.5 million this year, while its adjusted operating income dropped $25.2 million to a $7.2 million loss
MSGE said the operating loss includes $102.2 million in “non-cash impairment charges” for its Tao Group Hospitality dining and nightlife division, which has been hit hard by the shutdown and closed one venue permanently.
The company has seen all of its venues shuttered, which include Madison Square Garden, Chicago Theatre and the Tao Group, and it leases New York’s Radio City Music Hall and Beacon Theater. Consequently, its operating expenses were also down significantly, dropping $26 million to $132.8 million.
The company also said that the ambitious and futuristic MSG Sphere arena in Las Vegas is not expected to open as planned in 2021 due to construction delays related to the pandemic. The company announced the Sphere, and another in London that is pending approvals, in an elaborate presentation in 2018.
The company said that it had approximately $1.4 billion in cash and cash equivalents and short-term investments as of May 1, including the net proceeds from the sale of the Forum arena in Inglewood, Calif. to Clippers owner Steve Ballmer.
The company did not hold an earnings call, but executive chairman and CEO James L. Dolan said in a statement, “With the MSG Entertainment spin-off complete, we believe we have created a company that will expand on our track record of creating long-term value for shareholders. Our Company has been in the business of bringing people together for decades, and we are confident that we are well-positioned to weather these uncertain times. We believe the public’s innate desire to be part of shared experiences will continue and we look forward to opening our doors for unforgettable events yet to come.”