MSG Sports reports wider-than-expected loss and surprise negative revenue

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Madison Square Garden Sports Corp. reported Friday a wider-than-expected fiscal fourth-quarter loss and a surprise negative revenue, as parent of the New York Knicks and New York Rangers sports teams had their seasons suspended as a result of the COVID-19 pandemic. The net loss for the quarter to June 30 was $78.5 million, or $3.27 a share, after a loss of $73.2 million, or $3.08 a share, in the year-ago period. The FactSet consensus for net losses per share as $2.14. Revenue swung to a negative $7.0 million from $68.15 million, compared with the FactSet consensus of revenue of $12.4 million. When the NBA basketball and NHL hockey seasons were suspended in March, the Knicks had 16 games remaining (8 home games) and the Rangers had 12 games remaining (5 home games). When the seasons resumed, the Knicks were not part of the NBA’s re-start. The company said it had $293 million of liquidity as of June 30 while total debt outstanding was $350 million. “We remain confident in our company’s future prospects and are comfortable that we have the financial flexibility to navigate through this period of uncertainty,” said Chief Executive Andrew Lustgarten. The stock, which was still relatively inactive in premarket trading, has lost 20.3% year to date, while the S&P 500 has gained 4.4%.
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