MSGS - MSG Sports dips as profits fall short despite boost from extra Rangers games

Madison Square Garden Sports ( NYSE: MSGS ) is 3.8% lower Tuesday morning after its adjusted profits fell short of expectations despite a 38% jump, and better-than-expected revenue growth.

Revenues rose 22% to $353.7M, sharply better than expected, thanks largely to broad gains in pre/regular-season ticket-related revenues (which rose by $29.7M), suite license fee revenues (up $12.5M), sponsorship and signage revenues (up $10M), food, beverage and merchandise sales (up $4M), local media rights fees (up $3.9M) and league distribution revenues (up $3.2M).

The New York Rangers also played six more regular-season home games in the current-year period vs. the prior year, boosting the ticket-related and suite license fee revenues, as well as corresponding gains in sponsorship/signage and food/beverages/merchandise.

Operating income jumped 43% to $51.5M, and adjusted operating income rose 38% to $76.6M.

Direct operating expenses jumped 17% to $225.7M, in part due to higher payrolls, and selling, general and administrative costs jumped 27%.

Our second quarter results reflect ongoing positive momentum across all key areas of our business following last year's robust financial performance," said Executive Chairman James Dolan. "We are confident in the strength of our sports franchises and our ability to generate long-term value for shareholders.

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