MSGE - MSGE stock up after robust results reports say company to sell former Hulu Theater for $1B

2023-05-18 14:21:38 ET

Shares of Madison Square Garden Entertainment ( NYSE: MSGE ) rose as much as 22.1% after the owner of the namesake venue reported a profit and revenue beat for the third quarter.

The company, which also owns Radio City Music Hall and Beacon Theatre, posted Q3 GAAP EPS of $0.42, beating estimates by 21 cents. Revenue of $201.23 million was up 3.7% from last year and ahead of expectations by $9.23 million.

The venue operator said it continued to benefit from "robust consumer and corporate demand" for live experiences during the quarter and is on track to host nearly 900 events and more than 5 million guests at its venues in fiscal 2023.

"The majority of concerts held at the company's venues continue to sell out, while in-venue per-capita spending continues to exceed results for the prior year," the company said in a statement.

In an earnings call , CFO Dave Byrnes said the company's events business is currently projecting a "double-digit" percentage increase for next year.

The company, which completed its spin-off from Sphere Entertainment last month, said it now expects revenue of $835–845 million, operating income of $85–95 million, and adjusted operating income of $145–155 million for 2023.

Separately, the company is nearing a $1 billion sale of the Theater at Madison Square Garden , according to a Crain's New York report from late Wednesday, which cited people familiar with the matter.

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