MSG Income Slips

Madison Square Garden Co.’s net income took a slip in its first fiscal quarter, facing increased expenses related to events and investments in MSG’s entertainment segment and higher programming costs at the company’s Fuse television network.

The company reported during a Nov. 2 earnings call that net income fell 26 cents per share to $20.6 million, down from $21.3 million, or 28 cents per share, in Q1 2012.

Still, MSG managed to beat analyst estimates that had predicted earnings of 19 cents per share on revenues of $204.1 million for the period. 
Company revenue was mainly bolstered by MSG’s media division, which took in higher fees from affiliates, increasing revenues to $204.2 million, up from $177.6 million last year.
CEO Hank Ratner said during the call that MSG venues in the NYC market including Madison Square Garden, Radio City Music Hall and Beacon Theater emerged from the recent Hurricane Sandy unscathed.
But he also noted that ongoing renovations at the Garden will diminish capacity at the venue for the coming season as work continues on suites and other enhancements to the facility. 
Looking to the West Coast, MSG Entertainment President Melissa Ormond added the company continues to finalize renovation plans for The Forum in Inglewood, Calif. The building is not scheduled to open for events in fiscal 2013.
MSG stock rose 8 cents following the report and closed that day at $41.53.