MSG Networks Reports Fiscal 2021 First Quarter Results

11/2/20

NEW YORK--(BUSINESS WIRE)--MSG Networks Inc. (NYSE: MSGN) today reported financial results for the fiscal first quarter ended September 30, 2020.

For the fiscal 2021 first quarter, MSG Networks Inc. generated revenues of $157.4 million, a decrease of 2% as compared with the prior year period. In addition, the Company generated operating income of $67.9 million, a decrease of less than 1%; adjusted operating income of $74.4 million, a decrease of less than 1%; and net income of $35.0 million, a decrease of 19%; all as compared with the prior year period.(1)

President and CEO Andrea Greenberg said, “We experienced strong engagement and advertising results during our fiscal first quarter tied to the return of live sports to our networks, which we believe firmly underscores the importance of our live local sports content and the value it delivers to our affiliates, advertisers and fans. While we await the start of the 2020-21 NBA and NHL seasons, we continue to introduce new content to engage our viewers, while we navigate the ever-changing media landscape which remains impacted by the ongoing COVID-19 pandemic.”

Summary of Reported Results from Operations

Fiscal 2021 first quarter total revenues of $157.4 million decreased 2%, or $3.6 million, as compared with the prior year period. Affiliation fee revenue decreased $7.2 million, primarily due to the impact of a decrease in subscribers of approximately 8.5% and, to a lesser extent, an unfavorable $1.0 million affiliate adjustment recorded in the current year quarter. This was partially offset by the impact of higher affiliation rates and, to a lesser extent, the absence of an unfavorable $0.7 million affiliate adjustment recorded in the prior year quarter.

Advertising revenue increased $3.6 million due to the New York Rangers’ and Islanders’ participation in the 2019-20 NHL return to play.

Selling, general and administrative expenses of $22.5 million increased 1%, or $0.2 million, as compared with the prior year period, primarily due to higher advertising sales commissions, partially offset by lower professional fees. The decrease in professional fees reflects the absence of $1.0 million in expenses recorded in the prior year period that were not indicative of the Company's core expense base, partially offset by other net increases.

Operating income of $67.9 million and adjusted operating income of $74.4 million both decreased $0.3 million, or less than 1%, as compared with the prior year period, primarily due to the decrease in revenues and, to a lesser extent, higher selling, general and administrative expenses, largely offset by lower direct operating expenses.

About MSG Networks Inc.

MSG Networks Inc., a pioneer in sports media, owns and operates two award-winning regional sports and entertainment networks and a companion streaming service that serve the nation’s number one media market, the New York DMA, as well as other portions of New York, New Jersey, Connecticut and Pennsylvania. The networks feature a wide range of compelling sports content, including exclusive live local games and other programming of the New York Knicks, New York Rangers, New York Islanders, New Jersey Devils and Buffalo Sabres, as well as significant coverage of the New York Giants and Buffalo Bills. This content, in addition to a diverse array of other sporting events and critically acclaimed original programming, has established MSG Networks as the gold standard in regional sports.

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