Q2 2024 Madison Square Garden Entertainment Corp Earnings Call

Operator: Good morning. Thank you for standing by, and welcome to the Madison Square Garden Entertainment Corp. fiscal 2024 second quarter earnings conference call. At this time, all participants are in listen only mode.

Good morning, Thank you for standing by and welcome to the Madison Square Garden Entertainment Corp. Fiscal 2024 second quarter earnings Conference call. At this time all participants are in listen only mode. After the Speakers' remarks, there will be a question and answer session I would now like to turn the call over to Ari Danes Senior Vice.

Operator: After the speaker's remarks, there will be a question and answer session. I would now like to turn the call over to Ari Danes, Senior Vice President, Investor Relations, and Treasury. Please go ahead.

Ari Danes: President Investor Relations and Treasury. Please go ahead.

Ari Danes: Thank you. Good morning, and welcome to MSG Entertainment's Fiscal 2024 Second Quarter Earnings Conference Call. On today's call, Philip D'Ambrosio, our EVP and Treasurer and our Interim Principal Financial Officer, will provide an update on the company's operations. I will then conclude with a review of our financial results for the period. After our prepared remarks, we will open the call for questions. If you do not have a copy of today's earnings release, it is available in the investor section of our corporate website.

Ari Danes: Thank you good morning, and welcome to MSG Entertainments fiscal 2024 second quarter earnings Conference call.

Ari Danes: On today's call build ambrogio, our EVP and treasurer and our interim principal financial officer will provide an update on the company's operations I will then conclude with a review of our financial results for the period.

Ari Danes: After our prepared remarks, we will open up the call for questions. If you do not have a copy of today's earnings release. It is available on the investors section of our corporate website.

Ari Danes: Please take note of the following. Today's discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statement. Please refer to the company's filings with the SEC for a discussion of risks and uncertainties. The company disclaims any obligation to update any forward-looking statements that may be discussed during this call. On pages 4 and 5 of today's earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income or AOI, a non-GAAP financial measure. And with that, I'll now turn the call over to Phil.

Ari Danes: Please take note of the following.

Today's discussion may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

Any such forward looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements.

Please refer to the company's filings with the SEC for a discussion of risks and uncertainties.

Ari Danes: The company disclaims any obligation to update any forward looking statements that may be discussed during this call.

Ari Danes: On pages, four and five of today's earnings release.

Ari Danes: Provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income or non-GAAP financial measures.

Ari Danes: And with that I'll now turn the call over to Phil.

Philip Gerard DAmbrosio: Thank you, Ari, and good morning. With the first half of the fiscal year behind us, we remain on track to generate robust revenue and Aoi Groves for Fiscal 24. We continue to benefit from strong demand for shared in-person experiences, most notably across our bookings business and the Christmas Spectacular Production. On the bookings front, we believe we're well positioned to achieve a low double-digit percentage increase in events for fiscal 24. Four of our venues are on track to exceed our initial expectations for concerts this year. Cody McGaurd, www.youtube.com/ac, is on pace to set a new record for the number of concerts at the arena on a full year basis. And last month, the Christmas Spectacular successfully completed its 90th holiday season.

Phil: Thank you Ari and good morning, everyone.

Phil: Well the first half of the fiscal year behind US we remain on track to generate robust revenue and NOI growth for fiscal 'twenty four we.

Phil: Continuing to benefit from strong demand for shared in person experiences.

Phil: Notably across our bookings business and the Christmas spectacular production.

Phil: On the bookings front, we believe we're well positioned to achieve a low double digit percentage increase in events for fiscal 'twenty four.

Phil: Four of our venues are on track to exceed our initial expectations.

Phil: Concerts, this year, including the Guardian, which is on pace to set a new record for the number of concerts at the arena on a full year basis.

Phil: And last month, the Christmas spectacular successfully completed its ninth year of holiday season.

Philip Gerard DAmbrosio: Production Delivering Another Year of Record-Setting Revenue, with over 1 million tickets sold, which represents a return to pre-pandemic attendance levels, as a result of the positive momentum across our operation. We are now increasing our financial targets for fiscal 24, which Ari will discuss later in more detail. In addition, the strength of our business has also enabled us to make progress on our capital allocation priority of Opportunistically Returning Capital to Shareholders and Debt Paydown. Since I was spit out last April, we have repurchased approximately $140 million, or about 10% of our outstanding Class A share. And in the most recent quarter, we fully paid down the remaining balance on our revolving credit facility, which, as you may recall, we had drawn upon in September primarily to facilitate a repurchase of our shares.

Phil: Production delivered another year of record setting revenues with over 1 million tickets sold which represents a return to pre pandemic attendance levels.

Phil: As a result of the positive momentum across our operations.

Phil: We are now increasing our financial targets for fiscal 'twenty four.

Phil: Art will discuss later in more detail.

Art: In addition, the strength of our business has also enabled us to make progress on our capital allocation priorities of.

Art: Of Opportunistically, returning capital to shareholders and debt Paydown.

Art: Since our spin off last April we have repurchased approximately $140 million or about 10% of our outstanding class a shares.

Art: And in the most recent quarter, we fully paid down the remaining balance on our revolving credit facility, which as you may recall, we had drawn upon in September primarily to facilitate a repurchase of our shares.

Philip Gerard DAmbrosio: Now let's review the second quarter operational highlights. Across our portfolio of venues, we hosted nearly 450 live entertainment and sporting events and over 2.7 million guests in our second quarter. Our bookings business generated robust growth on a year-over-year basis, led by increases in the number of concerts and family shows held at our venue. One of the key drivers of concert growth was our continued efforts to increase the number of multi-night shows. For example, in the fiscal second quarter, we welcome comedians Trevor Noah and Nate Borgazzo, who combined accounted for 23 sold-out nights at Cross Radio City, The Beacon, and the Chicago Theater.

Art: Now, let's review second quarter operational highlights.

Art: Across our portfolio of venues, we hosted nearly 450 live entertainment and sporting events and over $2 7 million guests in our second quarter.

Art: Our bookings business generated a robust growth on a year over year basis led by increases in the number of concerts and family shows held at our venues.

Art: The key drivers of concert growth was our continued efforts to increase our number of multi night shows for example in the fiscal second quarter, we welcomed comedians Trevor Noah and Nate for Godfrey, who combined accounted for 23 sold out nights across radio city, the Beacon and the Chicago Theatre.

Philip Gerard DAmbrosio: These shows, along with numerous other multi-night performances, helped drive a double-digit percentage increase in total concerts versus the prior year quarter. Furthermore, this robust supply of concerts across our venues was once again met by strong consumer demand, with a majority of concerts selling out during the quarter. In addition to concerts, family shows were an important contributor to event growth. After last taking place in 2021 with a shortened run due to the pandemic, we welcomed back Cirque du Soleil's holiday show, Twas the Night Before, to the theater at MSG and the Chicago Theater for a total of 56 performances.

Art: These shows along with numerous other multi night performances helped to drive a double digit percentage increase in total concerts versus the prior year quarter.

Art: Furthermore, this robust supply of concerts across our venues was once again led by strong consumer demand with the majority of contracts selling out during the quarter.

Art: In addition to concerts family shows were an important contributor to a bankrupt.

Art: After the last taking place in 2021 with a shortened one due to the pandemic. We welcome back so just delays holiday show towards the night before.

Art: The theater at MSG, and the Chicago Theatre for a total of 56 performances.

Philip Gerard DAmbrosio: While family shows have lagged other categories, such as concerts, coming out of the pandemic, we were pleased to see strong demand for CERC's holiday run, which led to results that meaningfully exceeded our expectations in both markets. During the quarter, we also saw the start of the Knicks and Rangers 2023-24 regular seasons at the Garden.

While family shows have lagged other categories such as concerts.

Art: Coming out of the pandemic, we were pleased to see strong demand for Starbucks holiday run, which led to results that meaningfully exceeded our expectations in both markets.

Art: During the quarter. We also saw the start of the Knicks and Rangers 2023, 24 regular seasons at the garden.

Philip Gerard DAmbrosio: I would note, as a result of this year's schedules, the Knicks and the Rangers played a combined nine fewer home games this past quarter as compared to the prior year's second quarter. This timing impact will reverse itself over the balance of the fiscal year. Turning to this holiday season's successful Christmas Spectacular production, while we initially planned for 185 performances, we ended up increasing the number of shows to 193 in light of strong ticket demand. Compared to 181 shows last year,

Art: Note that as a result of this year's schedules the Knicks and the Rangers played a combined nine fewer home games this past quarter as compared to the prior year second quarter.

Art: This timing impact will reverse over the balance of the fiscal year.

Turning to this holiday season successful Christmas spectacular production.

Art: While we initially planned for 185 performances, we ended up increasing the number of shows to 193 in light of strong ticket demand <unk>.

Art: This compared to 181 shows last year.

Philip Gerard DAmbrosio: As I mentioned, we sold over 1 million tickets across seven weeks of performances. We saw healthy demand across group and individual ticket sales, both of which benefited in part from the continued improvement in tourism to New York City. Groups were particularly strong, with an over 40% increase in sales as compared to last year, as this category bounced back post-pandemic. Average per show revenue increased by a mid single-digit percentage versus fiscal 23. This is driven by both higher average ticket prices and higher sell-through, as well as higher food, beverage, and merchandise per capita spending.

Art: As I mentioned, we sold over 1 million tickets across seven weeks of performance as we saw healthy demand across group and individual tickets sales.

Art: Both of which benefited in part from the continued improvement in tourism to New York City.

Art: Routes were particularly strong with an over 40% increase in sales as compared to last year at this category bounce back post pandemic.

Art: Average per show revenue increased a mid single digit percentage versus fiscal 'twenty three.

Art: Driven by both higher average ticket prices and higher sell through as well as higher food beverage and merchandise per capita spending.

Philip Gerard DAmbrosio: Despite the significant increase in group ticket sales, which carry a lower price, we were able to increase our overall average ticket price by leveraging dynamic pricing during peak periods and substantially reducing the sale of discounted individual tickets. All of these factors, the increase in shows, higher average ticket revenue, and higher ancillary spending led to the Christmas Spectacular generating nearly $150 million in revenues this year, a new record for the production and a testament to the show's enduring popularity.

Art: Despite the significant increase in group ticket sales, which carry lower prices.

Art: We're able to increase our overall average ticket price by leveraging dynamic pricing during peak periods.

Art: <unk> substantially reducing the sale of discounted individual tickets.

All of these factors the increasing shows higher average ticket revenue and higher ancillary spending led to the Christmas spectacular generating nearly $150 million and revenues. This year, a new record quarterly production and a testament to the shows enduring popularity.

Art: Turning to marketing partnerships and premium hospitality.

Philip Gerard DAmbrosio: Turning to Marketing Partnerships and Premium Hospitality, coming out of the pandemic, we successfully renewed many of our key marquee and signature partners. [inaudible] We also continue to make progress in transitioning our sponsorship sales efforts to Oakview Group's Crown Properties collection and remain confident about the longer-term growth opportunity for this business. In terms of premium hospitality, our two new sweet products at the garden and event level and a luxury event level club space have been well received.

Art: Coming out of the pandemic, we successfully renewed many of our key marquee and signature partners, which represent the majority of our sponsorship revenue.

Art: Also continued to make progress in transitioning our sponsorship sales efforts to Oak view group Crown properties collection and remain confident about the longer term growth opportunity for this business.

Art: In terms of premium hospitality, our two newest suite products at the garden.

Art: At level suite.

Art: And the luxury of that level club space have been well received.

Art: We have already secured a multiyear agreement for the event level suite, while the event local club is nearly sold out.

Art: In summary, our fiscal second quarter was a reflection of the strong demand we continue to see in our business, leaving us increasingly confident in our ability to deliver robust growth this fiscal year and to generate long term value for our shareholders.

Ari Danes: We've already secured a multi-year agreement for the event-level suite, while the event-level club is nearly sold out. In summary, our fiscal second quarter was a reflection of the strong demand we continue to see in our business. leaving us increasingly confident in our ability to deliver robust growth this fiscal year and to generate long-term value for our shareholders. Before I turn the call over to Ari, I would like to welcome Michael Grau, who is joining the company as Executive Vice President of Finance and Administration and will then assume the responsibilities of Chief Financial Officer on April 1st. Mike is a seasoned leader with decades of financial and operating experience and will help us continue to drive our business priorities forward. With that, I will now turn the call over to Ari. Thank you, Phil.

Speaker Change: Before I turn the call over to Ari I would like to welcome Michael Grout.

Michael Grout: Joining the company as executive Vice President of Finance and we will then assume the responsibilities of Chief Financial Officer on April 1st.

Michael Grout: Mike is a seasoned leader with decades of financial and operating experience and will help us continue to drive our business priorities forward.

Michael Grout: With that I will now turn the call over to Ari.

Ari Danes: Thank you Phil as you know our company completed its spin off from sphere Entertainment in April of last year. As a result, our fiscal second quarter results are not fully comparable on a year over year basis.

Ari Danes: For the prior year quarter are based on carve out accounting and do not reflect all of the SG&A expenses would have incurred had we been a standalone public company.

Ari Danes: For the fiscal 2020 for second quarter, we reported revenues of $402 7 million, an increase of $46 8 million or 13% as compared to the prior year quarter.

Ari Danes: As you know, our company completed its spinoff from Sphere Entertainment in April of last year. As a result, our fiscal second quarter results are not fully comparable on a year over year basis. Results for the prior year quarter are based on carve-out accounting and do not reflect all of the SG&A expenses we would have incurred had we been a standalone public company.

Ari Danes: The increase in revenues was primarily driven by higher event related revenues, which reflects the increase in the number of events at our venues and to a lesser extent higher average revenue per event.

Ari Danes: The increase in overall revenues also reflects growth from the Christmas spectacular production.

Ari Danes: Primarily due to higher ticket related revenues. This was driven by higher per show revenue and to a lesser extent nine additional performances.

Ari Danes: For the fiscal 2024 second quarter, we reported revenues of $402.7 million, an increase of 46.8 million, or 13%, as compared to the prior year quarter. The increase in revenues was primarily driven by higher event-related revenues, which reflect the increase in the number of events at our venues and, to a lesser extent, higher average revenue per event. The increase in overall revenues also reflects growth from the Christmas Spectacular production, primarily due to higher ticket-related revenue. This was driven by higher per show revenue and, to a lesser extent, nine additional performances as compared to the prior year quarter. Second quarter adjusted operating income of $151 million increased by $24.7 million as compared to the prior year quarter.

Ari Danes: Compared to the prior year quarter.

Ari Danes: Second quarter, adjusted operating income of $151 million increased by $24 $7 million as compared to the prior year quarter.

Ari Danes: This increase primarily reflects the year over year increase in revenues, partially offset by an increase in direct operating expenses and to a lesser extent higher SG&A expenses.

Ari Danes: And as I, just mentioned second quarter SG&A expenses are not fully comparable on a year over year basis.

Ari Danes: Moving on to our fiscal 'twenty four outlook.

Ari Danes: Given the strong performance of our business along with the visibility we now have into the remainder of the year, we are increasing our financial guidance for fiscal 'twenty four.

Ari Danes: We now expect revenues of between 930 and $950 million up from between 909 hundred $30 million.

Ari Danes: Midpoint of our revised range now reflects 10% revenue growth versus fiscal 2023.

Ari Danes: This increase primarily reflects the year-over-year increase in revenues, partially offset by an increase in direct operating expenses and, to a lesser extent, higher SG&A expenses. And as I just mentioned, second quarter SG&A expenses are not fully comparable on a year-over-year basis. Moving on to our fiscal 24 outlook, given the strong performance of our business, along with the visibility we now have into the remainder of the year, we are increasing our financial guidance for fiscal 24. We now expect revenues of between $930 and $950 million, up from between $900 and $930 million. The midpoint of our revised range now reflects 10% revenue growth versus fiscal 2020. We also expect operating income for the year of between $95 and $105 million versus our prior range of $85 to $95.

Ari Danes: We also expect operating income for the year of between 95 and $105 million versus our prior range of <unk> 85 to 95 million.

Ari Danes: And adjusted operating income is now expected to be between 170 and $180 million versus $160 million to $170 million previously.

Ari Danes: With respect to our fiscal third quarter, we expect results to reflect strong ongoing performance in concert bookings offset by the absence of the NCAA tournament at the garden this year.

Ari Danes: The positive timing amidst the Rangers games at the arena versus the prior year quarter.

Ari Danes: And the continued impact of our new corporate offices.

Ari Danes: Turning to our balance sheet.

Ari Danes: December 31, we had approximately $35 million in unrestricted cash and our debt balance was approximately $634 million.

These balances reflect the repayment of $90 million or the remaining outstanding balance under our revolving credit facility during the quarter.

Ari Danes: As Phil mentioned, we remain focused on our dual capital allocation priorities of Opportunistically, returning capital to shareholders and debt pay down and as a reminder, we continue to have $110 million remaining under our current buyback authorization.

Ari Danes: And adjusted operating income is now expected to be between $170 and $180 million versus $160 to $170 million previously. With respect to our fiscal third quarter, we expect results to reflect strong ongoing performance and concert bookings, offset by the absence of the NCAA tournament at the Garden this year. The positive timing of Mixin' Rangers games at the Arena versus the prior year quarter and the continued impact of our new corporate office. Turning to our balance, As of December 31st, we had approximately $35 million in unrestricted cash, and our debt balance was approximately $634 million. These balances reflect the repayment of $90 million, or the remaining outstanding balance under our revolving credit facility during the quarter.

Speaker Change: With that operator can we now open up the call for questions.

Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad. Your first question comes from the line of Peter Henderson from Bank of America. Your line is open.

Peter Henderson: Good morning, and thank you for taking the question so.

Peter Henderson: Earlier in this fiscal year, you had flagged three areas of growth and bookings concerts family business and special events can you give us an update into the visibility for the remaining fiscal year for each of those three areas.

Peter Henderson: Sure.

Speaker Change: Good morning, Peter let.

Speaker Change: Let me start by saying our visibility is solid for the balance of the fiscal year.

Speaker Change: And beginning with concerts as I mentioned earlier more of our venues are on track to exceed our initial expectations for contracts this year.

Ari Danes: As Phil mentioned, we remain focused on our dual capital allocation priorities of opportunistically returning capital to shareholders and debt pay-down. And as a reminder, we continue to have one hundred and ten million dollars remaining under our current buyback authorization. With that operator, can we now open up the call for questions? At this time, I would like to remind everyone that in order to ask a question, press star, then the number 1 on your telephone keypad. Your first question comes from the line of Peter Henderson from Bank of America. Your line is open.

Speaker Change: And that includes the garden.

Speaker Change: Where we are on track to set a new record for the number of concerts on a full year basis.

Speaker Change: So overall, we now have complete visibility into our original contract bookings goal and we expect to exceed it.

With regard to family shows the vast majority of our business took place in the fiscal second quarter.

Speaker Change: This plays a much smaller role as we look out for the balance of fiscal 'twenty four.

Speaker Change: And then with special events.

Speaker Change: This is our smallest bookings category and the bulk of this business typically occurs in the fiscal fourth quarter.

Speaker Change: And I would add that this area of our business is coming on softer than originally expected.

Speaker Change: A factor is that this category has been slower to recover coming out of the pandemic, but.

Speaker Change: Part of the reason is that we've prioritized booking concerts, which are generally more profitable. So overall, we feel really good about our bookings calendar for the balance of fiscal 2004, and we remain on track for a low double digit percentage increase in bookings this year.

Philip Gerard DAmbrosio: Good morning, and thank you for taking the question. So early in the fiscal year, you had flagged three areas of growth in bookings, concerts, family business, and special events. Can you give us an update on the visibility for the remaining fiscal year for each of those three areas? Sure. Good morning, Peter.

Speaker Change: Thank you.

Speaker Change: Thank you.

Speaker Change: Your next question comes from the line of Stephen <unk> from Goldman Sachs. Your line is open.

Stephen: Hey, great and maybe just to expand on Peter's question, a little bit there. Thank you for an update on the commentary for fiscal 'twenty four but maybe as we look out to fiscal 'twenty five could you talk a little bit more about the visibility you have.

Philip Gerard DAmbrosio: Let me start by saying our visibility is solid for the balance of the fiscal year. [inaudible] As I mentioned earlier, four of our venues are on track to exceed our initial expectations for concerts this year, and that includes the garden, where we're on track to set a new record for the number of concerts on a full year basis. So overall, we now have complete visibility into our original concert's booking goal, and we expect to exceed it. With regard to family shows, the vast majority of our business took place in the fiscal second quarter. So this plays a much smaller role as we look out for the balance of fiscal 24, and then with special events. First, this is our smallest bookings category, and the bulk of this business typically occurs in the fiscal fourth quarter.

Stephen: So the pacing of bookings across with any footprint the garden, the theaters and maybe how that compares to.

What you've seen in prior years at this point in the year.

Stephen: And then secondly on corporate demand and sponsorship could you speak to any changes youre seeing on the demand front for corporates and then advertisers just as you look into fiscal 'twenty five perhaps beyond the new suites at the garden and what are some of the key growth drivers, we should be thinking about.

Stephen: As we take a look at that segment for the next 12 to 24 months. Thank you.

Speaker Change: Hi, Stephen It's <unk> I'll take your first question and then I'll turn it over to Phil for the second one so in terms of.

Philip Gerard DAmbrosio: And I would add that this area of our business is coming on softer than originally expected. A factor is that this category has been slower to recover coming out of the pandemic, but part of the reason is that we've prioritized booking concerts, which are generally more profitable. [inaudible] Thank you.

Phil: How we're looking for fiscal 'twenty five from a bookings pacing standpoint.

Speaker Change: You know the typical bookings lead time for concerts at the garden is about six to nine months out. So it is still early that being said our visibility is beginning to build for the first half of fiscal 'twenty five at the garden.

Speaker Change: And I am pleased to say that we're currently pacing ahead by a fairly strong double digit percentage in terms of the number of concerts for the first half of fiscal 'twenty five at the arena versus where we were same time last year.

Ari Danes: Your next question comes from the line of Stephen Laszczyk from Goldman Sachs. Your line is open. Hey, Graham, maybe just to expand on Peter's question a little bit there. Thank you for some of the update on the commentary for Fiscal 24. But maybe, as we look out to Fiscal 25, could you talk a little bit more about the visibility you have into the pacing of bookings across the venue footprint, the garden, the theaters, and maybe how that compares to what you've seen in prior years at this point in the year? And then, secondly, on corporate demand and sponsorship, could you speak to any changes you're seeing on the demand front for corporates and advertisers, just as you What are some of the key growth drivers we should be thinking about as we take a look into that segment for the next 12 to 24 months? Thank you.

Speaker Change: In terms of the theater is also I think as you know the typical bookings lead time for a concert at around 3% to six months out. So it's still a little bit early there I think we'll know more of a few months from now, but we're really pleased with how we've gone off to in terms of fiscal 'twenty five.

Speaker Change: And I'll turn it over to Phil for your second question.

Phil: Thanks, Alright.

Phil: So with regard to what we're seeing.

From corporate and advertisers.

Phil: For sponsorship and suites.

Phil: We first start by saying, we're not seeing a change in demand.

Phil: Our demand remains vibrant and if we begin with with suites and premium hospitality.

Phil: We're seeing strong demand from corporate partners and this is poised for growth in this area of our business.

Phil: And thats versus last year's results.

Phil: Recall, we were already above pre pandemic levels.

Phil: We're benefiting from strong suite renewals and even new sales, including our two new event level suites that.

Phil: As I mentioned, we introduced in October.

Ari Danes: Hi Stephen, it's Ari. I'll take your first question, and then I'll turn it over to Phil for the second one. So in terms of how we're looking for fiscal 25 from a bookings pacing standpoint, as you know, the typical booking lead time for concerts at the Garden is about six to nine months out. So it is still early. That being said, our visibility is beginning to build for the first half of fiscal 25 at the Garden, and I'm pleased to say that we're currently pacing ahead by a fairly strong double-digit percentage in terms of the number of concerts for the first half of fiscal 25 at the arena versus where we were at the same time last year. In terms of the theaters, also, I think, as you know, the typical booking lead time for concerts is around So it's still a little bit early there.

Phil: Moving on to the sponsorship business.

Phil: As you know we have a long track record of success.

Phil: With tears with wonderful results over the past several years and now we're exceeding pre pandemic levels.

Phil: This fiscal year happens to be a year in which we are light in terms of deals coming up for renewal and those renewals typically reset rates and drive additional growth.

Phil: But that said, we've recently entered into a new relationship with <unk> group.

Who is handling our sponsorship sales efforts and we think having them our sales.

Phil: There is a good way to take our sponsorship.

Level, our sponsorship business to a new level and to grow the business in the future years.

Phil: So while it's still early with a few group we're excited about the opportunity of partnering together to drive additional sponsorship growth.

Speaker Change: Great. Thank you Beth.

Speaker Change: Your next question comes from the line of Ben Swinburne from Morgan Stanley. Your line is open.

Philip Gerard DAmbrosio: I think we'll know more a few months from now, but we're really pleased with how we've gotten off to in terms of fiscal 25. And I'll turn it over to Phil for your second question. Thanks, Ari.

Benjamin Daniel Swinburne: Hey, good morning, Bill good morning Ari.

Benjamin Daniel Swinburne: Two questions I wanted to ask you guys about margin performance as you guys look out into <unk>.

Benjamin Daniel Swinburne: Into the forecast and then also.

Benjamin Daniel Swinburne: Come back to your comment in the prepared remarks about the use of dynamic pricing I think your new guidance suggests margins will be up something like 50 basis points year on year.

Philip Gerard DAmbrosio: So with regard to what we're seeing from corporate and advertisers for sponsorship and suites, let me first start by saying we're not seeing a change in demand. Our demand remains vibrant, and if we begin with suites and premium hospitality, We're seeing strong demand from corporate partners, and this is poisonous for growth in this area of our business. And that's versus last year's results, where you might recall we were already above pre-pandemic levels.

Benjamin Daniel Swinburne: Maybe 40 basis points year on year versus pro forma 'twenty three.

Benjamin Daniel Swinburne: Can you talk a little bit about your opportunity to grow margins in the business as you look out over time, particularly if these top line trends continue is that an objective for.

Philip Gerard DAmbrosio: We're benefiting from strong suite renewals and even new sales, including our two new event level suites. [inaudible] Moving on to the sponsorship business, as you know, we have a long track record of success, with years of wonderful results over the past several years. And now we're exceeding pre-pandemic levels.

Benjamin Daniel Swinburne: <unk> for the company and then maybe on dynamic pricing it sounds like it was a tailwind for our Christmas spectacular revenue growth.

Benjamin Daniel Swinburne: Can you talk a little bit about how you guys go to market with that.

Benjamin Daniel Swinburne: Pricing product and if that's an opportunity in your concert business as well or if that's more of a ticketmaster.

Philip Gerard DAmbrosio: This fiscal year happens to be a year in which we are light in terms of deals coming up for renewal, and those renewals typically reset rates and drive additional growth. But that said, we've recently entered into a new relationship with Oakview Group, who are handling our sponsorship sales efforts, and we think having them wrap themselves is a good way to take our sponsorship level, our sponsorship business to a new level and grow the business in the future years. So while it's still early with OQ Group, we're excited about the opportunity of partnering together to drive additional sponsorship growth. Great, thank you both. Your next question comes from the line of Ben Swinburne from Morgan Stanley. Your line is open. Hey, good morning, Phil.

Speaker Change: Dynamic thank you.

All: Hey, Ben it's already all I'll start on your first question and then turn it over to Phil. So I guess just to start to step back I'd say, we're really pleased with how this year is unfolding. The business is clearly growing at a faster clip than we had initially anticipated and as you saw this morning, we've raised.

All: Our financial targets for the year.

All: That includes our expectation for pretty strong topline growth in the second half of the year. If you look at the midpoint of our revised revenue range, our guidance implies 13% year over year growth in revenues for the second half, but that said there are a couple of items, which we previously flagged to you all of that will impact.

Ari Danes: Good morning, Ari. I have two questions. I want to ask you guys about margin performance as you look out into the forecast, and then also, come back to your comment and the prepared remarks about the use of dynamic pricing. I think your new guidance suggests margins will be up something like 50 basis points year-on-year, maybe 40 basis points year-on-year versus pro forma 23. Can you talk a little bit about your opportunity to grow margins in the business as you look out over time, particularly if these top-line trends continue? Is that an objective for the company?

All: <unk> AOI and margins in the second half.

All: Bill do you want to take them through those moving parts. Please ari.

So.

Bill: If you recall Ben.

Bill: On our earnings call last August.

Bill: We noted that for fiscal 'twenty four we faced some substantial headwinds with regard to OE.

Ari Danes: And it was due to a number of factors.

Ari Danes: Our current estimate of those headwinds are a little over $18 million.

Ari Danes: About three quarters of that three year impacts the second half of fiscal 2004.

Ari Danes: And then maybe on dynamic pricing, it sounded like it was a tailwind for Christmas's spectacular revenue growth. Can you talk a little bit about how you guys go to market with that dynamic pricing product and if that's an opportunity in your concert business as well or if that's more of a Ticketmaster dynamic? Thank you. Hey Ben, it's Ari.

Ari Danes: And.

Ari Danes: To touch upon the.

Ari Danes: The two main items.

Ari Danes: Last March.

Ari Danes: We hosted the <unk> East regionals.

Ari Danes: At the garden and that is a very profitable very high margin, but nonrecurring event.

Ari Danes: Second.

Ari Danes: Back in August we also mentioned, our new corporate office lease hold here at two Penn.

Ari Danes: I'll start with your first question and then turn it over to Phil. So, I guess, just to start and just step back, I'd say we're really pleased with how this year is unfolding. The business is clearly growing at a faster clip than we had initially anticipated, and as you saw this morning, we've raised our financial targets for the year. That includes our expectation for, you know, pretty strong top-line growth in the second half of the year. If you look at the midpoint of our revised revenue range, our guidance implies 13% year-over-year growth in revenues for the second half. That said, there are a couple of items that we previously flagged to you all that will impact AOI and margins in the second half, and Bill. Do you want to take Ben through those moving parts? Please Ari. Hi Ben.

Ari Danes: That primarily took effect in December.

Ari Danes: But most of the impact will be seen and more pronounced in the back half of the fiscal year.

Ari Danes: So.

Ari Danes: If you just.

Ari Danes: Give some thought to the seasonality in.

Ari Danes: In our business and that Q3, and Q4 are seasonally smaller than Q2 in particular the impact of that rent increase is more pronounced.

Ari Danes: And I would like to add with regard to the new rate on the corporate leasehold.

Ari Danes: The accounting rules require us to straight line.

Ari Danes: Rent over the life of the lease hold.

Ari Danes: And that's notwithstanding the fact that our cash rent.

Ari Danes: We will not go up substantially for quite some time, but again those are the U S GAAP rules and Thats.

Ari Danes: Impacting NOI again noncash piece of NOI.

Ari Danes: So.

Philip Gerard DAmbrosio: So if you recall Ben on our earnings call last August, we noted that for fiscal 24, we faced some substantial headwinds with regard to AOI, and it was due to a number of factors. Our current estimate of those headwinds is a little over $18 million, but about three quarters of that figure impacts the second half of fiscal 24. And to touch upon the two main items.

Ari Danes: Notwithstanding those headwinds.

Ari Danes: When you look at our margins.

Ari Danes: As already mentioned.

Ari Danes: Given our new guidance they seem like they're relatively flat small growth, but if you factor in these two items were actually expanding our margins.

Ari Danes: And.

Ari Danes: As we think about our business on a go forward basis.

Ari Danes: We think there is plenty of growth ahead of us.

Ari Danes: Given our premium venues coupled with the Christmas spectacular so.

Ari Danes: In that regard.

Speaker Change: We see.

Philip Gerard DAmbrosio: Last March, we hosted the NCAA's East Regionals at the Garden, and that is a very profitable, very high-margin but non-recurring event. Seconds. Back in August, we also mentioned our new corporate office leasehold here at DuPont. That primarily took effect in December.

Speaker Change: Upside in bookings.

Speaker Change: And this involves not only increasing utilization.

Speaker Change: But also adding more events.

Speaker Change: We see the ability to drive.

Speaker Change: Okay.

Speaker Change: Higher ticket yield at the Christmas spectacular.

Speaker Change: And and we also see the sweet business, continuing to progress and grow as well as marketing partnerships or sponsorships and again, we think.

Philip Gerard DAmbrosio: But most of the impact will be seen and more pronounced in the back half of the fiscal year. So if you just give some thought to the seasonality of our business and that Q3 and Q4 are seasonally smaller than Q2, in particular, the impact of that rent increase is more pronounced. And I'd like to add with regard to. [inaudible] The accounting rules require us to straight line the rent over the life of the leasehold. [inaudible] will not go up substantially for quite some time. But, again, those are the US capitals.

Speaker Change: Our new arrangement with Oak view group is going to help us drive more growth.

Speaker Change: Coming back to the Christmas spectacular.

Speaker Change: Yes, we had a wonderful holiday run.

Speaker Change: That just concluded about a month ago.

Speaker Change: And.

Speaker Change: Notwithstanding we think there is more growth ahead of us for the production.

Speaker Change: Look it's a.

Speaker Change: It's a premium entertainment product.

Speaker Change: And if you compare.

Speaker Change: The the pricing.

Speaker Change: For the Christmas spectacular to comparable shows on Broadway during the holidays.

Speaker Change: There is room for us to increase ticket yield.

Philip Gerard DAmbrosio: And that is impacting AOI, again, a non-cash piece of AOI. So, bye. Notwithstanding those headwinds, when you when you look at our margins. As Ari mentioned, given our new guidance, they seem like they're relatively flat, with small growth. But if you factor in these two items, we're actually expanding our margin. As we think about our business on a going forward basis, we think there's plenty of growth ahead of us, given our premium venues, coupled with the Christmas Spectacular. So we see an upside in bookings, and this involves not only increasing utilization but also adding more events.

Speaker Change: We were very happy to see group sales return, we mentioned that 40% year over year increase.

Speaker Change: But at the same time, we were able to.

Speaker Change: Dynamically.

Speaker Change: Our tickets and and reduce.

Speaker Change: Discounts for individual tickets that is done by us by the way it's not ticketmaster.

Speaker Change: And.

Speaker Change: In light of this we see more opportunity and it's early yet.

Speaker Change: The holidays won't be here again to sort of get 11 months.

Speaker Change: But we think that we're going to drive incremental growth.

Speaker Change: With respect to ocular.

Speaker Change: Look it's a one of a kind iconic asset.

Philip Gerard DAmbrosio: We see the ability to drive higher ticket yield at the Christmas Spectacular, and we also see the suite business continuing to progress and grow, as well as marketing partnerships or sponsorships. And again, we think our new arrangement with Oakview Group is going to help us drive more growth. Coming back to the Christmas Spectacular, yes, we had a wonderful holiday run.

Speaker Change: Our plan is to nurture it and grow it.

Speaker Change: Thank you Phil.

Speaker Change: Thank you.

Speaker Change: Your next question comes from the line of David Karnofsky from Jpmorgan. Your line is open.

David Karnovsky: Alright, thanks for the question.

David Karnovsky: We've seen the announcements.

David Karnovsky: So Joel is planning to end his garden run.

Speaker Change: So this shows a unique in that.

Speaker Change: Keep promote them and therefore incur all the.

Speaker Change: Associated concert.

Speaker Change: Revenues and costs.

Philip Gerard DAmbrosio: I just concluded about a month ago and, notwithstanding, we think there's more growth ahead of us for the production. Look, it's a premium entertainment product. And if you compare the pricing for the Christmas Spectacular to comparable shows on Broadway during the holidays, there's room for us to increase ticket yields. [inaudible] We were very happy to see group sales return. We mentioned that 40% year over year increase. But at the same time, we were able to do so dynamically.

Speaker Change: So wanted to see if it was possible maybe to frame the financial impact for us about coming to an end in future fiscal years, and then separately maybe you could just discuss demand trends for shows that youre seeing right now across different venue types.

Speaker Change: Okay. Thanks, David.

Speaker Change: No.

Speaker Change: But first let me start by saying.

Speaker Change: It's been our privilege to partner with Billy Joel for 10 years.

Speaker Change: Many ways, it's hard to.

Speaker Change: I believe that he started in January of 2014.

Speaker Change: And.

Speaker Change: Billy Joel was certainly our first ever music franchise.

Philip Gerard DAmbrosio: Price, our tickets, and and reduce. Discounts for individual tickets. That is done by us, by the way. It's not Ticketmaster.

Speaker Change: Youre right that its.

Speaker Change: It's not like our typical bookings.

Speaker Change: Which our venue rentals or venue licenses.

Philip Gerard DAmbrosio: In light of this, we see more opportunity. And it's early yet. The holidays won't be here again for a good 11 months.

With regards ability, it's more of a co production or a co promotion.

Speaker Change: But I think.

Speaker Change: Some of the key takeaways.

Philip Gerard DAmbrosio: But but we think that we're going to drive incremental growth. The course is spectacular, look it's a one-of-a-kind iconic asset, and our plan is to nurture it and grow it. Thank you, Phil. Your next question comes from the line of David Karnovsky from J.P. Morgan. Your line is open.

Speaker Change: The Billy Joel residency was a great example of how we've been developing ways to increase our venue utilization.

And I can tell you that we're exploring the potential for other residencies at our venues.

Speaker Change: And we're in discussions with many artists.

Speaker Change: Quite frankly, we're seeing that the appetite for residencies from artist is growing.

Philip Gerard DAmbrosio: Thanks for the question. You know, we've seen the announcement that Bojo is planning to end his garden run, and the shows are unique in that, I think, you promote them and therefore incur all the associated concert revenue and costs. I wanted to see if it was possible maybe to frame the financial impact for us about coming to an end in future fiscal years, and then separately, maybe you could just discuss demand trends for shows that you're seeing right now across different venue types. Okay, David.

Speaker Change: <unk> as we've noted in prior discussions mean less travel and less wearing down on the artist so.

Speaker Change: It helps the artist and it helps us drive incremental growth.

Speaker Change: But with regard to Billy it's important to note that.

Speaker Change: As we replace.

Speaker Change: His residency.

Speaker Change: Now going to be exactly the same.

Speaker Change: Artists will want to put their own unique structure and spin on something like this but again we are discussing.

Speaker Change: Residencies with many artists, where we have strong relationships.

Speaker Change: And.

Philip Gerard DAmbrosio: So, first, let me start by saying that it's been our privilege to partner with Billy Joel for 10 years. In many ways, it's hard to believe that he started in January of 2014. Billy Joel was certainly our first ever music franchise.

Speaker Change: We look forward to.

Speaker Change: Those future residents fees.

Speaker Change: And just to mention again, what I already said earlier.

Speaker Change: Even though it's early if you look at the garden in terms of concerts.

Philip Gerard DAmbrosio: You're right that it's not like our typical bookings, which are venue rentals or venue licenses. With regard to Billy, it's more of a co-production or a co-promotion. But I think, some of the key takeaways.

Speaker Change: Pacing ahead for the first half of fiscal 'twenty five again, we're seeing a strong double digit increase for those first six months relative to this fiscal year 'twenty four and of course.

Philip Gerard DAmbrosio: The Billy Joel residency was a great example of how we've been developing ways to increase our venue utilization. And I can tell you that we're exploring the potential for other residencies at our venues, and we're in discussions with many artists. Quite frankly, we're seeing that the appetite for residencies from artists is growing. Residencies, as we've noted in prior discussions, mean less travel and less wearing down on the artist. So it has. It helps the artists, and it helps us drive incremental growth. But with regard to Billy, it's important to note that as we replace his residency, it's not going to be exactly the same. Artists will want to put their own unique structure and spin on something like this.

Speaker Change: That forward look on those six months includes multiple anticipated residents. He said the guardian.

Speaker Change: If I can turn now to your next question with regard to consumer demand and what's it looking like across our venues and Showtime.

Speaker Change: Okay.

Speaker Change: Let me begin by saying notwithstanding.

Speaker Change: <unk>.

Speaker Change: The current question that Thats been twisting and turning with regard to the economy.

Speaker Change: Whether or not we're going to have a recession or are we going to have a soft landing or something in between.

Speaker Change: We're not seeing any change in consumer demand.

Speaker Change: If anything as we've mentioned in our press release, given Jim's quote we continue to see strong demand for our live entertainment offerings.

Philip Gerard DAmbrosio: But again, we're discussing residencies with many artists where we have strong relationships, and we look forward to those future residencies. And just to mention again what Ari said earlier.

Speaker Change: And.

Speaker Change: This is across the arena and our four theaters and across our various event types.

Speaker Change: Led by concerts.

Philip Gerard DAmbrosio: Even though it's early, if you look at the garden in terms of concerts, pacing ahead for the first half of fiscal 25, again, we're seeing a strong double-digit increase for those first six months relative to fiscal year 24. And of course, that forward look for those six months includes multiple anticipated residencies in the garden. I can turn now to your next question with regard to consumer demand and what it's looking like across our venues and show types. Well, let me begin by saying now, withstanding the current question that's been twisting and turning with regard to the economy and whether or not we're going to have a recession or we're going to have a soft landing, something in between. We're not seeing any change in Consumer Demand.

Speaker Change: So with regard to the contracts in particular, our recent on sales continued to perform very well.

Speaker Change: In fact.

Speaker Change: Recently, we announced contracts for a number of artists.

Speaker Change: And the demand was so strong that we wound up adding additional shows. So this is happening now.

Speaker Change: But not something that just happened in the past again continued strong demand.

Speaker Change: We also have a number of sold out multi night runs across our various venues such as Olivia Rodrigo.

Speaker Change: <unk> and Amy Poehler and Matt right.

Speaker Change: In addition.

Speaker Change: The number of tickets sold for concerts in the second half of this fiscal year.

Speaker Change: January through June are up by a strong double digit double digit excuse me percentage increase year over year and this reflects a number of factors, including more events the timing of our sales and higher average sell through.

Philip Gerard DAmbrosio: If anything, as we've mentioned in our press release, given Jim's quote, we continue to see strong demand for our live entertainment. This is across the arena and our four theaters and across our various event types, led by concerts. So with regard to concerts in particular, our recent on sales continue to perform very well. In fact, recently, we announced concerts for a number of artists, and the demand was so strong that we wound up adding additional shows. So this is happening now. It's not something that just happened in the past.

Speaker Change: Turning to family shows this category has been very strong this year and you've heard us talk about the success.

Speaker Change: The Christmas spectacular run this past holiday season, but on top of that ticket sales for surface delays holiday show came in well above our expectations at both here at the theater at MSG and in Chicago at the Chicago Theater and.

Philip Gerard DAmbrosio: Again, there was continued strong demand. We also have a number of sold out multi-night runs across our various venues, such as Olivia Rodrigo, Tina Fey, Amy Poehler, and Matt Reif. Tradition, The number of tickets sold for concerts in the second half of this fiscal year, January through June, are up by a strong double digit double digit, excuse me, percent percentage increase year over year. And this reflects a number of factors, including more events, the timing of on sales, and higher average sell through. Turning to family shows, this category has been very strong this year, and you heard us talk about the success. The Christmas Spectacular run this past holiday season, but on top of that, ticket sales for Cirque du Soleil's holiday show came in well above our expectations at both here at the theater at MSG and in Chicago at the Chicago Theater. And finally, if you look at our per cap spending, food and beverage, and merchandise per caps, our concerts were up approximately 10% year over year this past second quarter. While per cap spending during the Christmas spectacular was also up a low double digit double digit percentage increase.

Speaker Change: And finally.

Speaker Change: If you look at our per cap spending food and beverage and merchandise per caps are contracts were up approximately 10% year over year. This past second quarter.

Speaker Change: While per cap spending during the Christmas spectacular was also up low double digits double digit percentage increase.

Speaker Change: So again, we're continuing to see strong demand in our venue spending from our guests.

Speaker Change: Your next question comes from the line of Brandon Ross from <unk> Partners. Your line is open.

Brandon Ross: Hey, Thanks very quickly in the quarter.

Brandon Ross: I guess you used your excess cash to pay down I think you said 90 million in debt.

Brandon Ross: Stock.

Brandon Ross: It was significantly lower than it is at this time.

Brandon Ross: What made you decide to pay down debt.

Brandon Ross: There instead of.

Brandon Ross: Buying back stock and.

Philip Gerard DAmbrosio: So again, we'll continue to see strong demand for our venue spending from our guests. Your next question comes from a line Brandon Ross from Light Shed Partners. Your line is open. Hey, thanks. Very quickly in the quarter.

Brandon Ross: When do you expect for us to see a return to buyback activity.

Speaker Change: Sure Brandon how are you.

Speaker Change: So.

Speaker Change: With regard to our capital allocation priorities.

Philip Gerard DAmbrosio: I guess you used your excess cash to pay down debt. I think you said 90 million in debt. Stock was significantly lower than it is at this time. What made you decide to pay down debt there instead of buying back stock? Shore. Brandon, how are you?

I remain unchanged, we have to as you just noted opportunistically, returning capital to our shareholders and paying down debt.

With regard to that.

Speaker Change: On our earnings call in November we had noted that.

Speaker Change: That it was our intention to fully pay down the revolver.

Philip Gerard DAmbrosio: So with regard to our capital allocation priorities. They remain unchanged. We have two, as you just noted, opportunistically returning capital to our shareholders and paying down debt. With regard to debt, on our call in November, we had noted that it was our intention to fully pay down the role of all of our debt, which was at $90 million. And again, we drew a significant amount on the revolver in September to fund the Sherry purchase we made at that time in September. So we're happy that we were able to deliver on that intention and pay down the revolver. It's obviously available to us in the future if we need it, but given where rates are, we wanted to eliminate that interest cost and then turn to our Shared Repurchase Program.

Speaker Change: Which was at $90 million and again.

Speaker Change: We drew a significant amount on the revolver in September to fund.

Speaker Change: Share repurchase we made at the time in September. So we're happy that we were able to deliver on that intention and pay down our revolver.

Speaker Change: It's obviously available to us in the future, if we need it, but but given where rates are.

We wanted to.

Speaker Change: Eliminate that interest cost.

Speaker Change: And then.

Speaker Change: Turning to our.

Speaker Change: Share repurchase program.

Speaker Change: Even though we we've acquired about $140 million of our stock since we spun off last April we still have $110 million of authorization.

Philip Gerard DAmbrosio: Even though we've acquired about 140 million of our stock since we spun off last April, we still have $110 million of authorization, and It's our intention to continue opportunistically returning capital to shareholders. If you look at these two priorities and how they will operate, With regard to debt, we simply plan to continue making the quarterly amortization payments on our Term Loan A. So that's just over $4 million per quarter.

Speaker Change: And it's our intention.

Speaker Change: To continue Opportunistically returning capital to shareholders.

Speaker Change: If you look at these two priorities and how they will operate.

Speaker Change: With regard to that we see.

Speaker Change: Simply plan to continue making the quarterly amortization payments on our term loan a.

Speaker Change: So that's just over $4 million per quarter.

Philip Gerard DAmbrosio: The balance will be directed toward the return of capital, and again, we intend to be opportunistic. [inaudible] with regard to leverage. We also want to point out that while we're not providing a specific leverage target, as our business grows, and we're certainly anticipating growth and AOI improvement in the future, our leverage will come down. So, in summary, we think we're very well positioned to execute on these two priorities for capital allocation. Thank you so much. Operator, we'll take one last caller. Your final question comes from the line of Logan Angress from Wolf Research.

Speaker Change: The balance will be directed toward return of capital and again, we intend to be opportunistic.

Speaker Change: Finally.

With regard to leverage we also want to point out that while we're not providing a specific leverage target.

Speaker Change: As our business grows and we're certainly anticipating growth in NOI improvement in the future our leverage will come down.

No.

Speaker Change: In summary, we think we're very well positioned to execute on these two priorities for capital allocation.

Speaker Change: Thank you so much.

Speaker Change: Operator, we'll take one last caller.

Speaker Change: Your final question comes from the line of Logan <unk> from Wolfe Research. Your line is open.

Philip Gerard DAmbrosio: Your line is open. Hi, thank you just quickly for garden utilization. We now have 100% visibility into the garden pipeline for this fiscal year. Please comment on how utilization is tracking versus prior years. Thank you for watching this video, and I'll see you in the next video.

Logan: Hi, Thank you just quickly on garden utilization.

Logan: You now have 100% visibility into the garden pipeline for this fiscal year can you comment on how utilization is tracking versus prior years and specifically <unk>.

Logan: <unk> said that the effective utilization was around 70% and I'm curious how realistic is it that at some point about reaches 100% or are there sort of roadblocks in the way of like artist maybe not wanting to perform during weekdays or other factors like that thank you.

Philip Gerard DAmbrosio: You last said that effective utilization was around 70%, and I'm curious, how realistic is it that at some point, that reaches 100%, or are there roadblocks in the way like artists maybe not wanting to perform during certain days, or other factors? [inaudible] So please let me start by saying again that the garden is on track to deliver solid bookings growth this fiscal year and I have already touched upon the outlook for the first six months of fiscal 25. If you look at this fiscal year 24. We're currently estimating around 230 total events at the garden or the arena, and this includes over 140 bookings events plus the Knicks and Rangers home games, on a base of 365 days a year and taking into account load in and load out days.

Speaker Change: Sure Logan.

Speaker Change: So please let me start by.

Speaker Change: By saying again that the garden is on track to.

Speaker Change: To deliver solid bookings growth this fiscal year and already touched upon the <unk>.

Speaker Change: Outlook for the first six months of fiscal 2005.

Speaker Change: If you look at this fiscal year 'twenty before we're currently estimating around 230 total events at the garden or the arena.

Speaker Change: And this includes over 140 bookings events.

Speaker Change: The Knicks and Rangers home games.

Speaker Change: On a base of 365 days, a year and taking into account load in and load out days.

Speaker Change: We estimate that venue utilization. This year is essentially the same as it was last year. So referencing the 70% that you mentioned.

Philip Gerard DAmbrosio: And that's despite the fact that we've increased events at the Garden. There are a number of items driving this, beginning with lower or fewer loading days. And another factor, again, is that we've been able to program more multiple event days than we have in the past. So that's an area that we're focused on, and it really helps drive business for the garden. And then, in terms of booking events during the weekdays, it's important to keep in mind that New York is a unique market, and The Garden is certainly a unique venue.

Speaker Change: That's despite the fact that we've increased events at the garden.

Speaker Change: There are a number of items driving this.

Speaker Change: Beginning with lower or fewer load in days.

Speaker Change: And another factor again is that we've been able to program.

Speaker Change: More multiple event days than we have than we've had in the past so that's on.

Speaker Change: An area that we're focused on and.

It really helps drive the business for the gardens.

Speaker Change: And then in terms of booking events during the weekdays.

Speaker Change: Important to keep in mind that New York is a unique market and the garden is certainly a unique venue.

Philip Gerard DAmbrosio: And we have a track record of shows selling out without regard again, without regard to the day of the week. We see that trend continuing, and we plan to expand upon it. That said, I would say the more challenging periods during the year that we see as opportunities are primarily the NBA and the NHL playoff windows for the Knicks and the Rangers. Those windows involve spring and can linger into the summer at a time when artists are more focused on playing outdoors.

Speaker Change: And we have a track record of show selling out without regard again without regard to the day of the week.

Speaker Change: We see that trend continuing and we plan to expand upon it.

Speaker Change: That said I would say the more challenging periods during the year that we see as opportunities.

Speaker Change: Primarily addressing the NBA and NHL playoff windows for the Knicks and Rangers.

Speaker Change: Those windows.

Implicate this spring and can linger into the summer.

Speaker Change: At a time when artists are more focused on playing outdoors, but but that said.

Speaker Change: We continue to work with our artists, where we have good relationships strong relationships.

Philip Gerard DAmbrosio: But that said, and they are willing to book dates during the playoff windows, subject to change, and this is going to help us drive additional utilization in the future. Finally, in the summer, we're continuing to have success by increasing the number of concerts. And again, this has to do with the garden and where it sits in the heart of Manhattan.

Speaker Change: And they are willing to book dates during the playoffs windows subject to change and and this is going to help us drive additional utilization.

Speaker Change: In the future.

Speaker Change: Finally.

Speaker Change: In the summer.

Speaker Change: We're continuing to have to have success by increasing the number of concerts and again this has to do with the garden and where it sits in the heart of Manhattan. So.

Philip Gerard DAmbrosio: So, we see that trend continuing. We plan to expand upon it to increase our utilization. So, with the garden being our largest venue, we really believe that utilization increases are important, and we're confident in our ability to continue to grow. This growth, again, led by the garden.

Speaker Change: We see that trend continuing.

We plan to expand upon it to increase our utilization.

Speaker Change: So with the garden being our largest venue.

Speaker Change: We really believe that and utilization increases.

Speaker Change: Are important and we're confident in our ability to continue to grow.

Speaker Change: This utilization.

Speaker Change: Again led by the garden.

Great. Thank you.

Speaker Change: Thank you.

Speaker Change: This concludes our question and answer session I will now turn the call back over to Mr. Ari Danes for some closing remarks.

Operator: Thank you. [inaudible] Thank you all for joining us. We look forward to speaking with you on our next earnings call. Have a good day. This concludes today's conference call. Thank you for your participation. You may now disconnect.

Ari Danes: Thank you all for joining US we look forward to speaking with you on our next earnings call have a good day.

This concludes today's conference call. Thank you for your participation you may now disconnect.

Ari Danes: [music].

Ari Danes: Yes.

Ari Danes: [music].