Q3 2024 Madison Square Garden Entertainment Corp Earnings Call

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

Good morning, Thank you for standing by and welcome to the Madison Square Garden Entertainment version is called 2024 third quarter earnings Conference call.

Ari Danes: At this time all participants are in a listen only mode.

Ari Danes: After the Speakers' remarks, there'll be a question and answer session.

Operator: I would now like to turn the call over to Ari Danes Senior Vice President Investor Relations.

Speaker Change: I'm sorry.

Ari Danes: Please go ahead.

Ari Danes: Thank you.

Ari Danes: Good morning and welcome to MSG Entertainment's Fiscal 2024 3rd Quarter Earnings Conference Call. On today's call, Mike Graw, our EVP and Chief Financial Officer, will provide an update on the company's operations and review our financial results for the quarter. After our prepared remarks, we will open up the call for questions. During Q&A, we will also be joined by Phil D'Ambrosio, our EVP and Treasure

Ari Danes: Morning, and welcome to MSG Entertainments fiscal 2024 third quarter earnings Conference call.

Ari Danes: On todays call might draw, our EVP and Chief Financial Officer will provide an update on the company's operations and review our financial results for the quarter.

Philip Gerard DAmbrosio: After our prepared remarks, we will open up the call for questions. During Q&A. We will also be joined by Phil Dambrosio, our EVP and treasurer.

Ari Danes: If you do not have a copy of today's earnings release, it is available in the investor section of our corporate website. Please take note of the following. Today's discussion may contain forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995. However, 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.

Ari Danes: 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.

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

Ari Danes: 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.

Ari Danes: 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 five and six 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 Mike.

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

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

Mike: On pages five and six of today's earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income or non.

Ari Danes: non-GAAP financial measure and with that I'll now turn the call over to Mike. Thank.

Mike Graw: Thank you, Ari, and good morning, everyone. I'd like to start the call by saying how pleased I am to be joining you today. MSG Entertainment has a really strong portfolio of assets and a great team, and I feel privileged and excited to be working with everyone to ensure the company delivers on our key business objectives. I'm certainly very grateful for the opportunity and also very optimistic about our future prospects. Along those lines, we have less than two months left in our first full year as a standalone public company, and thanks to our strong results, we remain on track to deliver robust growth for fiscal 2024.

Mike: Thank you Ari and good morning, everyone.

Mike Graw: I'd like to start the call by saying how pleased I am to be joining you today MSG Entertainment has a really strong portfolio of assets and a great team.

Mike Graw: Feel privileged and excited to be working with everyone to ensure the company delivers on our key business objectives.

Mike Graw: Certainly very grateful for the opportunity and also very optimistic about our future prospects.

Mike Graw: Along those lines there are less than two months left in our first full year as a standalone public company and thanks to our strong results we remain on track to deliver robust growth for fiscal 2024.

Mike Graw: In fact, the strong operating performance that led us to increase our full-year revenue and AOI guidance in February has continued, and we are now updating our financial forecast for fiscal 24, including an increase to our expected AOI range for the year, which I will discuss in more detail shortly. Two main areas are driving this financial performance. First, the Christmas Spectacular's 90th holiday season run, which ended in January, delivered yet another year of record-setting revenues for the production.

Mike Graw: In fact, the strong operating performance that led us to increase our full year revenue and NOI guidance in February has continued.

Mike Graw: We are now updating our financial forecast for fiscal 'twenty, four including an increase to our expected NOI range for the year, which I will discuss in more detail shortly.

Mike Graw: Two main areas of driving this financial performance.

Mike Graw: First the Christmas spectacular 90th holiday season run, which ended in January delivered yet another year of record setting revenues for the production.

Mike Graw: And second, our booking business has continued to grow and remains set to achieve a low double-digit percentage increase in events for fiscal 24. This includes concert growth across all of our venues, with the Garden and Radio City both headed towards setting new records for the number of concerts in a year. The strength of our financial results has enabled us to repurchase a substantial amount of our Class A shares for this month. And as we look ahead, we remain confident that our business is positioned to continue generating long-term value for our shareholders.

Mike Graw: And second our booking business has continued to grow and remain set to achieve a low double digit percentage increase in events for fiscal 'twenty four.

Mike Graw: This includes contract growth across all of our venues with the Garden Radio city, both headed towards setting New records for number of concerts in a year.

Mike Graw: The strength of our financial results has enabled us to repurchase a substantial amount of our class a shares for this fiscal year.

Mike Graw: And as we look ahead, we remain confident that our business is positioned to continue generating long term value for our shareholders.

Mike Graw: Let's now review some third quarter operational highlights. During the quarter, our portfolio of venues hosted more than 1.5 million guests at over 200 live events. A majority of these events were driven by our bookings and delivered a double-digit percent increase in total concerts versus the prior year quarter. The key contributor to this increase was a strong multi-night comedy schedule. This included 55 nights across Radio City, The Beacon, and the Chicago Theatre from such acts as John Oliver and Seth Meyers, Tina Fey, and Amy Poehler. Jerry Seinfeld and Ali Wong, among others.

Mike Graw: Let's now review some third quarter operational highlights during.

Mike Graw: During the quarter, our portfolio of venues hosted more than $1 5 million guests at over 200 live events.

Mike Graw: A majority of these events were driven by our bookings business, which delivered a double digit percentage increase in total concerts versus the prior year quarter.

Mike Graw: The key contributor to this increase was a strong multi night comedy schedule. This.

Mike Graw: This included a combined 55 nights across radio city, the Beacon and the Chicago Theater from such access John Oliver and Seth Meyers, Tina Fey and Amy Poehler.

Mike Graw: Jerry Seinfeld and Ali one among others.

Mike Graw: And as the volume of events at our venues continues to increase, we are pleased to see it matched by strong demand. For the third quarter, the majority of concerts at our venues were once again sold out. Sales of single-night suites increased significantly, and Poor Cap's spending at concerts on food, beverage, and merchandise again increased on a year-over-year basis. Also, during the third quarter, the Nixon Rangers continued their 2023-24 regular season at the Garden.

Mike Graw: And as the volume of events at our venues continues to increase we are pleased to see it matched by strong demand for.

Mike Graw: For the third quarter, the majority of concerts at our venues where once again sold out.

Mike Graw: Sales of single night suites increased significantly.

Mike Graw: And per cap spending at concerts on food beverage and merchandise again increased on a year over year basis.

Mike Graw: Also during the third quarter, the Knicks and Rangers continued through $2023 24 regular seasons at the garden.

Mike Graw: This included five more Nick Holm games in the current year as compared to the prior year quarter. In addition to these extra matchups, Knicks and Rangers games followed the same trend we saw in our other live events, with increases in average per game revenues for food, beverage, and merchandise. We also saw continued demand for our premium hospitality. As we have previously discussed, The Garden introduced two new suite products this fiscal year, an event-level suite and a luxury event-level club suite.

Mike Graw: This included five more Nick home games in the current year as compared to the prior year quarter.

Mike Graw: In addition to these extra match ups Knicks and Rangers games, followed the same trend we saw in our other live events with increases in average per game revenues for food beverage and merchandise sales.

Mike Graw: We also saw continued demand for our premium hospitality offerings.

Mike Graw: As we have previously discussed the garden introduced two new suite products this fiscal year and event level suite and our luxury event level club space.

Mike Graw: We have already noted that we secured a multi-year agreement for the event-level suite earlier this year. And to add to that, we are now close to selling out the event-level club space and have started adding more seats to help match the interest that we are seeing for this premium hospitality project. Before we talk about our financial results, a couple points regarding presentation and comparability. First, I'd like to note that we have revised our definition of adjusted operating income as it relates to the arena license fees with MSG Sport.

Mike Graw: We already noted that we secured a multiyear agreement for the event level suite earlier this year.

Mike Graw: And to add to that we announced close to selling out the event level club space and have started adding more seats to help match. The interest that we are seeing for this premium hospitality products.

Mike Graw: We are no longer removing the non-cash portion of the ARENA license fees in our reconciliation of operating income to adjusted operating income, which is reflected in the financial results we reported today for all periods presented as well as in our financial guide. You may recall that the arena license fees are recognized on a straight line basis over the life of the 35-year agreements, which equates to approximately 68 million dollars a year.

Mike Graw: Before we talk about our financial results a couple of points regarding presentation and comparability.

Mike Graw: First I'd like to note that we have revised our definition of adjusted operating income as it relates to the arena license fees with MSG sports.

Mike Graw: We are no longer removing the noncash portion of the arena license fees and a reconciliation of operating income to adjusted operating income, which is reflected in our financial results. We reported today for all periods presented as well as in our financial guidance.

Mike Graw: You may recall that the arena license fees are recognized on a straight line basis over the life of the 35 year agreements, which equates to approximately $68 million a year.

Mike Graw: For fiscal 2024, this $68 million will be comprised of approximately $43 million of cash revenue and $25 million of non-cash revenue. We will continue to disclose the non-cash component of the arena license fees on a quarterly basis. And secondly, because the company completed its spinoff from Sphere Entertainment in April of last year, our fiscal third 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 stand-alone public company. Turning now to our financial results.

Mike Graw: For fiscal 2000 $24 million to $68 million will be comprised of approximately $43 million of cash revenue at $25 million of noncash revenue.

Mike Graw: We will continue to disclose the noncash component of the arena license fees on a quarterly basis.

Mike Graw: And secondly, because the company completed its spin off from sphere Entertainment in April of last year, our fiscal third quarter results are not fully comparable on a year over year basis.

Mike Graw: Results for the prior year quarter 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.

Mike Graw: For the fiscal 2024 third quarter, we reported revenues of approximately $228 million, an increase of 13% as compared to the prior year period. This reflected growth across our three revenue categories. Entertainment Offerings, Food, Beverage, and Merchandise, and Arena License. Revenues from entertainment offerings increased, primarily due to higher revenues from concerts and suite license fees, partially offset by the absence of the NCAA East Regional Tournament, which took place at the Garden in the prior year quarter.

Mike Graw: Turning now to our financial results.

Mike Graw: For the fiscal 2020 for third quarter, we reported revenues of approximately $228 million, an increase of 13% as compared to the prior year period.

Mike Graw: This reflected growth across our three revenue categories entertainment offerings food beverage and merchandise.

Mike Graw: [noise] arena license fees.

Mike Graw: Revenues from entertainment offerings increased primarily due to higher revenues from contracts and suite license fees.

Mike Graw: Offset by the absence of the NCAA East Regional tournament, which took place at the garden and the prior year quarter.

Mike Graw: Higher food and beverage revenues were primarily due to an increase in the number of concerts held at our venue, as well as the impact of five more Knicks games at the Garden during the quarter. This was partially offset by lower per concert food and beverage revenue, which reflects a mixed shift to more concerts at our theaters during the current year. The increase in arena license fees reflects the impact of five additional NIC games in the quarter as compared to the prior year period.

Mike Graw: Higher food and beverage revenues were primarily due to an increase in the number of concerts held at our venues as well as the impact of five more Nick games at the garden during the quarter.

Mike Graw: This was partially offset by lower pork concert food and beverage revenues, which reflects a mix shift to more concerts at our theaters during the current year quarter.

Mike Graw: Okay.

Mike Graw: And the increase in arena license fees reflects the impact of five additional knick games in the quarter as compared to the prior year period.

Mike Graw: Third quarter adjusted operating income of $38.5 million decreased by $11.6 million as compared to the prior quarter. These AOI results include $13.2 million of non-cash arena license fees in the current year quarter, as compared to $12.1 million in the prior year period. The decrease in AOI primarily reflects higher SG&A expenses, and as I mentioned earlier, third quarter SG&A expenses are not fully comparable on a year-over-year

Mike Graw: Third quarter adjusted operating income of $38 5 million decreased by $11 6 million as compared to the prior quarter.

Mike Graw: These results include $13 2 million of noncash arena license fees in the current year quarter as appeared to $12 1 million in the prior year period.

Mike Graw: The decrease in NOI, primarily reflects higher SG&A expenses and as I mentioned earlier third quarter SG&A expenses are not fully comparable on a year over year basis.

Mike Graw: Moving on to our fiscal 24 out, Given the positive momentum in our business, we are updating our guidance for fiscal 24. We now expect revenues of between $940 and $950 million, versus our prior range of between $930 and $950 million. The midpoint of this updated range reflects 11% revenue growth versus fiscal 2023. We also expect operating income for the year of between $100 and $110 million versus $95 to $105 million previously.

Mike Graw: Moving onto our fiscal 'twenty four outlook.

Mike Graw: Given the positive momentum in our business, we are updating our guidance for fiscal 'twenty four.

Mike Graw: We now expect revenues of between $940 and $950 million versus our prior range of between 930 and $950 million.

Mike Graw: The midpoint of this updated range reflects 11% revenue growth versus fiscal 2023.

Mike Graw: We also expect operating income for the year of between 101 hundred $10 million versus $95 million to $105 million previously.

Mike Graw: An adjusted operating income is now expected to be between $200 and $210 million. This compares to our previous range of $195 to $205 million, with both prior and updated guidance having been adjusted to no longer remove the $25 million non-cash portion of the ARENA license. Turning to our balance,

Mike Graw: And adjusted operating income is now expected to be between 200 and $210 million.

Mike Graw: This compares to our previous range of $195 million to $205 million with both prior and updated guidance, having been adjusted to no longer to move to $25 million non cash portion of the arena license fees.

Mike Graw: To our balance sheet.

Ari Danes: As of March 31st, we had approximately $28 million of unrestricted cash. In addition, our debt balance was approximately $630 million, consisting of a single-term loan facility with mandatory quarterly principal repayments of approximately $4 million per quarter. Looking ahead, we remain focused on our dual capital allocation priorities of opportunistically returning capital to shareholders and paying down debt. As a reminder, since our spinoff last year, we have repurchased approximately $140 million, for about 10% of our outstanding Class A shares.

Mike Graw: As of March 31, we had approximately $28 million of unrestricted cash.

Ari Danes: In addition, our debt balance was approximately $630 million consisting of a single term loan facility with mandatory quarterly principal repayments of approximately $4 million per quarter.

Ari Danes: Looking ahead, we remain focused on our dual capital allocation priorities of Opportunistically, returning capital to shareholders and paying down debt.

Ari Danes: As a reminder, since our spinoff last year, we have repurchased approximately $140 million or about 10% of our outstanding class a shares.

Ari Danes: We continue to have $110 million remaining under our current buyback authorization. In addition, subsequent to quarter end and through the end of April, we sold approximately 1.6 million shares of Town Square Media for net proceeds of approximately $15.6 million. As we continue to build our cash balance back up following our share repurchase and debt pay-down activity earlier this fiscal year, in summary, we had another quarter that reflected the strength of our assets and robust demand for our business.

Ari Danes: We continue to have $110 million remaining under our current buyback authorization.

Ari Danes: In addition, subsequent to quarter end and through the end of April we sold approximately one 6 million shares in town square media for net proceeds of approximately $15 6 million as we continue to build our cash balance back up following our share repurchase and debt paydown activity earlier this fiscal year.

Ari Danes: In summary, we had another quarter that reflected the strength of our assets and robust demand for our business.

Ari Danes: And as we near the end of our first full year as a stand-alone company, we are continuing to offer consumers unforgettable experiences while delivering attractive growth for Fiscal 25. With that, I will now turn the call back over to Ari.

Ari Danes: And as we near the end of our first full year as a Standalone company we.

Ari Danes: We're continuing to offer consumers unforgettable experiences, while delivering attractive growth for fiscal 'twenty four.

Ari Danes: With that I will now turn the call back over to Ari.

Operator: Thank you, Mike. Operator, can we open up the call for questions?

Ari Danes: Thank you Mike operator can we open up the call for questions.

Operator: Okay.

Operator: We will now begin the question and answer session. In order to ask a question, press star and the number one on your telephone keypad. Your first question comes from the line of Stephen Laszczyk with Goldman Sachs. Please go ahead.

Speaker Change: We will now begin the question and answer session.

Operator: In order to ask a question press Star then the number one on your telephone keypad.

Stephen Neild Laszczyk: Your first question comes from the line of Steve.

Stephen Neild Laszczyk: Stephen <unk> with Goldman Sachs.

Stephen Neild Laszczyk: Please go ahead.

Mike Graw: Hey, great. Thanks for taking the time to answer the question. Just to clarify on the AOI guidance: is it correct for us to be interpreting a revision on a like for like basis on your prior way of reporting as a move from 170 to 180 to 175 to 185? So that would be a $5 million revision higher at the midpoint. And then fundamentally, just thinking ahead to Christmas Spectacular, it sounds like demand for live entertainment remains strong. I would be curious for your updated thoughts on the opportunity to increase show count versus the opportunity to increase price or sell through both this year and beyond for that property.

Stephen Neild Laszczyk: Hey, great. Thanks for taking the questions just to clarify on DIY guidance is it correct for us to be interpreting a revision on a like for like basis on your prior way of reporting as a move from 170 to 180 to $1 75 to 185, so that would be a $5 million revision higher at the midpoint.

Mike Graw: And then fundamentally just thinking ahead on Christmas spectacular it sounds like demand for live entertainment remains strong.

Mike Graw: Curious.

Mike Graw: For your updated thoughts on the opportunity to increase show Cowen versus the opportunity to increase price yourself through those.

Mike Graw: Both this year and beyond for that property.

Mike Graw: Okay.

Mike Graw: Thank you, Steve. Thank you for the questions. Before I answer, I just want to quickly apologize to the audience. I know we had some technical glitches at the beginning of the call that forced us to start probably 15 minutes later than scheduled. So we certainly apologize for any inconvenience, and we'll get that ironed out going forward.

Speaker Change: Thank you Steve. Thank you for the questions before I before I answer I just wanted to quickly apologize to the audience I know we had some technical glitches at the top of the call that forced us to stop probably 15 minutes later than scheduled so we certainly apologize for any inconvenience and we'll get that ironed out going forward.

Mike Graw: So on AOI guidance, your interpretation is absolutely correct. We've redefined AOI. We no longer make an adjustment for the non-cash portion of arena license fees, which for this year is about $25 million. So you're right. You take the previous guidance, which was $170 to $180. You bump it up by $5 million. It's $175 to $185.

Mike Graw: A few questions. So on AOA AOR guidance. Your interpretation is absolutely correct. We've redefined ally, we no longer make an adjustment for the noncash portion of arena license fees, which for this year is about $25 million.

Mike Graw: So you're right you take the the.

Mike Graw: Previous guidance was $1 70 to 180, you bumped it up by $5 million is $1 75 to 185, that's what's happening on apples to apples basis, and then you add $25 million of the upper and lower bounds to get to the guidance, we discussed which was.

Mike Graw: The 200 to two Chad.

Mike Graw: That's what's happening on an apples-to-apples basis. I see a second question on the Christmas show; we see a lot of runway action on both fronts. In terms of number of shows, to reiterate the calendar 23 season show, we went out with 185 shows, and based on demand, we did add 8 shows, so we did 193 shows. For the upcoming show, it's about six months away.

Mike Graw: As to your second question on the Christmas show, we see a lot of runway actually on both fronts in terms of number of shows to reiterate the calendar 'twenty three season show. We went out with 185 shows on based on demand. We did add eight shows and so we did 193 shows.

Mike Graw: For the upcoming show it's about six months away. We have released 197 shows for sales and we do have the ability to add additional shows around the edges.

Mike Graw: We have released 197 shows for sale, and we do have the ability to add additional shows around the edges to the extent that's justified by demand. I'll also mention that, right now, the advanced sales pacing is pretty encouraging. Right now, our sales of Christmas show tickets versus the same time last year are up about 35% in terms of gross revenue, so that encompasses both volume and price. It's a relatively small sample size because we're not actively promoting or marketing the show yet. Nevertheless, it is kind of an encouraging trend.

Mike Graw: It's justified by demand also mentioned right now the advanced sales pacing is pretty encouraging right now our sales of Christmas show tickets versus the same time last year, we're up about 35% in terms of gross revenue. So that encompasses both volume and price. It's a relatively small sample size because we're not actively promoting our marketing the show yet.

Mike Graw: Nonetheless kind of an encouraging trend and so that's where we stand in terms of number of shows.

Mike Graw: And so that's where we stand in terms of the number of shows. In terms of ticket pricing and sell-through, I mean, that's almost a 2A and 2B, right? Two different dynamics.

Mike Graw: Terms of ticket pricing and sell through I mean, that's almost a two <unk> two different dynamics in terms of sell through we did about a 90% sell through for the Christmas show season. Just ended that was up from mid eighties. The year. Prior we have in the past done as many as five percentage points or more higher than even the 90% that we just realized this past season. So we certainly think there is.

Mike Graw: In terms of sell-through, we did about a 90% sell-through for the Christmas show season just ended. That was up from the mid-'80s the year prior. We have, in the past, done as many as five percentage points or more higher than even the 90% that we just realized this past season.

Mike Graw: So we certainly think there's room there for additional growth and profitability. Ticket yield tends to grow every year. That's sort of the nature of that thing. And 23 was our highest ticket yield ever. Having said that, still a pretty healthy discount to what a comparable Broadway show might cost in the same time horizon. So that, coupled with the success we've had with dynamic pricing, leads us to believe, or to be very optimistic about additional runway on ticket yield as well. So we think we can grow the Christmas Spectacular on all of the fronts you mentioned, including the number of shows, ticket pricing, and sales.

Mike Graw: One way to ask for additional growth and profitability.

Mike Graw: It yields ticket yield tends to grow every year, that's sort of the nature of that thing.

Mike Graw: <unk> three was our highest ticket yield ever having said that print is still a pretty healthy discount to what a comparable Broadway show my costs and at the same time horizon, so that coupled with the <unk>.

Mike Graw: Success, we've had with dynamic pricing leads us to believe it to be very optimistic about additional runway that ticket yield as well. So we think we can grow the Christmas spectacular all other fronts, you mentioned number of shows ticket pricing and sell through.

Mike Graw: Got it, thanks for all that. And then maybe one more on margin. In the past, I think you've called out some one-time margin headwinds you're facing this year. As we move past your fiscal 24 and some of these come off, I'm curious how you're thinking about the opportunity for margin expansion and maybe some of the drivers in 25 and beyond. Sure. So in 20.

Speaker Change: Got it thanks for all that and then maybe one more if I could on margin in the past I think you've called out some one time margin headwinds you're facing this year as we move past your fiscal 'twenty four and some of these come off I'm curious, how you're thinking about the opportunity for margin expansion and maybe some of the drivers in 'twenty five and beyond.

Mike Graw: Sure. So in 24, as we discussed, we're on track to deliver very robust growth. In terms of revenues, but also as well as some margin expenses. I'm going to steer away largely on this call from getting very specific as to fiscal year 25. We're still very much in the early innings of our budget process, and that's something we'd be more likely to address in more detail on our year-end earnings call, which will be somewhere in the neighborhood of early August.

Mike Graw: Sure. So in 'twenty four as we discussed we're on track to deliver very robust growth in terms of revenues, but as well as some margin expansion.

Mike Graw: I'm going to steer away largely on this call from Kevin.

Mike Graw: Specific as to fiscal year 'twenty five we're still very much in the early innings of our budget process and that's something we'd be more likely to address in more detail on our year end earnings call, which will be somewhere in the neighborhood of early August.

Mike Graw: But taking a step back and looking at this over the longer term, we see margin opportunities in a lot of areas in our business. On the booking side, we still think we have an opportunity to increase venue utilization. We've had a lot of success in 24 in growing per event profitability and have reason to believe we can sustain that trend through 25 and beyond. In terms of the Christmas show, we just talked about it, but I would highlight the sell-through and the ticket price yield have really dropped straight down to the bottom line.

Mike Graw: Taking a step back and looking at this over the longer term, we see margin opportunities a lot of areas of our business on the booking side. We see we still think we have opportunity to increase menu utilization. We've had a lot of success in 'twenty four and growing per event profitability and have reason to believe we can sustain that trend through 'twenty five and beyond.

Mike Graw: The Christmas show, we just talked about it but I would highlight the sell through in the ticket price yield is really drops straight down to the margin to the bottom line. So that's very margin accretive to the extent we can.

Mike Graw: Progress on those fronts, and then some of our ancillary but very meaningful revenue streams sponsorship and signage.

Mike Graw: So that's very margin-accretive to the extent we make progress on those fronts. And then some of our ancillary but very meaningful revenue streams, sponsorship, and signage, and premium suites, are very high-margin revenue streams. And again, there is runway for growth in both of these. In terms of sponsorship, we're entering a year in fiscal 25 and beyond where we'll see more renewal activity. Fiscal 24 was relatively quiet in that regard.

Mike Graw: Premium suites, very high margin revenue streams and again runway for growth in both of these in terms of sponsorship we're entering a year in fiscal 'twenty five.

Mike Graw: And at renewals, we often have opportunities to price up the sponsorship deals or, better yet, even upsize them. We also have the OVG relationship, and we're really starting to gain some traction there. And we really have some really nice, unique assets that we can add to that inventory as well. So there are all sorts of reasons to believe we can grow sponsorship and signage revenues going forward, which is very margin-accretive. And likewise, on the premium front, we talked in some of our scripted comments about the success we've had in adding new suites and club space in 24.

Mike Graw: And we will see more and renewal activity fiscal 'twenty four it was relatively quiet in that regard and that renewals, we often have opportunities to price up the sponsorship deals or better yet even upsize them. We also have the <unk> relationship, which we are really starting to gain some traction there and we really have some really nice unique assets that we can add to that inventory as well so.

Mike Graw: All sorts of reasons to believe we can grow sponsorship revenue sponsorship and signage revenues going forward, which is very margin accretive.

Mike Graw: On the premium front, we saw Samsung scripted comments about the success, we've had in adding new suites and clubs space in 'twenty, four and we think additional opportunities exist on that front as well.

Mike Graw: And we think additional opportunities exist on that front as well. The last point I would mention would be on the expense side. We think our infrastructure is such that we can scale the business and get a lot of operating leverage. We don't think we necessarily need to add a lot of OPEX in order to support some of these growth initiatives that we're talking about. So we see a lot of opportunity over the long haul for margin expansion.

Mike Graw: The last point I would mention would be on the expense side. We think our infrastructure is such that we can scale. The business again, a lot of operating leverage we don't think we necessarily need to add a lot of opex in order to support some of these growth initiatives that we're talking about so we see a lot of opportunity over the long haul for margin expansion.

Speaker Change: Great. Thank you for that.

Mike Graw: Okay.

Operator: Your next question comes from the line of Daniel Duran with Morgan Stanley. Please go ahead.

Mike Graw: Your next question comes from the line of Daniel Moran.

Daniel Duran: With Morgan Stanley.

Daniel Duran: Go ahead.

Mike Graw: Good morning. Thank you for taking the time to answer the question. You mentioned that your booking business has grown low double digits in fiscal 24, and I wanted to know if at this point you had any sense of what that would look like for fiscal year 25. And on top of that, if you have seen any softening of per capita or consumer spending, as we've seen in other larger consumer businesses like McDonald's or Starbucks, thank you.

Daniel Duran: Good morning, Thank you for taking the question.

Mike Graw: You mentioned that Youre bookings business has grown low double digits in fiscal 'twenty four and I wanted to know if at this point you had any sense of why that wouldn't look like for fiscal year 'twenty five.

Mike Graw: On top of that if you have seen any softening of per caps or consumer spending as we've seen in other larger consumer businesses like Mcdonald's or Starbucks. Thank you.

Mike Graw: Thank you, Daniel, for the questions. I appreciate it.

Speaker Change: Thank you David for the questions I appreciate it.

Speaker Change: Terms of bookings I think you have to look at that really in two parts I think the arena in the theaters are slightly different animals in that regard with the arena, we've talked historically and still do.

Speaker Change: The booking window tends to be about six to nine months out.

Mike Graw: Um, in terms of bookings, I think you have to look at that really in two parts. I think the arena and the theaters are slightly different animals in that regard. With the arena, we've talked about historically and so well, so the booking window tends to be about six to nine months out. So, we do have enhanced visibility there.

Speaker Change: So we do have enhanced visibility there.

Mike Graw: As we look at fiscal 25 and the kind of number of shows we have booked now versus the same point a year ago for fiscal 24, I would say we're up mid-single digits for the full year 25. And if I were to look at just the first half of 25, probably up more like low double digits in terms of the number of events. So I am pretty encouraged by the current trends in terms of bookings on the arena. On the theatres, the booking window is a little shorter, three to six months, so the pipeline is a little less developed, and the visibility is not as good.

Mike Graw: As we look at fiscal 'twenty, five and the kind of number of shows we have book now versus the same point a year ago for fiscal 'twenty four I would say, we're up mid single digits for the full year 'twenty five and if I were to look at just the first half of 'twenty five probably up more like low double digits in terms of number of events. So pretty encouraged by the current trends in terms of bookings on the arena.

Mike Graw: On the theaters the booking window is a little short of three to six months. So the pipeline's a little less developed than the visibility is not as good. Nevertheless, if we look at it the same way we are up high single digits versus the prior year in terms of events booked at the theaters at this point in time. So look we're coming off what will be a record year in fiscal 'twenty four in many respects as to will that volume.

Mike Graw: Nevertheless, if we look at it the same way, we are up high single digits versus the prior year in terms of events booked at the theaters at this point in time. So, you know, look, we're coming off what will be a record year in Fiscal 24 in many respects as to event volume. We're still pacing very nicely versus that record. In regard to your second question, in terms of softening consumer spending and demand, as you referenced McDonald's and Starbucks, we're not really seeing that. We see that on a couple of different data points that would support that.

Mike Graw: We're still pacing very nicely versus that record year.

Mike Graw: In regards to your second question in terms of softening of consumer spending and demand and you referenced Mcdonald's or Starbucks, we're not really seeing that.

Mike Graw: We see that a couple of different data points. So it's more than most of our shows continue to sell out.

Mike Graw: Most of our shows continue to sell out. For our fourth quarter shows, we're pacing ahead of the prior year in terms of our sell-through percentages versus where we were again at the same point last year. We still have a lot of acts that are selling that are adding additional shows because of demand. So in terms of events and tickets, demand is very healthy, which supports, just you know, what we're seeing in the live experience sector in general, both here and amongst our peers.

Mike Graw: For our fourth quarter shows we're pacing ahead of the prior year in terms of our sell through percentages versus where we were again same point last year. We still have a lot of acts that are selling that or adding additional shows because of demand.

Mike Graw: In terms of events and tickets the demand is very healthy which supports just what we're seeing in the live experience sector in general Bob here and amongst our peers.

Mike Graw: In terms of the per-cap spending on food and beverage and merchandise, we are up low single digits versus the prior year for concerts. That's actually most notable at the Arena, which is where the biggest opportunity is. The per-cap spending at the Arena outpaces the theaters for a variety of reasons, and we're seeing even more robust growth there. So we're not really seeing a softening demand. I would speculate that, you know, we enjoy certain tailwinds that I think maybe McDonald's and Starbucks don't, in terms of, again, kind of the burgeoning popularity of live experiences and the continued return of New York City tourism from the pandemic. So by virtue of that, we are not seeing that kind of softening of demand. I got it.

Mike Graw: In terms of the per cap spending on food and beverage and merchandise we are up low single digits versus the prior year for concerts, that's actually most notably the arena, which is where the biggest opportunity is the <unk>.

Mike Graw: Got it. Thank you very much.

Mike Graw: Spending at the arena outpaces the theaters for variety of reasons are we're seeing even more robust growth. There. So we're not really seeing a softening demand I would speculate.

Mike Graw: We enjoy certain tailwind, but I think maybe Mcdonald's and Starbucks <unk> in terms of again, the kind of the burgeoning popularity of live experiences and we continued return of New York City tourism from the pandemic. So by virtue of that we are not seeing that kind of softening of demand.

Mike Graw: Got it thank you very much.

Mike Graw: Okay.

Operator: Your next question comes from the line of Peter Henderson with Bank of America. Please go ahead.

Mike Graw: Your next question comes from the line of Peter Henderson with Bank of America.

Peter John Henderson: Go ahead, yes.

Mike Graw: Yes, good morning, and thank you for taking the question. I'm just wondering if you can help us sort of think through the size of the potential benefit from an extended run for both the Knicks and the Rangers in the playoffs. And then also just how much you know, or how deep of a run for both teams is already contemplated in your guidance. Thank you, Peter.

Peter John Henderson: Yes, good morning, and thank you for taking the question I'm. Just wondering if you can help us sort of think through the size of the potential benefit from an extended run for both the Knicks and Rangers in the playoffs and then also just.

Mike Graw: How much or how deep of a run for both teams is already contemplated in your guidance. Thank you.

Mike Graw: Thank you, Peter, for the questions. I appreciate it.

Mike Graw: Thank you Peter for the questions I appreciate it.

Mike Graw: So in terms of the benefit of an extended playoff run for the Nixon Rangers, arena life achieves, as you're aware. Arena license fees, as I think you're aware, are fixed, but there are certainly variable revenue streams that we participate in and share with our partners in sports. I'm talking about things like food and beverage, merchandise, single events, and suite sales. So each event is incremental in that regard. As well as on a more macro basis, I think the team's success can drive attendance and renewals on a go-forward basis. So our interests are very much aligned with the Nixon Ranges in that regard.

Mike Graw: So in terms of the benefit of an extended play off on for the Knicks and Rangers Arena licensees as Delaware.

Mike Graw: Arena license fees I'm, sorry, we had a little more arena license fees as I think youre aware under our fixed but there are certainly variable revenue streams that we participate in and share with our.

Mike Graw: Our partners at sports I'm talking about things like food and beverage merchandise single events suite sales. So each event is incremental in that regard.

Mike Graw: As well as on a more macro basis I think the team's success can drive attendance and renewals on a go forward basis. So our interests are very much aligned with the Knicks and Rangers in that regard I mean look we're a new York based company, where New York centric company. What's good for New York is going to be good for us over the longer haul.

Mike Graw: I mean, we're a New York-based company; we're a New York-centric company. What's good for New York is going to be good for us over the longer haul. And as well as in terms of short-term economics, we do enjoy those variable incremental revenues. The flip side of that coin would be on the booking side. That's something we've become pretty experienced and adept at in terms of managing potential conflicts, working with the league, working with artists, and kind of optimizing scheduling.

Mike Graw: As well as in terms of short term economics, we do enjoy those variable incremental revenue streams.

Mike Graw: Lip side of that coin would be on the booking side.

Mike Graw: Something we've become pretty experienced an adept at in terms of managing potential conflicts working with the league working with artists.

Mike Graw: And kind of optimizing scheduling I think this week is a great example of that right. We're just coming off a run of four consecutive days of home playoff games and Tonight will have Billy Joel at the garden.

Mike Graw: I think this week is a great example of that, right? We're just coming off a run of four consecutive days of home playoff games, and tonight we'll have Billy Joel in the garden. So just one data point to show how we've managed to enhance flexibility around that. So, you know, you said the Knicks and Rangers would go on an extended run, and we're all hopeful and optimistic that that will be the case.

Mike Graw: So just one data point to show, how we've managed to enhance flexibility around that so she said the Knicks and Rangers go on an extended run and we're all hopeful and optimistic that that will be the case, there could be a small subset of shows at risk and buy at risk at risk of being pushed into fiscal 'twenty five and we've actually managed to hold that down to the point where the number.

Mike Graw: There could be a small subset of shows at risk, and by at risk, I mean at risk of being pushed into fiscal 25, and we've actually managed to hone that down to the point where the number of shows in question is really around low single digits. As to your second question, I'm not going to get specific on what's baked into our internal forecast in terms of the number of rounds. I'll just say that our guidance encompasses, and the range of our guidance encompasses all these types of scenarios as far as how far the Nixon ranges go. We would not change our guidance for any of those.

Mike Graw: Shows in question is really around low single digits.

Mike Graw: As to your second question I'm, not going to get specific on what's baked into our internal forecast in terms of number of routes I will just say that our guidance encompasses the range of our guidance encompasses all of these types of scenarios as far as how far the Knicks and Rangers, we would not change guidance for any of those outcomes.

Speaker Change: Thank you.

Mike Graw: Sure.

Operator: Your next question comes from the line of David Karnovsky, with JP Morgan. Please go ahead.

Speaker Change: The next question comes from the line of.

David Karnovsky: David Karnofsky.

David Karnovsky: With Jpmorgan.

David Karnovsky: Please go ahead.

Mike Graw: Hey, maybe just following up on that last point, I'm curious, you know, how many days in general does the arena keep on hold when it does its planning process, I mean, on hold for the playoffs? And what is the optionality to book acts on a short-term basis if those games aren't played, recognizing this is less of an issue this year? And then following up on capital allocation, you noted the share authorization wanted to zero in on what circumstances would need you to potentially restart a buyback. Thank you.

David Karnovsky: Hey, maybe just following up on that last point I'm curious.

Mike Graw: How many days in general does near Reno keep on hold when it does its planning process on hold for the playoffs.

Mike Graw: What is the Optionality.

Mike Graw: <unk> on a short term basis with those games are recognizing this is less of an issue this year.

Mike Graw: And then following up on capital allocation and the share authorization.

Mike Graw: Wanted to zero in on what circumstances would lead you to restart the buybacks. Thank you.

Mike Graw: Sure, so thank you David for the questions. What I'm going to do is I'm going to take your first question and then I'm going to ask Philip Dambrosio, our treasurer, who's with us, to address your question on capital allocation.

Speaker Change: Sure. So thank you David for the question is what I'm Gonna do is I'm going to take your first question and then I'm going to ask Phil to Ambrosia, Our treasurer, who is with us to address your question on capital allocation.

Mike Graw: In terms of how many days we keep on hold, I'm probably not going to get into specifics other than to say we generally have a kind of one and a half, two month window, which is the playoff window for both hockey and basketball, where we're again, managing it in the manner I described earlier. We continue to book acts. There's certain language in the contracts for acts at this time, day and date subject to change, that kind of thing. We remain in constant contact with the league, with the sports teams, with these acts in order to negotiate.

Speaker Change: In terms of how many days, we keep on hold.

Mike Graw: Probably not going to get into specifics other than to say, we generally have.

Mike Graw: Kind of a 152 month window, which is a playoff window for both hockey and basketball, where we're again managing it in a manner I described earlier, we continue to book acts.

Mike Graw: There are certain language in the contracts by accident. This time day and date subject to change that kind of thing we remain in constant contact with the Lee with the sports teams with these acts in order to manage and I again, I feel like we've done a really solid job on the bookings team has become very adept at maximizing utilization during this window, which can be challenging at times, but again done a really nice job and we.

Mike Graw: And again, I feel like we've done a really solid job, and the bookings team has become very adept at maximizing utilization during this window, which can be challenging at times, but they have again done a really nice job. And we don't really have too many shows at risk, as I alluded to earlier. You also asked about the ability to replace shows; I agree with you, that feels less relevant this year as both teams seem to be doing well, knock on wood.

Mike Graw: Don't really have too many shows at risk as I alluded to earlier.

Mike Graw: You also asked about the ability to replace shows I agree with you that feels less relevant this year as both teams seem to be doing well knock on wood.

Mike Graw: It depends on the type of the artist, what their schedule is, and it needs to be an artist that can sell out in a short period of time. There's a narrow pool of artists who could probably satisfy those criteria. It's possible. I don't know that it's probable, but it's certainly possible to book an event and sense that something has opened up unexpectedly.

Mike Graw: It depends on the type of the artists what their schedule is it needs to be an artist that can sell out in a short period of time, there is a narrow pool novartis, who could probably satisfied those criteria. It's possible I don't know that its probable but it's certainly possible to book an event to the extent something opened up unexpectedly.

Mike Graw: And with that, I'd like to defer to Phil if you could address the question on capital allocation. Great. Thanks.

Mike Graw: With that I'd like to defer to fill if you could address the question on capital allocation.

Philip Gerard DAmbrosio: Thanks, Mike. Hi David.

Phil: Great. Thanks, Mike.

Philip Gerard DAmbrosio: David.

Philip Gerard DAmbrosio: So our capital allocation priorities remain unchanged. We have two. The first is opportunistically returning capital to our shareholders, and the second is debt pay-down. Again, since our spinoff last April, we've repurchased approximately 140 million of our Class A shares outstanding, which represents about 10% of those Class A shares outstanding, and we have remaining authorization for repurchases of $110 million. So on a go forward basis, we will continue to opportunistically seek attractive opportunities to return capital to shelt and turn the debt pay down.

Phil: So our capital allocation priorities remain unchanged. We have two the first is opportunistically returning capital to our shareholders.

Philip Gerard DAmbrosio: And the second is debt paydown.

Philip Gerard DAmbrosio: Again since our spinoff last April we have repurchased approximately $140 million.

Philip Gerard DAmbrosio: Class a shares outstanding which represents about 10%.

Philip Gerard DAmbrosio: Those class a shares outstanding.

Philip Gerard DAmbrosio: And we have remaining authorization for repurchases of $110 million.

Philip Gerard DAmbrosio: So on a go forward basis, we will continue to opportunistically.

Philip Gerard DAmbrosio: Seek.

Philip Gerard DAmbrosio: Yes.

Philip Gerard DAmbrosio: Attractive opportunities to return capital to shareholders.

Philip Gerard DAmbrosio: Turning to debt Paydown.

Philip Gerard DAmbrosio: As Mike noted, our debt balance at the end of March is almost $630 million. And as we mentioned last quarter on our, Our names call in early February. In the December quarter, we paid down the rollover completely. So on a go forward basis, in terms of debt paydown, we will simply continue to pay the quarterly amortization on our term loan of $4 million per quarter. But we're not planning to pay down any more debt beyond that. When you think about leverage as the company continues to grow and generate more AOI, The company will naturally deliver, and when you keep in mind.

Philip Gerard DAmbrosio: As Mike noted our debt balance at the end of March is almost $630 million and as we mentioned last quarter on our.

Philip Gerard DAmbrosio: Earnings call in early February.

Philip Gerard DAmbrosio: In the December quarter, we paid down the rollover completely.

Philip Gerard DAmbrosio: So on a go forward basis in terms of debt Paydown, we will simply continue to pay the quarterly amortization on our term loan a.

Philip Gerard DAmbrosio: A $4 million per quarter.

Philip Gerard DAmbrosio: But we're not planning to pay down any more debt beyond that.

Philip Gerard DAmbrosio: So when you think about leverage as the company continues to grow and to generate more NOI.

Philip Gerard DAmbrosio: The company will naturally delever.

Philip Gerard DAmbrosio: And when you keep in mind a.

Philip Gerard DAmbrosio: Substantial level of activity on the repurchase front over these last 11 months. Currently, we're focused on digesting that meaning. We're going to build our cash balance up again. And as Mike noted, we sold most of our position in town square last month and generated just over $15 million of cash. So, on a go forward basis, we will rebuild the cash balance that syncs very nicely with the seasonality of our business. And at the same time, we're going to keep our eye on opportunities to return capital to Sherald.

Philip Gerard DAmbrosio: A substantial level of activity on the repurchase front over these last 11 months.

Philip Gerard DAmbrosio: Currently we're focused on digesting that meaning.

Philip Gerard DAmbrosio: We're going to build our cash balance up again and as Mike noted we sold.

Philip Gerard DAmbrosio: Most of our position in town square.

Philip Gerard DAmbrosio: Last month and generated just over $15 million of cash.

Philip Gerard DAmbrosio: So on a go forward basis, we will rebuild our cash balance that syncs very nicely with the seasonality of our business and at the same time, we're going to keep our eye on opportunities to return capital to shareholders.

Philip Gerard DAmbrosio: Thanks.

Speaker Change: Thank you.

Operator: Your next question comes from the line of Logan Angress with Wolf Research. Please go ahead.

Philip Gerard DAmbrosio: And next question comes from the line of Logan Anglers with Wolfe Research.

Logan Drake Angress: Please go ahead.

Operator: Hi, thank you. First, I'm curious.

Logan Drake Angress: Hi, Thank you.

Logan Drake Angress: First I'm curious with the garden only available for a relatively fixed number of days throughout the year, but with more and more artists touring or at least why the tolar hub.

Mike Graw: With the garden only available for a relatively fixed number of days throughout the year but with more and more artists touring or at least wanting to tour, how have you seen that supply, demand, and balance translate to pricing at the garden? And then, I'm curious; obviously, Christmas Spectacular has been a big success. I'm curious how you think about opportunities to potentially move more into owned and operated shows year-round, or is the focus just to continue growing Christmas Spectacular? Thank you.

Mike Graw: Have you seen that supply demand imbalanced translate to pricing at the garden.

Mike Graw: And then I'm curious.

Mike Graw: Obviously Christmas spectacular has been a big success.

Mike Graw: I'm curious, how you think about opportunities to potentially move more into owned and operated shows more year round or is the focus just to continue growing Christmas spectacular there. Thank you.

Mike Graw: Thank you, Logan, for the questions. In terms of your first question, I think you're right on the money. I think we're speaking specifically to the arena at the Garden. We are very well positioned in terms of supply and demand here. On the supply side, we'll do about 245 total events at the arena in fiscal 24, which, as we mentioned previously, would be, you know, internally a record for us. That does equate to about 70% utilization, relatively flat year over year.

Speaker Change: Thank you Logan for the questions in terms of your first Tim I think youre right on the money I think.

Mike Graw: Speaking specifically to the arena at the Garden, we are very well positioned in terms of supply and demand on the supply side.

Mike Graw: Do about 245 total events at the arena in fiscal 'twenty, four which as we mentioned previously would be internally a record for us that does equate to about 70% utilization relatively flat year over year, we managed to minimize the number of loading days and we've had some success in building having multi event days. So while number of events is up utilization is relatively flat.

Mike Graw: We've managed to minimize the number of load-in days, and we've had some success with having multi-event days. So while the number of events is up, utilization is relatively flat. I think there's some runway to improve that, but there is a scarcity of supply. You're absolutely correct in that regard. And then, in terms of demand, we do see more and more artists touring. We do see live experiences and live entertainment being very popular, and The Garden is a premium venue. Artists want to play here; we often have promoters that will book us first and then build the rest of the tour around that to make sure they can get a date.

Mike Graw: I think there is some runway to improve that but there is a scarcity of supply.

Mike Graw: Absolutely correct in that regard and then in terms of demand, we do see more and more artist touring we do see live experiences in live entertainment being very popular and the garden as a premium menu artist want to play here, we often have promoters that will book US first and then build the rest of the tour around that to make sure. They can get a day for us. So I think we do have some pricing power versus other vendors in that regard in terms of where.

Mike Graw: So I think we do have some pricing power versus other venues in terms of where we sit on the supply and demand curves. The point I would make is that this is not necessarily a new dynamic; it's reflected in the rates that we charge currently. We re-examine our pricing continuously, especially now while we're in a budget process, and within the context of these market dynamics.

Mike Graw: We sit in the supply and demand curves.

Mike Graw: The point I'd make that's not necessarily a new dynamic is reflected in the rates that we charge currently we reexamine our pricing continuously, especially now do it while we're in our budget process and within the context of these market dynamics.

Mike Graw: So it's not a new dynamic, but we are very well positioned in that regard. In terms of your second question on the Christmas Spectacular, the Christmas Spectacular is a very unique franchise with a very unique and kind of one-of-a-kind history. We did put up record revenues this past season. It's bounced back very nicely from the pandemic, and the economics are definitely different than some of the other shows we run due to content ownership.

Mike Graw: So it's not a new dynamic, but we are very well positioned in that regard.

Mike Graw: In terms of your second question on the Christmas Spectacular Christmas spectacular is a very unique franchise with a very unique.

Mike Graw: One of a kind history, we did put up record revenues. This past season bounce back very nicely from the pandemic and the economics are definitely different than some of the other shows we run into the content ownership.

Mike Graw: Right now, and I kind of alluded to this in response to an earlier question, our focus is on maximizing profitability of the Christmas show through a number of shows, through ticket yield, and through sell-through. In terms of the show itself, we will continue to make modest refinements to it in terms of upgraded technology and content refinements, whether that's adding a scene or modifying a scene. For example, last season, we added some drones and a force fairies scene to the show, all of which was very well received.

Mike Graw: Right now and kind of alluded to this in response to an earlier question. Our focus is on maximizing profitability of the Christmas show through a number of shows the ticket yield to sell through.

Mike Graw: In terms of the show itself, we will continue to make modest refinements to it in terms of upgraded technology content refinements, whether it's adding athene or modifying Samuel example, last season, we added some drones, we added a phosphorus seemed to show all of which was very well received so we will continue to refine and upgrade the show in that regard and we continue to be me.

Mike Graw: So we'll continue to refine and upgrade the show in that regard, and we continue to focus on the Rockettes brand. But that's where the focus is, on growing the profitability of the existing Christmas show. We don't currently have any plans to develop more owned content or new productions.

Mike Graw: Focus on the Rockettes brand, but thats, where the focus is on growing the profitability of the existing Christmas show. We're not we don't have any plans currently to develop more owned content to our new productions in that regard.

Mike Graw: Thanks, Logan. Operator, we'll take one last caller.

Speaker Change: Thanks, Logan operator, we'll take one last caller.

Mike Graw: Yes.

Operator: The final question comes from the line of Paul Golding, with McQuarrie Capital.

Mike Graw: Your final question comes from the line of Paul Golby.

Paul Golding: With Macquarie capital.

Paul Golding: Please go ahead.

Mike Graw: Thanks so much for taking the question. Mike was wondering if you could elaborate a bit more on how the Oakview relationship is going. I think you referred to it in relation to sponsorship and signage. Just wanted to get a broader view of how that's driving the business and if you're seeing any tangible uplift at the moment. Thanks.

Paul Golding: Thanks, So much for taking the question Mike I was wondering if you could elaborate a bit more on how the <unk> relationship is going I think you referred to it in relation to sponsorship and signage just wanted to get a broader view of how that's driving the business and if youre seeing any tangible uplift at the moment. Thanks.

Mike Graw: True, Paul. Thanks for the question. So our relationship with Oakview Group and their subsidiary Crown Properties, we announced it last September and really initiated it on October 1st. Right now, the structure of the deal is such that Crown Properties leads all of our sales and sponsorship signage inventory for all of our venues and for all of our live entertainment properties. We continue to retain certain functions in-house. We have a certain legacy expertise and constant liaison with, uh, Crown Properties, quite frankly, daily, if not more frequently, and all activation and fulfillment responsibilities in regards to these sponsorship deals, which can be complex, continue to reside with us internally. We're definitely encouraged by the momentum we're seeing right now. Um, we've had a couple of nice winds of late that are either closed or right at the finish line.

Speaker Change: Sure Paul Thanks for the question.

Mike Graw: So.

Mike Graw: Our relationship with <unk> group and their subsidiary Crown properties, We announced it last September I'm really initiated October one.

Mike Graw: Right now the structure of the deal is such that Crown properties leads all of our sales and sponsorship signage inventory for all of our venues and for all of our live entertainment properties. We continue to retain certain functions in house, we have certain legacy expertise in constant liaison with with crowd properties quite frankly daily if not more frequently and all activation and fulfilling.

Mike Graw: Responsibilities in regard to the sponsorship deals, which can be complex continues to reside with us internally. We're definitely encouraged by the momentum we're seeing right now we've had a couple of nice wins of late.

Mike Graw: That are either closed or right at the finish line. We've seen the pipeline is growing much more robust as time goes on so.

Mike Graw: We've seen the pipeline growing much more robust as time goes on. So, you know, this is a long-term deal that we have, and we expect it to be a long-term relationship. All the reasons we entered into this deal are starting to manifest themselves. I think we're still in the early innings of that deal, but it definitely feels like we're getting some traction right now in the marketplace, and we're seeing some trends that make us very encouraged and kind of validate the fact, you know, our initial rationale for entering. We'll continue to talk about going forward, but we're very encouraged and optimistic right now.

Speaker Change: This is a long term deal that we have and then we expect it to be a long term relationship and all the reasons. We entered into this deal is starting to manifest themselves I think we're still in the early innings of that deal, but it definitely feels like we're getting some traction right now in the marketplace and we're seeing some trends that make us very encouraging kind of validate the fact, our initial rationale for entering into this deal something we'll continue to talk about going forward, but we're.

Mike Graw: Very encouraged and optimistic right now.

Speaker Change: Great. Thanks, so much.

Ari Danes: I will now turn the call back over to Ari Danes for his closing remarks. Please go ahead.

Mike Graw: I will now turn the call back over to Ari Danes for closing remarks. Please go ahead.

Ari Danes: Thank you all for joining us. We look forward to speaking with you on our Year-End Earnings Call in August. Have a good day.

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

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining us. You may now disconnect.

Ari Danes: Yes.

Ari Danes: Ladies and gentlemen that concludes.

Operator: That concludes today's call. Thank you all for joining you may now disconnect.

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Ari Danes: Thank you.

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