The Madison Square Garden Company (MSG) has reported a 32.74 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $57.73 million, or $2.39 a share in the quarter, compared with $43.49 million, or $1.74 a share for the same period last year.
Revenue during the quarter grew 8.35 percent to $445.15 million from $410.84 million in the previous year period. Gross margin for the quarter expanded 86 basis points over the previous year period to 40.09 percent. Total expenses were 86.91 percent of quarterly revenues, down from 88.06 percent for the same period last year. This has led to an improvement of 115 basis points in operating margin to 13.09 percent.
Operating income for the quarter was $58.25 million, compared with $49.04 million in the previous year period.
However, the adjusted operating income for the quarter stood at $95.96 million compared to $82.10 million in the prior year period. At the same time, adjusted operating margin improved 157 basis points in the quarter to 21.56 percent from 19.98 percent in the last year period.
President and CEO David O’Connor said, "For the fiscal 2017 second quarter, we delivered robust top-line and adjusted operating income growth - driven by broad-based strength across our Entertainment and Sports businesses. In addition to a strong quarter for our core operations, we took an important step in expanding our live offerings with our purchase of a majority interest in TAO Group, which adds a complementary world-class entertainment dining and hospitality group that generates substantial adjusted operating income, with significant growth potential. Looking ahead, we are confident that with our continued commitment to delivering exceptional live experiences, we are well-positioned for attractive long-term growth and asset value creation for our shareholders."
Operating cash flow falls marginally
The Madison Square Garden Company has generated cash of $109.93 million from operating activities during the first half, down 3.81 percent or $4.35 million, when compared with the last year period.
The company has spent $62.69 million cash to meet investing activities during the first six months as against cash outgo of $79.13 million in the last year period.
The company has spent $81.21 million cash to carry out financing activities during the first six months as against cash inflow of $1,509.53 million in the last year period.
Cash and cash equivalents stood at stood at $1,410.34 million as at Dec. 31, 2016.
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