Madison Square Garden Sports Corp. (NYSE:MSGS) reported a 9% increase in revenue for the second quarter of fiscal year 2025, exceeding analysts' expectations.
Revenue reached $357.8 million, surpassing the $350.5 million forecast by three analysts surveyed by Zacks.
The company cited growth in several key areas, including ticket sales, suites, sponsorships, and food and merchandise.
Despite the revenue growth, operating income plummeted by 54% to $13.3 million.
The company attributed this decline to increased expenses, primarily driven by higher team personnel compensation and league revenue sharing expenses.
Net income for the quarter was reported at $1.1 million, or 5 cents per share, missing Wall Street projections of 25 cents per share based on a Zacks Investment Research survey.
Adjusted operating income also saw a significant decrease, falling by 45% due to the aforementioned cost increases.
While the company experienced positive momentum in its core revenue streams, the rising costs associated with team operations and league participation impacted overall profitability.