The Madison Square Garden Company reported financial results for the second quarter ended December 31, 2014. Revenues of $542.5 million grew 7%, as compared to the prior year quarter.
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This was primarily due to an increase in revenues in the Company’s MSG Entertainment and MSG Sports segments, as well as the MSG Media segment, excluding the impact of prior year quarter Fuse revenues as the Company completed its sale of the network on July 1, 2014.
The increase in revenues in the MSG Entertainment segment includes the positive impact of the Forum being open in the fiscal 2015 second quarter, versus being closed for renovation during the prior year quarter.
The increase in revenues in the MSG Sports segment includes the positive impact of the Madison Square Garden Arena being fully open in the second quarter, versus the prior year quarter in which the venue was closed until late October due to the final phase of the Transformation project.
Adjusted operating cash flow (AOCF) of $149.8 million increased 18%, as compared to the prior year quarter, due to improved AOCF results in all three of the Company’s business segments, partially offset by an increase in unallocated corporate expenses.
The absence of Fuse’s operating results did not have a material impact on MSG Media AOCF or total company AOCF in the fiscal 2015 second quarter. Operating income of $138.3 million increased 43% and net income of $61.2 million ($0.78 per diluted share) increased 1%, both as compared to the prior year quarter.
President and CEO Tad Smith said, "Our Company delivered double-digit AOCF growth in the second quarter as we benefited from the full availability of the Forum and The Garden, as well as broad-based organic growth.
"Additionally, we are continuing to explore the possible separation of our businesses and believe that the creation of two distinct publicly traded companies would provide both new entities with greater flexibility to pursue their own business plans, while enabling investors to evaluate more clearly each company’s unique assets and potential." ■