NEW YORK (AP) — Madison Square Garden said Friday that its net income fell by half in the fiscal third quarter on costly delays for a Rockettes production and a change in management.
The delays affected the theatrical production "Heart and Lights," featuring the Rockettes. The show was scheduled to run from late March to early May, but it was postponed only days before previews were scheduled to start because the production needed more work. "Heart and Lights" is now scheduled for 2015 because Radio City Music Hall is booked for the rest of the year.
In February MSG said CEO Hank Ratner was stepping down as president and CEO in order to become vice chairman of the company. 2.96
MSG said its net income fell to $19.1 million, or 24 cents per share, from $38.4 million, or 49 cents per share. Revenue rose 11 percent, to $459 million from $412.4 million.
FactSet says analysts expected 40 cents per share in net income and $436.6 million in revenue.
Shares of MSG lost $2.90, or 5.3 percent, to $52.19 in midday trading. The stock has fallen almost 14 percent over the past year.
The company owns the NBA's New York Knicks, the NHL's Rangers, the MSG television networks, and venues including Madison Square Garden, Radio City Music Hall, and the Beacon Theatre.
It said revenue from sporting events grew 12 percent to $233.7 million. Entertainment revenue jumped 49 percent to $52.8 million even though Radio City wasn't available for most of the quarter because of "Heart and Lights" rehearsals. Media revenue rose 3 percent to $190.8 million.
Ratner became CEO of Madison Square Garden Co. in 2010, after MSG was spun off from Cablevision Systems Corp. Tad Smith is now the company's president and CEO.