Today, we are thrilled to announce our record-breaking revenue exceeding $1 billion for the fiscal year 2024, a testament to the strong performance of our marquee teams, the New York Knicks and the New York Rangers. This success was further reflected in our adjusted operating income of $172 million, buoyed by the Rangers winning the President’s Trophy and the Knicks recording their best regular season in a decade.
The fan engagement, high ticket sales, and increased spending at the arena, along with robust local TV ratings, all contributed to our exceptional financial performance. While we celebrate these achievements, we are also mindful of the challenges ahead, particularly with the evolving sports media landscape potentially impacting our local media rights revenue.
Looking ahead, we are focused on continuing our growth through renewals and new sales in premium hospitality. We have plans to expand club space and renovate suites at The Garden, enhancing the fan experience and driving future growth. Additionally, the positive impact of our playoff runs is expected to extend into fiscal ’25.
While we navigate the changing media landscape, we remain confident in the value of our teams and are open to strategic financial decisions, including potential minority stake sales. Our commitment to maximizing the value of our assets and exploring opportunities to strengthen our financial standing in the competitive world of sports entertainment remains unwavering.
We are excited about the future and the opportunities that lie ahead for MSG Sports. Thank you for your continued support, and we look forward to another successful year ahead. I am excited to continue working with my colleagues to strengthen and enhance the legacies of our two iconic franchises, the Knicks and the Rangers. This past year, both teams had successful regular and post-season campaigns, leading to strong financial results for our business. In fiscal ‘24, MSG Sports generated revenues exceeding $1 billion and adjusted operating income of $172 million, setting new records for our Company. These results reflect the strong demand from our fans and partners throughout the season, as well as the outstanding performance of our teams on the ice and on the court.
Looking ahead to the ‘24, ‘25 seasons, both the Knicks and Rangers have key players secured under long-term contracts and are poised to build upon last year’s success. Our fans’ enthusiastic support was evident in many areas of our business, from ticket sales and in-arena spending to local TV ratings and engagement on social media. For the upcoming seasons, we have decided not to increase season ticket prices for our loyal renewing season ticket holders, while also offering new ticket packages to meet increased demand.
We have also strengthened our connection with fans through special events, merchandise partnerships, and engaging content on social media. We will continue to look for unique ways to engage with fans and deliver compelling content through our digital platforms. Additionally, we have welcomed new marketing partners and seen record suite revenues in our premium hospitality business.
As we navigate through changes in the media rights landscape and evaluate the potential impact on our local media rights revenue, we remain committed to delivering exceptional experiences for our fans and partners. We look forward to another successful season ahead for the Knicks, the Rangers, and our entire organization. Daniel Juran: Thank you. I wanted to ask about the impact of the additional playoff games on your fourth quarter results. Can you provide more detail on how these games contributed to your total revenues and adjusted operating income? And also, could you elaborate on the factors that drove the increase in direct operating expenses during the quarter?
Victoria Mink: Hi, Daniel. Thanks for your question. The additional playoff games in our fourth quarter had a significant impact on our total revenues, which increased to $227.3 million compared to $126.9 million in the prior year period. Event-related revenues, which include tickets, food, beverage, and merchandise revenue, saw a 116% year-over-year increase to $152.1 million. Suites, sponsorship, and signage revenues also showed a 71% increase to $34.7 million. As for adjusted operating income, it increased to $56.5 million primarily due to the increase in revenues from the additional games. However, we did see higher direct operating expenses during the quarter, driven by playoff-related expenses, other team operating expenses, and arena operating lease costs, all of which were impacted by the increased number of games played at The Garden. These increases were partially offset by a decrease in provisions for team personnel transactions and lower net provisions for revenue sharing expense and luxury tax.
Daniel Juran: Thank you for the detailed explanation.
Operator: There are no further questions at this time. I will now turn the call back over to Ari for closing remarks.
Ari Danes: Thank you all for joining our call today. We appreciate your interest in our company and look forward to updating you on our progress in the future. Have a great day. Paul Golding: Thank you for that, Jamaal. Could you provide more insight into the financial implications of the playoffs this year, such as per game margins or contribution? Additionally, with both teams consistently making playoff appearances in recent years, how is this affecting your future planning, assuming team stability for next year? Thank you. As previously mentioned, our renewal rate for season ticket packages last season was approximately 94%, showing strong loyalty from our fans. Additionally, the excitement from playoff games drives new fans to our games, as seen in the increase of over 830,000 net new social media followers in fiscal ‘24, with nearly 35% added during the playoffs. This heightened demand extends to our corporate partnerships, allowing us to sell more premium hospitality and marketing packages. The momentum from the playoffs is carrying forward, with playoff-related revenues for the fourth quarter reaching $128 million compared to $56.2 million in the prior year period. This positive impact is expected to continue into fiscal ‘25. Thank you for joining us, and we look forward to our next earnings call.