Madison Square Garden Entertainment Corp. (MSGE) reported a 74% drop in fiscal year 2025 profit, with net income falling to $37.4 million from $144.3 million in fiscal 2024, largely due to the end of Billy Joel’s decade-long residency at Madison Square Garden, which concluded on July 25, 2024.
The residency, featuring monthly performances since January 2014, was a significant revenue driver, and its absence contributed to a 17% decline in fourth-quarter entertainment revenue to $118.7 million. Total company revenue for the year dipped 2% to $947.2 million, with fewer concerts at the Garden and reduced Knicks and Rangers games also impacting event-related revenues, which fell $21.6 million, and food, beverage, and merchandise sales, down $8.3 million. Despite hosting over 975 events across its venues, the Garden’s utilization rate was only 65%.
However, MSGE saw bright spots, notably with the Christmas Spectacular, which generated a record $172 million from 1.1 million tickets. The company anticipates growth in fiscal 2026, with plans for a new major residency, increased concert bookings, and an expanded Christmas Spectacular run of 211 shows. MSGE’s stock fell over 10% following the earnings release on August 13, 2025, reflecting investor concerns, though analysts like JPMorgan remain optimistic about future growth, raising the stock price target to $43 from $39.