Investing.com - Madison Square Garden (NYSE:MSG) slumped on Tuesday after its fiscal fourth-quarter earnings failed to meet forecasts due to weakness in its sports business.
The owner of the iconic venue, as well as the New York Knicks and New York Rangers, reported a loss per share of $3.08 on $263.6 million in revenue, compared with estimates for a loss of $2.64 on $270.1 million in revenue.
MSG Entertainment revenue slipped 6% from the year-ago period to $174 million, while MSG Sports revenue dropped 32% to $90 million.
Shares fell nearly 8% in midday trading.
The company said its decrease in revenue was mostly due to a new accounting standard from contracts, which was offset by revenue from other live-sporting events.
“Looking ahead, we remain confident in the strength of our core businesses and expect fiscal 2020 to be an important year as we work to complete the proposed sports spin-off and begin to usher in the company's next chapter, with MSG Sphere in Las Vegas starting to take shape,” CEO James Dolan said in a press release.