Shares of Madison Square Garden Entertainment (NYSE: MSGE) hit an all-time high this week, surging on news of a strong third fiscal quarter and reports of a potential sale of the Hulu Theater.
The company owns Madison Square Garden and Radio City Music Hall, having been spun off of the other MSG businesses earlier this spring – those businesses now trade as Sphere Entertainment.
MSGE stock moved to $36.09 as of Friday morning on the good news, with Sphere Entertainment (NYSE: SPHR) at at $24.77. MSGE had been down at around $32/share in the immediate wake of the April stock split.
Highlights of the earnings report from Marketwatch:
The standalone company posted a profit of $21.7 million for the three months ending in March, compared with a loss of $3.9 million reported by the traditional live entertainment businesses previously owned by Sphere Entertainment in the same quarter a year ago.
Earnings were 42 cents a share, compared with a loss of 8 cents per share in the year-ago period.
Analysts polled by FactSet had been expecting earnings of 21 cents a share.
Sales jumped to $201.2 million from $194 million last year.
The New York-based company said it now expects $835 million to $845 million in revenue for the 2023 year.
ASTM Group Considering Purchase of Hulu Theater
An Italian private development company, the ASTM Group, is reportedly in negotiations with Madison Square Garden (MSG) for a potential $1 billion deal to purchase the theater within the iconic venue. The proposed acquisition is part of ASTM’s plan to reshape Penn Station, according to a report from Crain’s New York.
Late on Wednesday, Crain’s New York revealed the potential sale of The Theater at Madison Square Garden, along with a nearby service road, to the ASTM Group. However, a source close to the matter informed The Post that an agreement between the two companies is still far from being finalized.
Peter Cipriano, the senior vice president for project management at ASTM North America, expressed optimism about the project in a statement to Crain’s. He stated, “We have a path forward to deliver our project that fully considers all aspects from property acquisition to construction, financing, and the long-term relationship between the new station building and MSG.”
In March, ASTM proposed a cost-effective alternative plan to renovate Penn Station after a previously proposed $7 billion plan by the Metropolitan Transportation Authority (MTA) to revamp the Midtown transit hub was delayed.
ASTM’s plan involves demolishing the theater and constructing a grand new entrance on Eighth Avenue, opposite the recently opened Moynihan Train Hall. As part of the deal, ASTM would also manage the station for a period of 50 years.
The potential purchase of the theater by the ASTM Group marks a significant development in their effort to reshape Penn Station. However, the negotiations are still ongoing, and both parties have yet to reach a final agreement.
If the deal goes through, it would not only signify a major transformation for Madison Square Garden but also bring about a new era for Penn Station, with the aim of enhancing the overall transportation experience and revitalizing the iconic transit hub.