By - Raza Naqvi
- On February 13, MSGS announced that it would invest up to US$ 10 million in Xtract One Technologies.
- On February 7, Madison Square announced releasing its financials for the second quarter of fiscal 2023.
- Since the past week, the MSGS stock surged by 0.42 per cent.
Madison Square Garden Sports Corp. (NYSE: MSGS) is one of the country's top sports-holding businesses, among many others. MSGS represents some of the most well-known teams in professional sports, including the New York Knicks (NBA) and the New York Rangers (NHL).
Through Knicks Gaming, an NBA 2K League franchise, and Counter Logic Gaming (CLG), an esports organization, MSGS also has a recognized presence in the developing esports industry.
Let's find out more about MSGS in this article and see how it has been faring over the past few months.
As artificial intelligence has once again become the talk of the town since the launch of OpenAI's ChatGPT, it seems MSGS is also planning to explore AI further.
On February 13, MSGS announced that it would invest up to US$ 10 million in Xtract One Technologies Inc., a leading security technology firm that prioritizes the user experience for patron access by utilizing artificial intelligence (AI).
According to a Markets and Markets report, the AI market was predicted to be valued at US$ 86.9 billion in 2022 and is projected to grow at a CAGR of 36.2 per cent from 2022 to 2027. The main growth drivers could be the development of data-based AI, deep learning advancements, and the requirement for robotic autonomy to maintain competitiveness in the worldwide market.
On February 7, the company announced releasing its financials for the second quarter of fiscal 2023. MSGS said its revenues were US$ 353.7 million, an increase of US$ 64.1 million from Q2 2022.
Notably, MSGS' intention to return about US$ 250 million to shareholders was carried out during the Q2 FY23. This was done in light of the company's successful fiscal 2022 and the trading price of its common stock in comparison to the intrinsic value of its professional sports clubs.
The return comprised a US$ 75 million accelerated share buyback program that the company completed in January 2023 and a special cash dividend of US$ 7 per share, or roughly US$ 173 million.
In Q2 2023, the company's operating income was US$ 51.5 million, representing an increase of 43 per cent year-over-year (YoY). Meanwhile, the adjusted operating income was up 38 per cent YoY to US$ 76.6 million.
For the six months ended December 31, 2022, the net cash provided by operating activities amounted US$ 31.57 million, up from US$ 24.03 million from the same comparable period of the previous fiscal year.
At the time of writing, the market capitalization of MSGS was US$ 3.63 billion, and its earnings per share (EPS) was 2.23. Since the past week, the MSGS stock surged by 0.42 per cent, and in terms of year-to-date (YTD) performance, it returned 1.86 per cent.