President and CEO Hank Ratner said: "Our Company delivered strong results in our fiscal second quarter, while navigating through the delayed start of the NHL season and the impact of Hurricane Sandy. The second phase of the Transformation has been enthusiastically received by all of our key customers, including season ticket holders, suite holders and marketing partners, and we now look forward to the successful completion of the final phase of this historic project this upcoming offseason. We remain confident that our Company is well-positioned to drive long-term growth and ongoing value creation for our shareholders."
Results from Operations
Segment results for the quarters ended December 31, 2012 and 2011 are as follows:
|Revenues||AOCF||Operating Income (Loss)|
|$ millions||F'Q2 2013||F'Q2 2012||% Change||F'Q2 2013||F'Q2 2012||% Change||F'Q2 2013||F'Q2 2012||% Change|
|Other (includes eliminations)||(9.9)||(9.2)||(7)%||(2.9)||(1.7)||(74)%||(17.1)||(13.9)||(22)%|
|Note: Does not foot due to rounding|
|1. See definition of adjusted operating cash flow ("AOCF") included in the discussion of non-GAAP financial measures below.|
MSG MediaFor the fiscal second quarter, MSG Media revenues of $156.8 million grew 10%, as compared to the prior year period. Affiliate fee revenue increased $5.2 million, as compared to the prior year quarter, primarily attributable to higher affiliation rates, with the overall increase largely offset by the net impact of recorded provisions that are not expected to be recurring. Advertising revenue increased $5.1 million, as compared to the prior year quarter, primarily due to higher sales generated from professional sports programming, resulting mainly from an increase in the number of Knicks telecasts, partially offset by the absence of NHL telecasts. In addition, Fuse advertising revenue increased, as compared to the prior year quarter. Other net revenues increased $4.1 million, as compared to the prior year quarter, primarily attributable to a short-term programming licensing agreement. AOCF of $95.6 million increased 50% and operating income of $90.2 million increased 70%, both as compared to the prior year quarter, primarily due to lower direct operating expenses and higher revenues.