MSG Networks Inc. Reports Fiscal 2017 First Quarter Results

  Fiscal 2017 first quarter revenues of $153.6 million Fiscal 2017 first quarter operating income of $74.5 million  Fiscal 2017 first quarter adjusted operating income of $78.9 million

NEW YORK, Nov. 03, 2016 (GLOBE NEWSWIRE) -- MSG Networks Inc. (NYSE:MSGN) today reported financial results for the fiscal first quarter ended September 30, 2016. 

For the fiscal 2017 first quarter, MSG Networks Inc. generated revenues of $153.6 million, an increase of 4% as compared with the prior year period.  In addition, the Company generated operating income of $74.5 million, adjusted operating income of $78.9 million and income from continuing operations of $40.4 million. (1)

For the three months ended September 30, 2015, the reported financial results of MSG Networks Inc. reflect the results of the sports and entertainment businesses of The Madison Square Garden Company as discontinued operations.  Please note that results from continuing operations for this period include certain corporate overhead expenses that MSG Networks Inc. did not incur in the fiscal 2017 first quarter and does not expect to incur in future periods, but did not meet the criteria for inclusion in discontinued operations.  The reported financial results of MSG Networks Inc. for the three months ended September 30, 2016 reflect the Company's results on a standalone basis, including the Company's actual corporate overhead. 

President and CEO Andrea Greenberg said, "We are pleased with the Company's start to fiscal 2017 as we continued to build on last year's strong financial performance with solid revenue and operating results for the first quarter.   With the NBA and NHL seasons now underway, we remain focused on capitalizing on our unique position with advertisers and affiliates - as a provider of exclusive live sports content in the nation's number one media market - to generate significant value for our shareholders."
Fiscal Year 2017 First Quarter Results      
(In thousands, except per share data)   Three Months Ended  
    September 30,  
    2016  
Revenues   $ 153,578    
Operating income   74,507    
Adjusted operating income   78,861    
Income from continuing operations   40,361    
Diluted EPS from continuing operations   $ 0.54    
       
 
1. The Company formerly referred to adjusted operating income as adjusted operating cash flow. The components of adjusted operating income are identical to the components of adjusted operating cash flow.  See page 3 of this earnings release for the definition of adjusted operating income included in the discussion of non-GAAP financial measures.
 

Summary of Reported Results from Continuing Operations Fiscal 2017 first quarter total revenues of $153.6 million increased 4%, or $5.4 million, as compared with the prior year period.  Affiliation fee revenue increased $5.7 million, primarily due to higher affiliation rates, partially offset by the impact of a low single digit percentage decrease in subscribers versus the prior year period.  Advertising revenue increased $0.2 million while other revenues decreased $0.5 million.   

Direct operating expenses of $60.9 million increased 1%, or $0.8 million, as compared with the prior year period.  The increase was primarily due to higher rights fees expense, partially offset by other programming-related cost decreases. 

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